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It was first debuted at the 2007 Tokyo Motor Show as Audi metroproject quattro concept car which had four seats and features a hybrid powertrain. The car carrying a 1.4-litre Turbo FSI engine was capable of generating 148 bhp. The concept car was able to run 100 km/h on single charge of the lithium battery and consumes less fuel by up to 15%.

Audi again displayed the metro project quattro concept at the Leipzig Auto Mobil International show 2008 with the name A1 project Quattro designed by its AG Project Designer Dany Garand. The restyled car was then unveiled at the Paris Motor Show in October 2008 and re-named as A1 Sportback concept. This time the car saw some changes in the build in terms of length. It was 5-door car with the same hybrid powertrain of 1.4 L petrol engine and electric motor. But the electric motor drives the front wheels instead of the rear.

It is speculated that it carries slight resemblance with the Fiat 500. The C-pillar that is the 3rd supporting pillar or the roof lines of the car body is similar to a coupe, whereas the front fascia sports the bold and sturdy looks with arresting grille design like that of Audi models today. The rear or the back of the car is described as most appealing part which is adorned with tail lamps, large bumpers, twin exhaust pipes, and the integrated spoiler in the rear window. The three-dimensional main headlights with LED technology are the attractive part of the exterior. It has all the light functions like the low beam and high-beam headlights, daytime running lights, and turn indicators housed in one centre position. There is also speculation that the A1 will also be available with Audi’s ‘quattro’ 4WD driveline. But the possibility is low as this concept is little expensive and will not match a low budget car.

The interior is comfortable and is well sufficient for a family of four. The seating is comfortable with optional leather seating and the drivers’ seat with electric adjustment. The rear seating comes with split seating just like the old models of the WagonR. The instrumentation and the centre console carry simple design and the dash integrated music system matches the interiors.

The sophisticated chassis design comprising McPherson front suspension and four-link independent rear suspension help to achieve outstanding driving safety and handling dynamics. The ESP-controlled front differential lock ensures enhanced steering precision and directional stability as well as improved traction and handling when cornering. The electromechanical steering with speed-sensitive power assistance gives balanced handling.

Under the hood, it is expected to carry VW’s unique "Twincharger" 1.4-liter Quattro engine that produces 148 bhp. Some even speculate that it will be fitted with a 1.2-litre engine. The TFSI engine and electric motor will work simultaneously to generate impressive power. The electric motor will be emission free and will run up to 100km/h. The versions of Audi A1 is not yet confirmed some sources say that initially it will be a four hatch which could be later added with a two-door hatchback.