Compact executive sector model launches will allow prestige brands to challenge volume carmakers, said Audi UK director Kevin Rose at the UK launch of the latest A4.

At the new £4m Whetstone Audi dealership in north London (left), Mr Rose said lower prices from prestige brands made it was "easier for people to move up" from volume brands. Recent percentage-based price cuts had left transaction prices closer.

"If the contract hire rates are only a few pounds apart, customer will start asking whether they should stick with a Vectra V6 or have an Audi," he said. "With the A4, the C-class, the Volvo S60 and the new baby Jaguar, all the growth and excitement is around the premium brands."