2026 Audi S3 Sportback review

The current-generation Audi S3 got the rough end of the stick when it arrived in Australian showrooms in 2021.

It remained more expensive than its Volkswagen Golf R sibling, but for the first time in a decade as twins under the skin, it used a less powerful version of the same engine – and missed out on a clever torque-vectoring differential to improve handling.

Audi corrected its decision with the arrival of a facelifted S3 in 2025, in turn drawing it closer to the hero, five-cylinder RS3 hot hatch, which has had the trick differential since its generational change four years ago.

Is this the fast but refined, comfortable but engaging car the current-shape Audi S3 should’ve been all along?

The answer is yes, as you’ll find out in this review – but it has a big problem stemming from within the Volkswagen Group’s ranks.

The Audi S3 is priced from $78,800 plus on-road costs as a Sportback, or $81,800 plus on-roads as a sedan.

The options list, at least on this test car, gets a little tricky.

This red Sportback is a Model Year 2025 (MY25) build, so it is optioned with a Launch Edition package you can no longer order on MY26 cars, adding black exterior styling, five-arm wheels, carbon atlas interior inlays, black mirror caps and tailpipes, privacy glass, and S logo puddle lights.

The package costs $1115 (before Luxury Car Tax, more on that in a moment) for MY25, but to get the same features in MY26, you’ll need to spend $2400.

The big-ticket option is an Akrapovic sports exhaust with titanium tips and silencer priced at a whopping $7615 before LCT – as well as a $660 electric tailgate on this car.

Given the S3 sits on the edge of the Luxury Car Tax threshold ($80,567), it means adding more than a couple thousand in options means the car starts to rack up LCT. So by the time you’ve built the car in these images, there’s another $2287 to add to the bill.

All said and done, this test vehicle rings the ticket at an estimated $100,000 drive-away with NSW registration, or $101,500 for an equivalent MY26 specification, with plenty of option boxes left unticked.

The S3’s closest rivals remain the BMW M135 at $84,700 plus on-road costs and – while stocks last, as production is expected to wrap up in the coming months – the Mercedes-AMG A35 at $86,200 plus on-roads, in Edition R form.

A Volkswagen Golf R is considerably cheaper, at $71,990 plus on-road costs, while there’s still plenty of room left to the five-cylinder RS3 at $104,800 plus on-roads as a Sportback.

Standard features in the S3 include a 10.1-inch touchscreen, 12.3-inch instrument display, matrix LED headlights, keyless entry and start, colour ambient lighting, heated power-adjustable front seats, wireless phone charging, 15-speaker Sonos audio, and a 360-degree camera.

Features such as a sunroof and head-up display are optional, even at the S3’s price level.

Audi claims fuel consumption of 7.9 litres per 100 kilometres in mixed driving, only slightly more frugal than an RS3 with one more cylinder (8.4L/100km).

Over a mix of around town, highway and athletic country-road kilometres, the trip computer returned 10.2L/100km, which is not unreasonable given the significant amount of the lattermost type of driving I completed.

Expect closer to the claim in motorway driving, while city traffic will push fuel use closer to 11 or 12L/100km.

The S3 require 95-octane premium unleaded at minimum – not unreasonable given the performance on offer.

The S3 is covered by Audi’s five-year/unlimited-kilometre warranty, with service intervals set every 12 months or 15,000km, whichever comes first.

Service costs differ depending on whether the time or distance interval is achieved first.

Over five years, Audi quotes $4106, while over 75,000km the listed cost is $4801. Curiously, it is the other way around over a shorter period: it is cheaper to reach 45,000km than three years of ownership.

The most cost-effective option is buying a five-year prepaid service plan at the time of purchase for $2890.

It is a few hundred dollars dearer than a five-year/80,000km service plan on a BMW M135 ($2470), but less than half the price of five years/125,000km of prepaid maintenance on a Mercedes-AMG A35 ($6825).

A year of comprehensive insurance coverage with a leading provider is quoted at $2630, based on a comparative quote for a 35-year-old male living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history and personal circumstances.

The same parameters return $2656 for a BMW M2 automatic.

The Audi S3 is covered by a five-star ANCAP safety rating, based on 2025 testing conducted under protocols that have just been superseded for 2026, though are still tougher than what was in place when this generation of S3 was first tested in 2020.

It has renewed its five-star score thanks to the addition of safety features such as a front-centre airbag.

The crash-avoidance technology on board does not annoy or frustrate, either.

Lane-keep assist is easy to turn off – with a double-press of a button on the end of the indicator stalk – if you don’t like its intervention on narrow roads, while adaptive cruise control and lane-centring assist are well calibrated.

The driver distraction alert is not intrusive, either, as it monitors steering wheel and screen input, rather than watching your eyes with a camera.

While traffic-sign recognition is fitted to newly built Model Year 2026 (MY26) S3s, it is absent from this earlier MY25 test vehicle.

The S3 has never been an extroverted hot hatch, but the latest iteration is harder to spot at a glance than ever.

Audi has deleted the S3 badge from the grille, so it is almost impossible to differentiate from a regular A3 when this hot hatch is in traffic behind you.

Only lower air intakes that are usually closed up on an A3 – plus, on S3s without the Carbon Package, a different central grille insert and silver mirror caps – set it apart from the front.

Elsewhere, the S3 scores 19-inch alloy wheels in a choice of two designs, red brake calipers, and an S3 badge on its tailgate, above its signature four circular exhaust tips.

In an era of big screens and flashy trim, the S3 plays it safe – and conservative – inside.

The Lamborghini-style air vents look as cool today as they did when the current-generation S3 launched a few years ago, and the red stitching around the cabin helps break up a sea of black.

Perforations in the Dinamica synthetic suede on the doors allow the multi-colour ambient lighting to shine through, and perceived build quality is good, helped by high-quality switches for the windows and climate control.

Not all of the materials feel high-end, though. There is plenty of hard plastic low down on the centre console and dashboard, and the gloss black trim on the central tunnel is a scratch magnet – all shared with a base A3.

The leather-trimmed front seats are comfortable and supportive, with ample adjustment – power controls plus a manually extendable under-thigh cushion – and a heating function.

The leather upholstery gets sweaty on warmer days, however, and there is no seat ventilation – something standard in a $10,000 cheaper Golf R – or perforations in the trim.

The steering wheel is outstanding: no flat bottom to deal with in three-point turns, thin in its rim, wrapped in premium-feeling perforated leather, and loaded with clicky physical buttons rather than touch-sensitive sliders. The plastic shift paddles don’t feel as expensive, but they’re not too bad.

A fiddly circular slider is used for volume, rather than a dial, but at least there are old-school buttons for the air conditioning, drive modes, auto engine stop-start, and automatic parking, among other functions.

There’s not a whole lot of small-item storage, with only a small space under the tilting centre armrest, a compact glovebox, and door pockets that fit a large bottle and a notebook, but not too much more.

Amenities include a heated steering wheel, tri-zone climate control, two USB-C ports, a 12-volt socket, a wireless phone charging pad, and S logos projected from the door mirrors.

At 186cm (6ft 1in) tall, space in the rear is on the tighter side for the class. I can fit behind my driving position, but my knees are close to the front seats, my hair brushes the roof lining, and there’s not much toe room.

It is best used as a four-seater, as the central tunnel is tall, and the middle seat is narrow and flat. Kids will have an easier time, and there are outboard ISOFIX and three top-tether anchors for child seats.

Second-row features include two map pockets, a third climate-control zone with air vents, two USB-C ports, and a fold-down centre armrest with cupholders, though there is hard plastic on the top of the doors.

The S3’s boot is larger than that of an RS3, but not as spacious as a BMW M135. It is a decently wide and deep load space, with enough room for a large suitcase, and pockets on the sides for a tyre repair kit.

It is a confusing inclusion, as lifting the boot floor reveals what seems to be enough room for a space-saver spare. The rear seats fold in a 40:20:40 split for longer items, while the tailgate on this test vehicle is power-operated.

The 10.1-inch infotainment touchscreen works cleanly, the icons are large, and it is easy to operate, though the display resolution isn’t amazing, and the graphics are relatively basic.

Wireless Apple CarPlay worked reliably in my testing, offered alongside wireless Android Auto, embedded satellite navigation with Google Maps support, and AM/FM/digital radio.

More impressive is the 12.3-inch instrument display, which excels in its customisation, from a widescreen map to a pair of circular dial and a hockey-stick-shaped tachometer.

Navigating its views via the steering wheel buttons – and a menu in the touchscreen – takes some learning, but the cluster is likely to be a set-and-forget affair for most owners.

The 15-speaker, 680-watt Sonos sound system is great, with good clarity and plenty of punch, though earlier testing suggests the Harman Kardon audio in a Golf R may be a shade better. A head-up display is optional, not standard.

Audi offers a suite of connected services, including a smartphone app, split into two categories: Navigation and Infotainment (online traffic, Google Maps integration, fuel prices, weather data) and Security and Assistance (vehicle tracking, remote locking, roadside assistance, emergency call function, and a service reminder).

The former category is free for three years, while the latter is included for 10 years, before paid subscriptions apply for both.

No longer can you accuse the less powerful of Audi’s hot-hatch siblings of being boring to drive.

The 2.0-litre turbocharged four-cylinder is a known quantity that’s been graced with a little more sparkle with the S3’s facelift, now producing 245kW and – importantly, between 2100rpm and 5500rpm – 420Nm.

Whereas the five-cylinder RS3 is highly strung, S3 drivers relish in the four-cylinder’s broad power band that delivers strong low-down torque around town, but still pulls well to redline, without a flat spot that needs to be driven around.

The S3 has evolved into a fantastically fast car with more grunt than you can legally explore on public roads.

It’s matched well with the seven-speed dual-clutch automatic transmission, which is prone to an occasional stumble around town, but has been finessed over the years to be compliant enough in traffic while still capable of super-snappy shifts on the move.

Optioned on this test car is an Akrapovic sports exhaust, which introduces some much needed emotion to an otherwise muted engine. It lets out a few crackles and pops on downshifts, and it dials up the noise over the standard setup, especially in Dynamic mode.

It’s a shame Audi charges so much for it – close to $10,000 after Luxury Car Tax – because it adds the drama we expect from a hot hatch. It is a box I’d recommend ticking if the budget stretches far enough.

Around town, light and quick steering, good outward visibility and a well-tuned brake pedal make for an easy car to park, though the resolution of its parking cameras is nothing to write home about.

With the dampers set to Comfort mode, the suspension is taut yet comfortable over speed humps and road imperfections, but the 19-inch wheels and low-profile tyres are prone to clunking into sharp bumps such as potholes in a less pleasant manner.

Drivers can add firmness to the suspension via the drive modes, but I found Dynamic – its stiffest setting – too stiff to live with on bumpy city streets.

The latest S3 has introduced the ‘torque splitter’ rear differential from the RS3 and Golf R, which can send up to 100 per cent of rear-axle drive – although still only 50 per cent of total engine torque – to either wheel.

It gives the S3’s tyres and computers much more flexibility in how they pull the car into and out of tight corners, allowing the rear end to rotate with the front before leaving the driver with a flurry of understeer to manage.

It works best with the torque splitter primed, either in Dynamic mode, or by setting the car up as you like it through Individual mode.

Dynamic Plus takes it a step further, switching stability-control to Sport – though it can be fully re-engaged for safe use on public roads – to send “as much drive torque as possible” to the outside rear tyre, and make the handling even more playful.

Turn into a bend, and you notice a few things: the strong grip from the Goodyear tyres, the weight and response in the steering and, in Dynamic mode – tightening up the body control – the suspension’s ability to suppress roll.

Squeeze the power on at corner exit, and you can feel the rear differential work to pull the nose close to the inside of the corner, trimming understeer and allowing the driver to better adjust their line.

Narrower tyres and a softer chassis tune give the S3 a little less grip and stability than an RS3. That would normally be a bad thing, but it allows its limits to be explored – and drops a grin on the driver’s face – at less absurd speeds.

Dynamic Plus unlocks a sharper gearbox calibration – S+ rather than just S – holding the lowest gear possible, and being more aggressive in its high-RPM downshifts. Pulling a paddle shifter unlocks a less restrictive manual mode that will no longer upshift automatically at redline.

Other notes: the brake pedal is firm and inspires confidence, without being grabby, while tyre noise is hard to miss, even with the stereo turned up.

Find new and used Audi S3s for sale at Drive Marketplace, while to look at a new example in the metal, locate your nearest Audi dealer at this link.

More details on pricing, specifications and updates for the S3 are available here.

The Audi S3 has finally stepped out of the shadow of its more expensive sibling and – for most buyers’ needs – made it irrelevant.

Mechanical changes have added a layer of agility and engagement to the S3’s driving experience that up the fun factor, backed by more power from a tried-and-tested 2.0-litre engine that, with the optional exhaust, does a passing impression of a five-cylinder.

It complements a refined character around town, and enough technology, luxury and space to tick boxes for buyers spending this amount of money.

You could argue that there’s no longer a need to spring for the RS3, if the S3 offers most of the experience – only missing its brutal speed, widebody styling and authentic soundtrack – at 75 per cent of the price.

However, you can also make the case that a Volkswagen Golf R matches the S3’s performance and refinement – but adds a higher-tech interior, a bigger boot, and additional features – for a circa-$7000 saving, albeit without the four-ring badge on the grille.

It is a tricky spot for the S3 that gives buyers of these fantastic hot hatchbacks what matters most: choice.