Major announcements by motoring manufacturers of impending world domination are nothing new in my line of work,

but I am constantly amazed at just how rapidly – and in most cases convincingly – Audi has set about the task of becoming the world's leading manufacturer of premium vehicles. In a style that has become a trademark of the German automakers, Audi is either updating their existing models to lead to pack, inventing new segments or releasing new models in segments where they have previously not been present, in most cases using the template of BMW and Mercedes-Benz in order to be competitive wherever those they are trying to be unique.

The spunky A1, one of several new models released locally this year, is a prime example of the latter. With Audi already competing against the Mercedes-Benz A-class and the BMW 1 Series with the A3 – all three models being their smallest offerings – Audi set its sights firmly on the MINI, the ultimate designer hatch which, as we all know, is basically the smallest BMW available (until the i3 arrives, of course). While the rational need for small, designer hatchbacks are debatable, the irrational desire for these cars are what has made the MINI such a success. For Audi, the A1 is set to do the same.

The A1 certainly delivers as far as dynamic talent and premium quality expectations are concerned and I quite prefer it's styling to that of the MINI. As the A1 had no historical mould in which it had to fit, Audi's designers could basically do whatever they wanted with the existing Audi Design DNA, as long as they could fit it into a tiny package. What they've achieved is commendable, as the A1 has the most obnoxious and cheeky iteration of the Audi 'face' than any of its siblings. The rear also manages to ascribe to the immediately recognisable Audi stable, but it's the side profile that breaks new ground for the marque.

Surprisingly, the A1's interior is surprisingly spacious, bright and airy. It goes without saying that layout, ergonomics and tactile quality is as high as any other Audi model, but there are some clever detailing in this youthful model that sets it apart slightly. The instrument panel, for example, resembles an aircraft wing with its four round air vents reminiscent of jet engines. My test model had a number of optional extras included to make it stand out even more, so the 'Attraction' moniker with which the standard model is sold obviously didn't apply. As with the MINI, customisation is a core theme of the A1, so don't expect to see too many standard versions of our roads.

The A1 is currently only available with one diesel option, the same 1.6-litre unit from the Volkswagen Group that is found in the SA Car of the Year-winning Polo 1.6 TDI, mated to a 5-spee manual transmission. This magnificent engine develops a healthy 77kW of power and 250Nm of torque, available between 1 500 and 2 500 r/min. Making the A1 TDI even more efficient is the inclusion of a start-stop system and a recuperation system that recovers energy during braking. This brings the A1 TDI's fuel consumption down to a mightily impressive 4.7-litres/100km with carbon emissions at only 103 g/km, making it exempt from the carbon tax. Acceleration to 100km/h takes just over 11 seconds and on to a top speed of 190km/h.

While the TDI is geared more towards efficiency than outright performance, it rides on the same agile chassis as its sportier siblings. With its four wheels positioned on the corners of the car, its squat stance translates into excellent road holding, further enhanced by optimal weight distribution and the standard inclusion of an ESP stabilisation program and electronic limited slip differential. Steering is precise and composed and even the TDI proved to be extremely responsive under enthusiastic driving. Admittedly Audi hasn't managed to copy MINI's go-cart feel, but then I must also note that I've not had the opportunity to drive one of the sportier A1's and that BMW refuses to bring the MINI Cooper D to South Africa...

Retailing for R247 000, which includes a full 5-year/100 000km Audi Freeway maintenance plan, the A1 TDI technically has no competition on the South African market as there are no other diesel-powered premium 3-door hatchbacks available locally. Well done on that, Audi! Its only real competitors therefore remain the MINI Cooper (90kW, 160Nm, R228 868), and perhaps the Alfa Romeo MiTo 1.4 Distinctive (114kW, 230Nm, R248 022) and Citroën DS3 1.6 VTI Style (88kW, 160Nm, R204 900).

Like the MINI, the Audi A1's reason for existence is completely irrational and I've simply stopped trying to rationalise my liking of it. It's compact, easy to drive and looks great and even scores major points in my book for being available with a diesel engine. The A1 1.6 TDI is undoubtedly the most sensible model in the range in terms of frugality, but its also still 100% sporty Audi. If you were looking for a funky diesel-powered run-around, this would be it. It's expensive, but worth every cent.