Audi has given the A3 PHEV a huge upgrade, with a higher battery capacity which gives an electric range of up to 88 miles and 5% benefit-in-kind rates for company car drivers. It also has 50kW DC charging capability for the first time.

The new turbocharged 1.5-litre TFSI petrol engine replaces the previous 1.4 TFSI,and is mated to a new electric motor. Together they produce 201bhp, giving a 0-62mph time of 7.4 seconds and a top speed of 140mph. The all-electric top speed is 87mph. 

New model is also able to coast with the engine switched off, or the electric motor recuperates energy if the driver uses paddles to increase regen braking. When slowing down, the electric motor takes over the deceleration alone up to around 0.3 G. When braking, the electric motor can recover up to 43kW of power.

The new battery has a usable capacity of 19.7kWh, almost 50% larger than the previous model. For the first time, Audi is offering DC charging at fast-charging stations for a plug-in hybrid model. The A3 Sportback 40 TFSI e uses DC charging with up to 50 kW, meaning a battery recharge from 10-80 percent can be achieved in less than half an hour. Charging at AC charging points such as a wallbox is at up to 11kW. 

The 88 mile range means the new A3 will be taxed at 5% benefit-in-kind for company car drivers, compared to 8 or 12% for the old model, saving hundreds per year in liability.

The new A3 Sportback 40 TFSI e goes on sale in the UK in November, priced at £39,150 for the Sport, £41,430 for the S-Line and £42,880 for the Black Edition.