The German firm will show off its hybrid future at this year's Geneva motor show with the conceptual Audi A3 e-tron.
The plug-in hybrid will be powered by a combination of a standard 1.4 litre TFSI engine and an electric motor. A clutch links the petrol engine to a 75kw electric motor, which is integrated into a newly designed six-speed 'e-S tronic' transmission sending power to the front wheels.
When the two work in harmony the result is 201bhp and 350nm torque, making it the most powerful A3 in the current line-up.
All that shove equates to rather exciting performance figures too, with the 0-62mph dash dispatched in just 7.6 seconds and a top speed of 138mph.
The extra weight added to the car by the heavy battery packs stops this model being the quickest car in the line-up but it does mean the e-tron can return a wallet-pleasing 188.3mpg while only emitting 35g/km of CO2.
On top of this, drivers can select which power source the drivetrain uses, meaning the A3 e-tron can run on electricity alone for up to 31 miles and at speeds of up to 80mph, making short trips super-efficient yet surprisingly hasty.
Expect a production model to arrive in showrooms late 2014.