WHAT an entrance! The first venture by Mercedes-Benz into hot-hatch territory is akin to King Kong smashing through the wall that protected the hapless natives of Skull Island.

Traditional AMG models have been big, brash and brutish in their performance delivery. In the case of the A 45 AMG model, Mercedes has created a finger-burning hot hatch, thanks largely to the class-busting 360bhp produced by its 2-litre fourcylinder turbo engine.

That’s no misprint. I can’t think of any other hot hatch having anywhere near that sort of power.

And in reality it’s much more than just a hot hatch on steroids.

Having said that, your eye is immediately drawn to the new AMG grille, deep front splitter, gloss black sill extensions at the side and bespoke exhaust system that give a whopping hint of what’s on offer.

As is the case with every AMG car, you buy into the the culture of the hand-built engine plus the numerous bespoke set-up and tuning modifications. This four-cylinder engine is a first for the AMG division – the norm is six cylinders – but certainly has AMG pedigree. It has the highest specific output for any production car in the world.

The A 45 boasts an intelligent allwheel drive system called 4Matic that directs power to where you need it most. That’s a reassuring addition when you are behind the wheel of a motor that can sprint from rest to 62mph in 4.6 seconds.

With all the engine’s power comes control. Alongside the car’s intelligent all-wheel drive system is a three-stage ESP set-up. Aside from the default ‘On’ mode, there’s a second setting giving the driver some leeway before kicking in, with a third ‘Off’ mode promoted as a trackday setting.

Rounding off the powertrain tour is a version of Mercedes’ existing double clutch gearbox. This sevenspeed DSG-style gearbox can be left in auto or switched to a more responsive Sport mode, while paddleshifters behind the steering wheel give the driver control in manual mode.

Figure-hugging Recaro sports seats greet driver and passenger when you open the door, and from the sports-themed trim in the cabin, pictured below, it’s clear that Mercedes isn’t shy in promoting the A 45’s performance potential. Racy red coloured trim and lots of faux carbon fibre are the giveaways.

The real thrill comes from driving the A 45. The car’s deep exhaust note lets you know what’s in store, and yet this car is very easy to live with as a regular hatchback.

It’s very quick, and the soundtrack encourages spirited driving through the car’s direct steering.

Switch to the gearbox’s Sport mode and gearchanges are noticeably quicker, plus you’re accompanied by AMG’s trademark barking, backfiring and bellowing exhaust note. The sports exhaust experience is a must, and the aural rewards are impressive considering you’re in a car with half the normal AMG-tuned cylinder count.

On a demanding A-road with a good mix of corners, elevation changes and the usual smattering of surface imperfections, the A 45 does an impressive job of remaining settled despite the challenging terrain and your various inputs. The car’s steering delivers enough weight and feel to inspire confidence, while putting 360bhp down isn’t as scary as it sounds.

Despite the presence of an allwheel drive system, in reality the A 45 bias remains largely front-driven.

Although there’s no obvious rearwheel drive bias at any time, power to the back wheels – up to 50 per cent if needed – comes in smoothly to counter any slippage detected up front. Just don’t expect lary tail-out adventures of the likes associated with a V8-powered E-Class.

The result of this feisty, compact package is a driving experience akin to a GTI on steroids when you’re pushing hard, and a brisk drive in a plush A-Class when you’re not. This is performance car motoring in an era of downsizing, although with the A 45 it’s a size and not a cost thing.

You’re still paying German sports saloon money, but the wrapper has a more youthful angle – something Mercedes is keen to exploit as it seeks to encourage more people on to the AMG ladder.

The price tag of £37,845 might seem expensive when compared with the BMW 135I, but Mercedes reckons that you get a lot more kit for your money when comparisons are made.

What comes as a big surprise is the fuel economy – topping 40mpg if you don’t get carried away with the accelerator pedal.

While you still have access to a wealth of safety and creature comfort equipment in true Mercedes style, the A 45 promises a more accessible and affordable route into AMG ownership, which rose by 119 per cent her in the UK last year compared with 2011 sales.

It successfully balances practicality with manic performance, allowing you to choose exactly how much of the latter you wish to experience.

And after your first helping of the car’s bellowing exhaust note, you’ll regularly be back for more.

Surprisingly the A45, like the regular A-Class, is available only as a five-door – a clear indication that Mercedes sees this car as a very fast, very special alternative to a regular family hatchback.

Best in its class? For sure, even though the price will make you squirm.

Mercedes-Benz A 45 AMG

PRICE: from £37,845
ENGINE: 2.0-litre turbo petrol unit developing 360bhp
TRANSMISSION: sevenspeed dual clutch transmission, driving all four wheels
PERFORMANCE: maximum speed 155mph, 0-62mph 4.6 seconds
ECONOMY: 40.9mpg CO2 RATING: 161g/km