Audi has announced US pricing for the 2016 A3 Sportback e-tron plug-in hybrid, the first of many Audi e-tron models to arrive in North America. As you might expect, it doesn’t come cheap.

Arriving at dealerships across the States in October, the base Premium model starts from $37,900, excluding a $925 destination charge. However, customers may qualify for applicable state and federal incentives and tax credits.

Audi says the A3 Sportback e-tron qualifies for a federal tax credit of $4,168, with additional incentives offered in some states.

The 2016 Audi A3 Sportback e-tron pairs a 1.4-liter TFSI turbocharged four-cylinder gasoline engine with a six-speed S tronic transmission and a liquid-cooled, permanent magnet-driven electric motor for a total system output of 204hp and 258lb-ft (350Nm) of torque.

The electric motor is fed by an 8.8-kWh lithium-ion battery pack packaged beneath the rear seat, allowing for a fully-usable trunk. The battery can be recharged in about 2 hours and 15 minutes using a 240-volt outlet or in approximately 8 hours through a 120-volt outlet.

The 2016 Audi A3 Sportback e-tron offers four driving modes. In EV mode the vehicle is powered only by the electric motor, while Hybrid mode allows the car to select the most efficient power source – either EV, Hybrid or gasoline. There’s also the Hold Battery mode, which allows hybrid driving while preserving EV range for later use, and Charge Battery mode, which uses the gasoline engine to recharge the battery while driving at highway speed.

Audi hasn’t announced fuel economy and driving range for the US-spec A3 Sportback e-tron, but in Europe the model is rated at 1.5 l/100 km (156.8 US mpg), with CO2 emissions of 35 grams per kilometer (according to the NEDC standard for plug-in hybrid vehicles). The vehicle has an all-electric driving range of 50 kilometers (31 miles) and can cover more than 900 kilometers (559 miles) in combined mode.

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