Audi to launch luxury diesel V8

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The UK’s first V8 diesel-powered luxury car, the Audi A8 TDi, will go on sale in July.

The A8 TDi will sit alongside the V8 petrol models that launch the range in May.

Prices are yet to be confirmed, but the 4.0-litre TDi should cost about £55,000, the same as the 4.2-litre V8 petrol version. That would make the car considerably more expensive than the Mercedes S320 CDi (£47,645) and the BMW 730d (£44,555).

The TDi will have a more powerful engine than its two rivals, with 270bhp and 479lb ft of low-rev pull compared to the Merc’s 204bhp and 368lb ft and the BMW’s 218bhp and 368lb ft. That makes the A8 up to 1.2 seconds faster to 60mph, with a time of 6.7 seconds.

Combined fuel economy on the Audi drops to 28.8mpg compared to 35.8mpg on the S-class and 33.2mpg on the 7-series. The A8 also sits in the most expensive 35% company car tax band – 8% more than the S320 CDi and 3% over the BMW.

Allied to its bigger price tag, the A8 will cost higher-rate taxpayers about £2500 more than a Mercedes in tax each year, with a bill of around £7674.

Two 3.0-litre petrol and diesel models will arrive before the end of the year, while a flagship W12 will reach the UK in early 2004. A high-performance S8 is planned for 2005.