Audi will not only be displaying its all-new A1 minicar at October’s Tokyo Motor Show but it will also unveil its new hybrid drive system. Targeted at premium small cars such as BMW’s Mini, the new A1 will come as a three-door hatch and be priced less than €20,000 when it goes on sale in 2010.

Production of the new minicar will top 100,000 units per year and it may be joined by a new 'shooting brake' mini-estate, a drop-top roadster and possibly a new Q1 mini-SUV, reports Auto Motor und Sport. The source also told that a mild hybrid option will be available as well as more conventional TSI and FSI petrol engines and TDI diesels.

This rendering gives us a preview as to what the final version may look likes and shows that designers are going with conventional hatchback styling and will incorporate Audi's familiar oversized grille.

Sister brand Volkswagen, meanwhile, will showcase its own minicar concept at next month’s Frankfurt Motor Show. The VW car will be built on a new low cost platform and will feature a rear-engined RWD layout and is expected to be sold in emerging markets for under €8,000.