It seems the top brass at Audi might have been indulging in the mulled wine this year, because they've unveiled the maddest small hatchback to hit the market since the Renaultsport Clio V6.

Dubbed the A1 quattro, this little pocket rocket is powered by a 252bhp four-cylinder turbocharged engine that makes it faster than a manual S3. Which, in a car the size of a cereal box, is a fantastic piece of festive season lunacy.

There will only be 333 units made worldwide and there's no word on price yet, but unfortunately they will all be left-hand-drive. The huge power will be controlled by a four-wheel drive system that cuts in when the front wheels, which usually operate alone, start to lose grip.

A manual gearbox completes a package that should be as entertaining as it is rapid. Quoted figures include 0-62mph in 5.7 seconds and a top speed of 152mph. A huge turbocharged in-gear punch is guaranteed by 258lb.ft, available between 2,500 and 4,500rpm.

The colour scheme may divide opinion but it's also non-negotiable. The white 18-inch wheels ape those of the old rally-era quattro cars, and there are two 10cm exhaust pipes.

Inside, the trim is all black, including very attractive leather seats with red stitching. Red painted `wings' also feature in the headlight clusters as part of a package of exterior changes that set the A1 quattro apart from other A1s.

Different bumpers, a modified grille, the very obvious two-tone rear spoiler and rear diffuser are among the features new to the A1 range in this car. Others include white needles, a red-faced speedometer, a quattro logo and a colour Driver's Information System (DIS).

Whether it's really as mad as it seems remains to be seen, but it looks promising.