Car companies are not just vying to bring in new cars, but also inducting new segments in the automotive industry. Just recently Maruti Suzuki India launched compact MPV Maruti Ertiga in April and also introduced a new segment that is the compact MPV segment. Also BMW introduced new segment by launching BMW X6 and BMW X1.

And now Audi is all set to launch a new sedan based on the Audi A3 hatchback. The new sedan conceived on Audi A3 will be placed below Audi A4 featuring a tad longer wheelbase and roomier interiors. Audi’s new sedan will be inspired from the MQB platform with aplenty use of aluminium in the body of the car; this will be done primarily to reduce the weight of the car. Audi may power the car with two different engines, including the 1.8 L turbocharged 4-cylinder petrol mill and the 2.0L turbo diesel 4-cylinder engine.

Both the engines will be harmonized with a 7 speed S-tronic transmission. Rumour has it that the S3 and RS3 trim levels could also be launched with enhanced performance just like the S and RS subordinates of other Audi cars.

The new Audi S3 sedan could be equipped with the contemporary high tech features like the park assist, traffic sign detection, active lane assist, cruise control and adaptive lighting. Audi A3 sedan is likely to hit the showroom s in 2014 and is expected to be tagged around $28,145 (which is approximately Rs 15 lakh in Indian currency). Mercedes Benz too displayed the Concept style Coupe, basically a sedan which will be placed below Mercedes Benz C Class luxury sedan and will be priced in the same price range.

BMW has nothing up its sleeve to juxtapose with the new sedan from Audi A3 sedan. However, it could bring something in line with the 1 Series model to cross swords with the rival.