COMPACT cracker the Audi A3 has been named 2014 World Car of the Year.

It is the second overall title for the German brand in the 10-year history of the awards, as the A6 claimed the inaugural crown in 2005.

The A3 saw off the challenge from an initial entry list of 24 vehicles, then a shortlist of a dozen, then three finalists - the BMW 4 Series, the Mazda3 and the Audi itself.

Audi has now won a total of seven times at the awards, having also collected three World Performance Car titles in 2010, 2008 and 2007, and two World Car Design of the Year titles in 2008 and 2007.

According to the judging panel: "It might borrow styling hints from its bigger brothers, but the A3 still offers classic, chiseled contours and even better interior trim levels.

"With a superb choice of engines and four body styles, the A3 range packs a hefty premium punch in the small luxury segment. Audi should be complimented for making this A3 ride like no other A3. All the old shimmer over rough surfaces have gone, replaced by a silky smooth ride that approaches limousine quality".

To be eligible for the overall World Car award, the candidates must become available for sale on at least two continents during the period beginning January 1, 2013, and ending May 31, 2014.

Vehicles are selected and voted on by an international panel comprising 69 automotive journalists from 22 countries.

Previous World Car of the Year winners are the Volkswagen Golf, the Volkswagen up! in 2012, the Nissan Leaf in 2011, the Volkswagen Polo in 2010, Volkswagen Golf in 2009, the Mazda2 / Mazda Demio in 2008, the Lexus LS460 in 2007, the BMW 3-Series in 2006 and the Audi A6 in 2005.

The new Audi A3 is available in the UK as a three-door, Sportback, Cabriolet and Saloon and is powered by a range of TFSI petrol and TDI diesel engines.

Later this year, the A3 Sportback will also be available as an e‑tron, whose plug‑in hybrid drive enables journeys of up to 31 miles in all-electric mode.