Why does the Audi A3 have a lower price point compared to other luxury sedans?

I've noticed that the Audi A3 has a lower price point compared to other luxury sedans in the market. What are the reasons for this and what are the potential drawbacks of opting for a more affordable option?

The lower price of the Audi A3 can be attributed to its smaller size and engine capacity, making it a more compact and efficient option compared to its larger counterparts. However, this may also result in a slightly less spacious interior and slightly lower performance capabilities.