Audi has confirmed that it will be developing a hybrid powertrain for the multi award-winning A3 small family car, in conjunction with the Volkwagen TwinDrive program that will produce the VW Golf hybrid.

At the center of the powertrain for the hybrid A3 is a 1.6-liter four-cylinder diesel engine that is good for 105 bhp. The diesel engine is backstopped by a 30kW electric motor driving the front wheels and two 30kW in-wheel electric motors to drive the rear wheels. Given this configuration, the A3 becomes a four-wheel drive under electric power and for short runs.

TwinDrive technology will help the hybrid A3 gain efficiency of “over 113 mpg”, according to Audi. The top speed is pegged at 106 mph. Electric power is sourced from a lithium-ion battery pack mounted in the boot’s floor. The battery can be recharged by energy gained from braking as well as by the main engine.

There are still no tentative dates for the A3 TwinDrive, although sources say that fleet trials could start by 2012.