Audi's new S4 will cost from £34,225 when it goes on sale in April next year.
That's more than £1000 cheaper than its main rival, the BMW 335i M Sport.
Prices for the estate Avant version will start from £35,570.
Buyers can also specify a new seven-speed twin-clutch DSG transmission, which costs an additional £1420 in the saloon and £1230 in the estate.
The S4 is powered by Audi's new 3.0-litre 329bhp V6 engine, which replaces the outgoing 4.2-litre V8.
The V6 is cleaner and more efficient than the unit it replaces, returning an average 29.1mpg. It's also faster, going from 0-62mph in 5.1 seconds.
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