or signup to continue reading For nearly two decades, the has been the quintessential compact performance car for those wanting a hot hatch without the stigma of the 'boy racer' tag. Over four generations Audi has refined the S3 formula, gradually making it more mature and leaving the full-blown craziness to the flagship – which is due to arrive in all of its facelifted five-cylinder glory later this year. As part of the fourth-generation mid-life facelift, the S3 Sportback and Sedan were treated to arguably the most significant upgrade of the lot.
More grunt and a litany of under-the-skin performance upgrades make this the quickest and most focused S3 ever, fully removing it from the shadow of its Volkswagen Golf R cousin. Headlining the developments are more power and torque (+17kW/20Nm), while a new rear torque-splitting differential, a reworked front-end delivering better handling, and increased standard equipment also form part of the new package. There are also new options for those looking to further personalise their vehicle, including new exterior colours and alloy wheels, a new Launch Edition package, and the option of a titanium performance exhaust from Akrapovic – which costs a whopping $9900! Long story short, the changes have helped the new S3 retain the title of the most well-rounded of the premium compact hot hatches, despite remaining thousands of dollars cheaper than rivals from BMW and Mercedes-AMG.
Prices are up, however, and in the grand scheme of things the latest S3 ain't all that 'cheap' given you can get the very same mechanical package in a Golf R for a lot less. Is it worth it? We headed to Cairns in far north Queensland for the national media launch to find out. Pricing is up for the 2025 model year, and the S3 Sedan – like its A3 Sedan counterpart – commands a premium over its Sportback sibling.
With the new A3 scoring the S line interior package as standard, the visual differences between the A3 and S3 inside the cabin aren't quite as distinct as you might expect. At first glance you might not know whether you're in the driver's seat of an S3 or a highly-optioned A3, but as is the Audi way there are subtle enhancements for the ' crowd. The most obvious change is the seats, which are finished in 'Fine Nappa' leather with diamond contrast stitching, and they're augmented by more subtle dinamica suede trim inlays and a red-ringed starter button.
Unlike the A3, the S3 gets full electric adjustment for the front seats as standard, including four-way lumbar, with memory presets included as part of the optional Premium Plus Package ($3300). Dig deeper and you'll fine unique performance displays for the 12.3-inch Audi virtual cockpit (digital instrument cluster), namely the line-bar tachometer, as well as a colour ambient lighting package with trick illuminated fabric panels in the doors.
While there aren't really any wholesale changes to the base A3's interior architecture or fitout, the core principles that make Audi's small car's interior great – and great – remain here. The key touch points are rather lovely, notably the Nappa leather-trimmed seats and steering wheel, as are the crisp and snappy displays. Still, the clicky haptic feedback on Audi's 10.
1-inch MMI touch display is among the most user-friendly, and the multimedia system's clean interface is very easy to get to grips with. Tactility of the switchgear is likewise clicky and satisfying, and Audi unlike its VW Group family members the S3 has retained a physical pod for climate controls. No fiddly touch sliders or touch capacitive controls here.
Audi's digital driver's display also remains a benchmark, with a heap of configurable layouts and menus, as well as a number of different styles for the tacho and speedo. The Google Maps integration, as well as the ability to project turn-by-turn prompts from Apple Maps or Google Maps from your smartphone, is also beaut. But the not-so-good is here too, like some scratchier plastics on the mid and lower sections of the cabin that are less excusable at the A3's price point, let alone the S3's.
Further, the e-tron GT-inspired shift-by-wire gear selector isn't particularly sporty compared to the old Porsche 911-style toggle. At least there's a good amount of storage for your odds and ends, whether you're a young singleton like me or a family guy/girl with a couple of kiddies. There's a pair of toothed cupholders between the front seats, a handy shelf ahead of the shifter housing a wireless phone charging pad, and big door bins for bottles.
You get a cubby under the front-centre armrest, too. Rear seat accommodation is much like the A3 on which the S3 is based, meaning there are minimal changes in the second row, the main change being the updated upholstery and the addition of a third zone of climate control – oddly something the A3 previously lacked compared to the Golf, Leon and Octavia. Rear seat accommodation is fine.
I'm a little over 6'1′′ and can fit behind my own driving position relatively comfortably, but any taller people in either row could be a squeeze. Worth noting is the S3 Sedan's slightly tapered roofline compared to the S3 Sportback. The bulkier Sport seats with integrated head restraints up front also make forward visibility from the rear more limited.
There's also a big driveline hump in the centre to allow for the quattro all-wheel drive hardware in some variants, so middle seat riders will have to share the tighter footwells either side. Kids and average-sized adults will be fine in the rear, though like most smaller cars the S3 is best seen as a 4+1-seater. Amenities include a fold-down armrest with cupholders, the aforementioned third zone of climate control with directional vents, a pair of USB-C charge ports, bottle holders in the doors, and net-type pockets behind the front seats.
Further, you get the requisite ISOFIX and top-tether child seat anchor points in the rear for the littlest ones. While the A3 Sedan offers a cargo capacity advantage over the Sportback, the S3's all-wheel drive hardware under the boot floor means the S3 Sedan quotes the same 325 litres as the Sportback in five-seat form. Also unlike the A3, the S3 removes the space-saver spare wheel in favour of a tyre repair kit.
The S3 retains the VW Group's 'EA888' 2.0-litre TFSI four-cylinder turbocharged petrol engine, but it's now more powerful and torquier to match the 245kW/420Nm outputs of the latest Golf R. While the base engine unit is the same, Audi has applied a number of changes such as a preloaded turbocharger which offers better response, tweaks to the ECU, and a new Dynamic plus drive mode.
It's also worth noting our indicated fuel consumption figure was achieved over a spirited drive loop that was largely uphill, which isn't really representative of real-world conditions. Having driven the pre-facelift S3 at its Australian launch a few of years ago, it's clear to me that this is a pretty different beast. The old car was hardly 'soft', but it was definitely more GT than outright corner-carver.
And it had the added issue of being less powerful and less athletic than its Golf R cousin. But that's all changed with this updated model, with Audi applying a number of changes drawn from the Golf R and RS3 to make this a proper sleeper-spec weapon. Audi has reworked the front and rear axles of the new S3 to make it sharper, including new pivot bearings with double the wheel camber up front (now 1.
5 degrees), stiffer front wishbone bearings and a revised tune for the progressive steering system. There are bigger 357mm front brakes with new pads as well. At the rear, the RS3's rear torque splitter is now standard in place of the old Haldex clutch, offering fully variable torque distribution between the rear wheels – with clutch packs on either side, the S3 can send up to 100 per cent of rear axle torque (which is up to 50 per cent of the overall front-rear torque split) to either wheel.
It all comes together really wheel on tight, twisty sections of road like the hillclimb from Cairns to Lake Barrine. The old S3 was already a fast and fun car on a winding B-road, but this new model takes it to another level. There's unflappable grip from the quattro all-wheel drive system, and the S3 puts all its grunt down without breaking a sweat.
I'd like a bit more feel from the steering, even if the variable-ratio rack is a fairly quick and accurate system, but in seemingly typical Audi fashion it's a little light-on for feedback for a car like this. The standard sports exhaust is a little more muted than I remember – potentially a victim of ever-tightening emissions and sound regulations in Europe – but in sportier settings you get the odd pop on upshifts and overrun when you let off the throttle between 3000 and 4000rpm. Play around with the settings – which I wish there was quick access to on the steering wheel – you'll find a new 'dynamic plus' mode that basically turns everything up to 11.
There's a faster for improved off-the-line performance, humming at 1350rpm when you're at a standstill. There's also even sharper throttle response, and 'dynamic cornering' with that aforementioned rear torque splitter channelling more torque to the outside rear wheel, while the ESC sport mode allows a little more play, and the muffler valves are open all the time – regardless of whether you have the standard exhaust or the optional $10k titanium performance exhaust. I wouldn't use this mode unless you're really having a crack because it makes the S3 incredibly sensitive to inputs, but it will certainly make you question whether you that RS3 given the S3 is already so darn good.
Really, beyond the added pace you'll rarely use, and that distinctive five-cylinder engine note of the RS3, I reckon the new S3 is more than capable on any road and has plenty of talent to tear up the occasional track day. The S3 is also really well suited to daily driving, more so than the RS3. Typically, Audi S products are better daily drivers whereas the RS models are more suited to regular track use.
Pop the Audi drive select system into 'auto' or 'comfort' and the S3 drives very much like an A3 but with more power and traction. Its 420Nm of torque makes for smooth and effortless progress in normal driving, and the comfort mode is actually quite comfortable. Road and wind noise is fairly well suppressed, but the large wheels and low-profile tyres transmit a little more audible feedback from the blacktop than the standard A3's wheel and tyre package.
Thankfully, the beefed up Sonos 16-speaker premium audio very easily drowns out unwanted noise with its deep and clear sound quality. As you'd expect from an Audi, the suite of driver assists are quite good too. The full gamut of safety systems are fitted as standard, headlined by adaptive cruise assist which combines active cruise control and lane centring to allow intuitive and user-friendly semi-autonomous highway driving.
Blind-spot monitoring and rear cross-traffic assist make merging into traffic or reversing out of tight spaces that little bit easier, while the reversing camera is supplemented by front and rear parking sensors as well as a semi-autonomous park assist – which can steer the S3 into both parallel and perpendicular parking spaces. Audi has confirmed a surround-view camera will become standard equipment from April production, so any orders placed from now will get even better all-round visibility. The S3 builds on the A3 S line's specification with a number of aesthetic and convenience additions.
Like the A3, the S3 Sportback and Sedan are available with a number of packages and single-item options. The new Audi A3 will retain the five-star ANCAP safety rating of its predecessor, based on Euro NCAP tests conducted in 2020 – though the S3 is currently unrated. The S3 is covered by the same five-year warranty as the wider Audi lineup.
Over and above the standard ownership provisions, there's an available Audi Advantage Package which extends the warranty by two years (up to seven years), in addition to two years of scheduled servicing (added to the end of any existing service plan) and roadside assistance – this costs $3250 for both A3 and S3 buyers. Customers also receive a complimentary membership to Audi Experience for the duration of their warranty period, which offers access to "exclusive national events, intimate Audi Ambassador experiences and premium partner offers". Audi has addressed one of the key complaints of the S3, which may make you now think twice about that Golf R or whether you need to step up to the RS3.
Now blessed with a full-fat drivetrain and some trick chassis technology to boot, the new Audi S3 is a complete premium performance package tailored for everyday use. It's faster and sharper than before, yet continues to present Audi's restrained and refined design inside and out, for those not interested in conspicuous wings and aero flics. While prices are up, the S3 is still thousands cheaper than both the BMW M135 and M235, let alone the even dearer Mercedes-AMG A35 and CLA35.
I'd also argue that, despite this, the Audi S3 is the most well-rounded of these premium performance options both in terms of the driving experience and specification. That's not to say it's perfect, though. While its mechanical package now matches its Golf R relative, the S3 Sportback is $8000 pricier than the VW, and the S3 Sedan is some $10,000 more expensive.
While the Audi's more premium design and appointments go some way to justifying that extra spend, it's not much better objectively. Indeed I'd go as far as saying there are some cheap-feeling cabin trimmings that simply don't feel up to scratch in the A3, let alone the S3. Considering Cupra is really dressing up the interior of its related Leon with its mid-life facelift, it makes you wonder why Audi didn't put in more effort.
Still, Audi's intuitive tech integration and tactile switchgear is a cut above its VW Group stablemates, and within the context of premium-badged rivals it doesn't feel noticeably cheaper by any great measure. And some of the more expensive AMG models are likewise criticised for their plasticky interiors. Yes, the Audi is my pick over alternatives from BMW and Mercedes-Benz, but my advice is to go easy on the options.
You can very easily send the S3 into six-figure territory if you tick too many boxes, which is an insane amount of cash for any compact car – and the Premium Plus Package gives you all you really anyway. Sedan or Sportback? That's more or less a question of personal taste, but personally I prefer the cheaper hatch in this current generation, especially in sportier S3 guise. Content originally sourced from: Advertisement Sign up for our newsletter to stay up to date.
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2025 Audi S3 Sedan review

Audi's junior S model is sharper, yet as grown-up as ever. For those wanting a premium compact Q-car, it's the best of the breed.