The all-new Audi A3 Sedan will launch locally this month priced from $39,800, undercutting its Mercedes-Benz CLA-Class rival by more than $10,000.

Audi A3 Sedan - 1

Coming in $4200 more than the current entry-level A3 Sportback, the Audi A3 Sedan range will comprise two trim levels and three turbocharged four-cylinder engines. All variants will be fitted exclusively with a seven-speed S tronic dual-clutch transmission.

2Audi A3 Sedan - 2

The Ambition grade includes a 132kW/250Nm 1.8-litre petrol and a 110kW/320Nm 2.0-litre turbo-diesel, both priced from $44,800. Starting at $47,800, a flagship 1.8-litre quattro variant will again see outputs of 132kW and 250Nm.

Though full specifications will be announced at launch, Audi Australia says all A3 Sedan models will feature similar equipment levels to the A3 Sportback, as well as additional options.

The new A3 Sedan is Audi's first four-door since the nameplate launched in 1996 and expands the compact model's family beyond its existing three- and five-door hatch body styles.

Read CarAdvice's Audi A3 Sedan Review here.

Audi A3 Sedan manufacturer's pricing:

Audi A3 Sedan 1.4 TFSI COD Attraction – $39,800

Audi A3 Sedan 1.8 TFSI Ambition – $44,800

Audi A3 Sedan 2.0 TDI Ambition – $44,800

Audi A3 Sedan 1.8 TFSI quattro Ambition – $47,800