The Audi A3 was chosen from an initial entry list of 24 vehicles from all over the world, then a shortlist of 12, then three finalists: the BMW 4 Series, the Mazda 3 and the Audi A3.
To be eligible for the overall World Car award, the candidates must become available for sale on at least two continents during the period beginning January 1, 2013 and ending May 31, 2014.
Rupert Stadler, Chairman of the Board of Management of AUDI AG, said: "The Audi A6 was the first ever winner of this award and we are delighted that the Audi A3 has repeated that achievement by being voted 2014 World Car of the Year.
"The Audi A3 showcases Audi's technical competence in all aspects of carmaking, not least in the areas of lightweight technology, drivetrain, mobile infotainment and driver assistance systems.
"This major award win is an achievement that the whole company can celebrate."
In 2013, the Audi Group delivered around 1,575,500 cars to customers.
In 2013, the company achieved revenue of €49.9bn and an operating profit of €5.03bn.
The Audi Group is globally present in more than 100 markets and produces vehicles in Ingolstadt and Neckarsulm (Germany), Gyor (Hungary), Brussels (Belgium), Bratislava (Slovakia), Martorell (Spain), Kaluga (Russia), Aurangabad (India), Changchun (China) and Jakarta (Indonesia).