INSTANTLY recognisable, the Audi TT is now in its third generation.

The original TT was a sensation when it arrived back in 1998 and the second generation model also sold in large numbers.

The coupe is so popular in the UK that more are sold here even than in its native Germany - its second largest market.

The new TT sits on the VW group's excellent MQB platform and as a result is lighter and even better to drive.

Style changes are evolutionary rather than radical and the iconic shape has been modernised but all the popular styling cues have been retained.

This means that from the outside the new TT looks very familiar but it is a different story inside the superb cabin.

Beautifully designed and crafted the Virtual Cockpit system is a digital delight and Audi describes the newcomer as an ‘automotive supercomputer meets state of the art sports car'.

Two spec levels - Sport and S line - are currently offered and both come with the virtual cockpit.

It is based around a 12.3-inch, high resolution LCD display that completely fills the driver's instrument binnacle and replaces the traditional analogue dials.

Drivers can choose between two display modes - a classic view with the speedo and rev counter in the foreground or an "infotainment" mode where the virtual instruments are reduced in size.

The freed up space provides room for functions like the navigation map while the lower edge displays outside temperature, time, mileage and warning or info symbols.

The screen itself is crystal clear and a foot wide. Telephone, media, trip and car settings functions all appear on the screen and can be operated from the MMI controller or from the multi-function steering wheel.

An optional Technology Package adds navigation with Google Maps, traffic information, music streaming and internet access - it really is amazing. It is so flexible that dealers can update the software at any time.

All cars come with DAB radio, climate control and leather seats and the other controls are just as exciting and well thought out. Three central circular air vents feature the air conditioning controls, while the outer two at the doors house the controls for the optional heated seats.

You certainly won't get bored inside the TT and as a bonus luggage space is also slightly increased to 305 litres or 712 litres with the rear seats folded.

The rear seats are still only suitable for very small children but will be used mainly as a parcel shelf by most owners.

Two engines are available at the moment.  The 2.0-litre diesel TT ultra version is capable of 67.3mpg with CO2 emissions of just 110g/km and can reach 62mph in 7.1 seconds and top out at 150mph.

The test car came with the 2.0-litre TFSI petrol unit which is punchy and smooth. It was mated to the revised quattro drivetrain with an S tronic gearbox which gets it to 62mph in only 5.3 seconds.

The all-wheel-drive system means that this TT offers great agility and superb grip even in foul weather.

The steering is sharp and positive and Audi's Drive Select system allows you to choose from a selection of driving modes.

A faster range-topping TTS model boasting 305bhp will arrive soon for owners who want even more performance.

Sharp looks and a sublime cabin mean the TT is still at the top of its game and prices of the new range start at £29,770, while the car I drove  in quattro S line S tronic form cost £34,540.