Why does the Audi A1's engine have a larger displacement despite being a smaller car?

I've noticed that the Audi A1 has a 1.4L engine while other cars in its class have smaller engines, even though it's a smaller car overall. Can someone explain the reasoning behind this?

Yes, the Audi A1's 1.4L engine might seem bigger than other cars in its class, but it has been specifically designed to have a higher power output and better fuel efficiency. The engine's larger displacement allows for better combustion and thus, increased performance.