Audi unveiled its sub-compact metroproject quattro design at the Tokyo Motor Show this week and the car could enter production as the A1 within two years.

The B-segment model, which would enter the line-up below the A3, is a high performance hybrid combining a 150PS 1.4-litre petrol engine with an electric motor that Audi claimed would cut fuel consumption and emissions by 15 per cent.

The car showcases a remote control device that Audi claimed enabled the driver to set the satellite navigation, programme the audio system and turn on the heating from outside the vehicle. Although Audi has not yet rubber stamped the model for production – a spokesman said: “There is no confirmation there will even be a production version” – it admitted the metroproject was the latest in a line of design studies many of which have come to market “virtually unchanged”. Apart from the Mini, the spokesman said the new entry-level Audi would also compete with the Fiat 500 and forthcoming Alfa Romeo Junior. The car is likely to be built in Belgium from 2009. In December last year, Audi chairman Martin Winterkorn said future production at the Brussels plant could secure employment for 3,000 workers. “This will be an entry-level model designated as A1,” he said. “Considerably more than 100,000 vehicles could be produced if this proves to be viable at the Brussels plant.”