A new low-tax Audi A4 has been launched.

The new Audi A4 TDI 120PS model emits just 134g/km of CO2. That puts it in the 18% band for company car tax, the lowest possible for a diesel car in the standard tax bands.

The new A4 TDI 120PS will keep fuel bills low, too. Combined economy is 55.4mpg in saloon guise. It is also available as an A4 Avant estate.

The A4 TDI 120PS comes with a six-speed manual gearbox. Its 2.0-litre turbodiesel engine generates 118bhp (120PS) and 214lb ft of pulling muscle. That gives the saloon 127mph performance and a 0-62mph time of 10.7 seconds.

The A4 TDI 120PS is available in standard, SE and S line specifications. Prices run from £22,150 to £26,550.

Deliveries of the new low-tax A4 will start in mid-July, the same time that a new high-torque Audi A4 2.0 TFSI arrives.

The new 208bhp 2.0 TFSI petrol Audi A4 delivers 258lb ft of torque. In saloon form, it combines 155mph performance with 42.8mpg combined economy. It dispatches the 0-62mph dash in 6.9 seconds. CO2 emissions are 154g/km.

The high-torque Audi A4 2.0 TFSI is available in saloon and Avant body styles, with front or quattro four-wheel drive. Prices: £24,625-£29.700.

Audi A4 120PS vital statistics

• Model Audi A4 2.0 TDI 120PS
• Combined economy 55.4mpg
• CO2 emissions 134g/km
• Company car tax 18% band
• Top speed 127mph
• 0-62mph 10.7 seconds
• Price £22,150-£26,550