Audi is mulling the launch of the A3 model car in India.  The A3 is smaller than the A4 which is a C class sized car.  All the German automakers are considering their smaller car models for India where size in terms of compactness will play a big role in eligibility for tax rebates and also the consumer preference.  Small cars are easier to park and manoeuvre in cities which are increasingly plagued by burgeoning traffic.