AUDI has lifted the wraps on the third generation TT and fiery TTS Coupe models at the Geneva Motor Show.

The cars have been redesigned from the ground up to deliver much improved performance and better efficiency, while also heralding innovations like the prestige brand's new all-digital cockpit.

That said, the TT also features a retro feel reminiscent of the original model from 1998 - reinterpreting several ideas along the way.

Styling wise, the car's front end has a broad, flat grille and the four Audi rings now sit centrally on the hood, like with the R8 supercar.

Audi says the headlights will also be available as an option with LEDs or its new Matrix LED technology, where controllable individual light-emitting diodes generate the main beam.

And the rear lights remain permanently on - another Audi innovation - and all versions will have two large, round exhaust tailpipes. But like all Audi S models, the TTS will come with four tailpipes.

Inside, the cabin design is such that its ‘styling is so light it almost seems to float' while the dashboard is described as resembling the wing of an aircraft.

The round air vents, a classic TT feature, have a turbine-like look and incorporate the air-con controls, and the central MMI monitor is replaced by the Audi virtual cockpit.

The standard sports seats come with integrated head restraints and are positioned lower than their predecessors in the outgoing model, as well as being 5kg lighter.

Audi says the TT will prove a sports car suitable for everyday use too. Its load area now has a capacity of 305 litres, which is 13 litres more than before, and can be extended by folding the rear seat backrests forward.

At launch towards the end of this year, the new TT and TTS will be available with three four-cylinder engines featuring turbocharging and direct injection with power outputs ranging from 184PS to 310PS.

The 2.0 TDI, with a manual gearbox and front-wheel drive, can accelerate from 0-62mph in 7.2 seconds and reach a top speed of 146mph, yet is also good for up to 67.2mpg and has CO2 emissions of 110g/km, a new record low level in the sports car world.

Prices will be announced at a later date.