The latest Audi A4 is a crucial car for the German manufacturer, because despite the increasing popularity of SUVs and crossovers, the executive saloon is still held in high regard. The rivalry between the A4, BMW 3 Series and Mercedes C-Class goes back a long way, and now Jaguar is spoiling for a fight with the XE, which is as good to drive as it is to look at.

So, what’s new? Well, just about everything, with the A4 being both bigger and yet lighter than before, with large increases in power and efficiency. Audi also claims infotainment is now as important to customers as how a car drives, so it’s loaded with tech.

Performance

There isn’t exactly a slow A4, with even the 2.0-litre diesel ‘ultra’ model managing 0-62mph acceleration in 8.9 seconds, despite its frugal billing and just 148bhp. It feels quick enough on most roads, and even if you do think progress is tardy, it’s often because of the A4s exemplary refinement, with a glance at the speedo showing you are actually going rather quicker than you thought.

The 187bhp 2.0-litre diesel we drove did feel usefully quicker, but this was also because the seven-speed S tronic gearbox it was mated to changed gears so responsively. We’d certainly recommend allying the A4 to an auto if you can. There’s also a 3.0-litre diesel with 215bhp or 268bhp and, equipped with the latter and quattro four-wheel drive, the A4 becomes remarkably quick, reaching 62mph in just 5.3 seconds.

There’s no longer a 1.8-litre petrol, so your choices here are a 1.4-litre turbo with 148bhp, or a 2.0-litre with either 187bhp or 249bhp, with the pokier version getting quattro as standard.

Ride and Handling

It’s also clear the new A4 can handle power, lots of power.

Compared with the 3 Series, the A4 has had a reputation for being a bit of a steady eddy, with front-wheel drive rather than playful rear-wheel drive handling, and rather numb steering. So is the new A4 better? Well, the lighter bodywork certainly helps, and Audi has also made the suspension more compliant, so the A4 feels sprightlier and flows better with the road surface, particularly at higher speeds. Not exactly buzzing with feel then, but highly accomplished and relaxing for those long haul trips. It’s also clear the new A4 can lots of power, with the feistiest model available from launch boasting 268bhp and a monstrous 600NM of torque, sent to all four wheels. Even in this trim, the A4 feels unflustered, with peerless traction as you accelerate and steadfast grip in corners. It doesn’t feel quite as exciting to drive as a rear-wheel drive car, but its approachability and all-weather ability is very impressive. Fitted with adaptive suspension it is more comfortable than its rivals, almost gliding along the road and only registering sharp bumps and potholes.

Interior and Equipment

The Audi A4 traces its origins back to the Audi 80, first launched in 1972, and the 2015 model is the ninth-generation of mid-size Audi saloon.

Rather like the exterior, what the interior lacks in excitement, it more than makes up for in quality. Materials look and feel great, every control is precise and good to use and all the displays are crystal clear. It takes interiors in the sector to a new level and its engineering and refinement shame some models from the larger executive and luxury class. With infotainment such a priority for Audi, even the first rung SE trim gets a seven-inch screen with the ability to run Apple CarPlay and Android Auto if you connect your smartphone. There’s also three-zone climate control, rear parking sensors and Audi Drive Select, with different driving modes. Move up to Sport and you’ll add Audi’s own sat-nav, sports seats, enhanced speakers and a three-spoke steering wheel. The range-topping S line brings LED headlights and rear lights with sweeping indicators, 18-inch alloys, sports suspension and styling upgrades inside and out. It’s more spacious too, with 24mm more headroom and 23mm more rear passenger legroom. The boot has also grown to 480 litres, matching its German rivals, and beating the 455 litres found in the Jaguar XE.

Cost

The 2.0-litre TDI 150 ultra manages 74.3mpg, exceeding the 68.9mpg of the BMW 320d

The A4 starts from £25,900 for the 1.4-litre TFSI SE model, putting it in close contention with the £24,975 BMW 318i SE, which has less standard kit. Further up the range, the A4 2.0-litre TDI ultra 190 Sport should prove popular, and costing £31,000 it slightly undercuts the Mercedes C220d Sport at £32,170. But, even more important than purchase price, are running costs, and here the A4 excels. The 2.0-litre TDI 150 ultra manages 74.3mpg, exceeding the 68.9mpg of the BMW 320d and only just falling shy of the 75mpg managed by the XE 2.0 i4 163 diesel. For company car drivers this model, with its low BIK rating, will make most sense. But, the 2.0-litre diesel is still very frugal and even the 3.0-litre TDI with 215bhp returns 61.4mpg.

Our Verdict

To our minds it feels as if Audi has found its strengths in this sector – technology, quality, refinement and efficiency – and turned up the dial on them to 11. The interior is stunning for a car with a starting price under £30k, the infotainment system is bristling with the latest tech and the A4 boasts running costs sure to put a smile on the face of company car drivers. Fundamentally, it’s still not quite as fun to drive as a 3 Series or Jaguar XE, but the latest Audi has leapfrogged the C-Class in terms of refinement and comfort.