Audi will compete directly with the Mini with its new Metroproject quattro concept which made its world debut at the Tokyo Motor Show this week.

Likely to be rebadged as an A1 when a production model is ready, the new design show in the pictures below show how Audi believes it will compete with the Mini and Fiat’s 500.

The new model features a 1.4 TFSI petrol engine and a six-speed S tronic direct shift gearbox with steering wheel mounted pedals. Interior features include a mobile hand-held device offering mobile telephony, MP3 and video playback and GPS navigation. Drivers can also input sat-nav destinations and control in-car functions such as heating with the hand held device before leaving home.

The hand held device has already drawn comparisons with Apple's iPhone, which will help Audi tap into the youth market.

The production version is due to be revealed at the Paris Motor Show next September, with UK sales expected in early 2009.

Audi's hand held controller for the Metroproject