AH, the hot hatch… beloved of petrolheads, boy racers and those of a certain age who just cannot shrug off that need for speed.

We Brits just love these pocket-sized performance cars that provide driving thrills at a relatively affordable price.

Traditionally the prerogative of cheaper brands, the premium manufacturers are now looking to capitalise on this love affair.

There’s no better example than Audi’s foray into this sector with the new S1, which matches a two-litre 231PS engine to its renowned quattro all-wheel-drive system to provide a sure-footed fireball.

With a 0 to 62mph sprint time of 5.8 seconds and top speed of 155mph, it has the right credentials – and the right badge – to make its mark.

There’s a satisfying growl from that engine when the mood takes you and traction galore when you power into a B-road corner.

The first Audi sub-compact car to employ all-wheel-drive, it takes the proven framework of the A1 hatchback as its basis and injects it with all those attributes both cosmetic and performance-wise that make it attractive to fans of this type of vehicle.

And even with its premium brand status, it still comes in with a price tag of about £25,000.

Available as a three or five-door, there’s an understated but recognisably sporty element about its appearance.

Audi boasts that the combination of its sports car virtues and direct handling, combined with permanent quattro drive, will bring it a new legion of fans.

I bore witness to this at a recent motor show when a whole procession of S1 enthusiasts pulled up alongside RS, ST and Type R and GTI hordes. Welcome to the club.

The firepower is supplied by a new TFSI engine linked to a short-shift six-speed manual gearbox.

Up to 40.3mpg is achievable in the three-door version, or 39.8mpg in the Sportback (five-door).

The suspension configuration has been reworked, as has the electromechanical power steering. At the rear a four-link design replaces the torsion beam suspension used for A1 models. Damper settings are also adjustable via the Audi drive select adaptive dynamics system, which allows the driver to vary the response of the throttle.

Riding on standard 17-inch wheels with 18-inch alternatives available as an option, striking ‘S’-specific styling aligns the S1 with the thirteen other members of the performance-oriented S quattro series, as do standard xenon-plus headlights, which are linked to LED rear lights.

Audi has opted for dark interior tones to contrast with the vibrant exterior colours, so expect piano black finishes and dark grey scales alongside pedal caps are in brushed stainless steel. Sports seats with combination leather and cloth upholstery are standard, as are creature comforts including electronic climate control, a six-speaker single CD audio system with auxiliary iPod connection and SD card reader linked to a 6.5-inch retractable colour display, a Bluetooth interface and a driver’s information system.

From the options list customers can choose S sports seats in black leather with more pronounced bolsters and integrated head restraints for even more rigid in-seat support, or opt for a quattro interior styling package which includes these and adds a choice of three colours – high gloss black, red or yellow – for sections of the backrest. The quattro styling package also adds enhancements such as a flat-bottomed leather multi-function steering wheel with contrast stitching in silver, red or yellow and door armrests in black leather.

More familiar optional features include the advanced keyless access and ignition system, hard disk-based MMI navigation-plus and a Bose surround sound system.

This is premium brand hot hatch motoring with an Audi twist.