IT MAY HAVE skipped the Frankfurt Motor Show last month, but as these new spy photos reveal, development of the Audi A1 compact hatch is well under way.

Borrowing from the Volkswagen catalogue, the A1 is expected to arrive with a range of TSI petrol and TDI diesel power plants, ranging in size from 1.4 to 2.0 litres.

Drive will likely be channelled to the front wheels via a seven-speed DSG transmission, with quattro all-wheel-drive high-performance variants are expected to join the range after the initial launch.

Full scale production for Europe is scheduled to begin in October. Launching the A1 range in the US, where it was previously deemed too small, is also under consideration.

The 2011 Audi A1 will reportedly arrive in three and five-door (or Sportback) forms with conventional internal combustion motivation.

Also rumoured to be under development are hybrid and electric versions of the car, although the timing for these is still unknown.

While the A1 is a strong contender to reach Australia, the hungry European market will most likely be catered to first, before a launch schedule is locked in here.

GALLERY » 2011 Audi A1 Spy Photos

GALLERY » 2011 Audi A1 Three-Door Preview

GALLERY » 2011 Audi A1 Sportback Concept