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What's the difference?
If it was the original BMW 3-Series that invented the compact luxury car market segment all those years ago, then it’s probably fair to claim it was Audi’s A3 franchise that gave rise to the luxury small-hatch category.
On that basis, any new Audi A3 is news but, in the face of the SUV onslaught (including its own stablemate the Q3) the new small Audi has its work cut out for it.
With this update, there’s refreshed styling, a new interior layout and, for the launch of the new cars, two body styles, a conventionally styled sedan and what Audi calls the Sportback; fundamentally a five-door hatchback but with the German brand’s own flair plastered all over it.
As well as new connectivity and safety tech, the big news is the availability of a mild-hybrid driveline as well as a second powertrain option with more performance from a more conventional layout.
Interestingly, it’s that (mild) hybrid version of the A3 that represents the entry-level variant of the A3. A sign of the times? Perhaps.
As well as the two powertrains, there are two distinct chassis layouts, starting with a front-drive set-up and extending to the option of Audi’s Quattro all-wheel drive (AWD) system.
There was a big kerfuffle a few years back when BMW made the decision to switch its entry-level 1 Series hatchback from a rear-drive platform to a newer, more efficient front-wheel drive architecture, shared with its Mini sister brand.
Despite the concerns of a few enthusiasts and motoring writers, the impact of the change in driven wheels hasn’t harmed the 1 Series’ reputation or sales.
As with the equivalent entry-level small car models from BMW’s premium rivals, the entry grade 118i is an expensive car for what you get.
But does the 118i hatch have enough charm to transcend the price and spec concerns?
Producing a car that takes the end result beyond appliance status is no given in a world car-park dominated by SUVs. But Audi has, over the last few decades, shown it is very good at doing just that and the latest incarnation of its A3 stalwart backs that up.
While it might take a bit of mental gymnastics to understand why the base model gets the hybrid driveline, or why the more expensive variant costs more to option with adaptive cruise-control, the fact remains these are driver’s cars from a company that understands that concept.
Yes, the A3 is a relatively expensive way to arrive at a compact hatch or sedan, but if you value the journey as much as the destination, it will all make sense.
While the technical aspects of the 35 TFSI are interesting, the extra power and all-weather grip of the AWD 40 TFSI seem to be worth the additional dollars to us. The A3 has always been a sporty alternative, meaning the sportiest version is the one for us.
CarsGuide attended this event as a guest of the manufacturer, with meals provided.
The 118i has restored my faith in entry-level models from premium brands. Could it do with more standard gear? Absolutely, especially at $50K, and given what you could get in a higher-grade variant from a mainstream manufacturer, like the Mazda3 or VW Golf.
But the 118i is a cut above the mainstream hatchbacks in terms of performance, driver engagement and how the car makes you feel.
If value is the priority, look elsewhere. But if your budget stretches this far and you can live without some of the luxo features, there’s little to complain about with the 118i hatch.
It’s actually refreshing in 2022 to see a carmaker putting such an effort into something that isn’t an SUV.
That Audi has bothered with two distinct bodies and two equally distinct drivelines is also one for the books, really.
Technically, the mild-hybrid driveline as seen in larger Audis in recent years is probably the highlight of the new A3, and even though it doesn’t compare with a conventional petrol-electric hybrid, it demonstrates Audi’s attention to detail.
The same goes for the digital instruments which allows the driver to tailor the information displayed at any given time. Need a city map more than you need a tachometer at a particular point in you journey? That’s where this technology comes into its own.
Since the first-generation model arrived on the scene in the early 2000s, the 1 Series has had a slightly awkward design, partly due to the rear-wheel drive underpinnings. But this latest third-gen model, that debuted in 2019, is by far the most sleek and stylish yet.
This is helped by the slimline tail-lights, rising shoulder line and well-executed front-end design with the signature BMW quad headlights and wide 'kidney' grille.
In Australia the 118i comes as standard with 'M suspension' that lowers the ride height by 10mm, which gives it even more of a hunkered down look. The 'Black Sapphire' paintwork of the test car also upped the sexiness of the little hatch.
The 1 Series, and its competitors from Benz and Audi, are all visually appealing in different ways, ensuring they will each appeal to different buyers.
The interior design is unmistakably BMW, which hasn’t evolved significantly for about 15 years. Although new-generation models like the iX and the soon-to-launch X1 SUV prove that BMW can evolve.
BMW’s overall dash design and layout isn’t a million miles away from the edgy angular look of the new Audi A3 - and that’s no criticism.
The mixed synthetic leather and cloth trim on the seats has a cool blue cloth motif to break up the grey and add a small splash of colour to the cabin. Matching blue stitching on the dash and doors is a nice touch.
Although it’s a compact car externally, clever packaging means there’s ample space inside. Even a tall-ish rear-seat passenger can sit behind a tall-ish driver, and the sculpted rear seat-backs help make that possible.
The only complaint would be that the dark headlining material makes the interior a bit of a cave at times.
Paying more for the 40 TFSI gets you extra cargo nets on the front seat backrests and luggage area, 12-volt sockets in the rear seat and boot. Both versions get floor mats and a centre arm-rest front and rear.
The rear seat in either is split 40/20/40 for a range of possibilities, with the Sportback offering 325 litres (VDA) for the Sportback quattro models, and 380L (VDA) for the 2WD models and its boot capacity is increased to 1145L (VDA) with the rear seat folded flat. The luggage space in the sedan is 390L (VDA) for the quattro AWD version, and a more capacious 425L (VDA) for the FWD model.
Up front the 118i’s sports seats offer unbelievable levels of lateral support, and despite the bolsters being adjustable, it might be a little too snug for some. It’s expected for a pricey hot hatch but not the lower grade 1 Series. And given how much side support there is, it could do with a touch more under-thigh padding. The driver’s seat is power adjustable while the front passenger has to adjust their seat manually.
The typically chunky BMW M leather steering wheel looks and feels expensive and offers good grip. The minimal steering wheel controls are well labelled with text or clear icons. I appreciated the analogue air conditioning controls instead of them being buried in a multimedia screen menu.
The multimedia system menu is unfussy and while it’s not as tech heavy as some other systems, I don’t see that as a negative. It just means there are fewer functions you’re forced to remember. You can control the system via the 'iDrive' controller in the centre console or it can be used as a touchscreen. I like the way users are given both options. The 10.25-inch screen is nice and wide but quite narrow. Overall, BMW’s operating system is easy to use and functions well.
In terms of devices, the 118i has a wireless charging pad, as well as a USB-A and USB-C port, and a 12-volt charger up front.
It has a smallish central bin, but it’s fine for a number of smaller items. Tall bottles fit easily in the door storage bin and there’s a secondary slot for other items. The 118i comes with a decent sized glovebox, and two front cupholders with a nook for phones just behind it.
The 118i is more spacious than anticipated, especially in the second row. The back of the front seats are scalloped, allowing for a little extra knee room, but there is a good amount of legroom generally, and plenty of headroom, despite the lower roofline.
The rear seats are on the flat side but still comfortable, and there are ISOFIX points on the two outboard seats.
Rear seat occupants have access to map pockets, two more USB-C ports, and storage for big bottles in the doors (just), but there are no rear air vents. The seats fold 60/40 and there’s no central armrest.
Open the hatch and you’ll find a reasonably sized boot that can swallow 380 litres, expanding to 1200L with the rear seats stowed. There is plenty of under-floor storage because there’s no spare tyre on account of the run-flats favoured by BMW. There are, however, a couple of tie-down anchors and shopping bag hooks.
These are not bargain basement cars, and with a kick-off price of $46,900 for the A3 35 TFSI Sportback (the hatch version) and $49,400 for the sedan in the same specification, that much is obvious.
The fact is, both the new A3 variants represent a fair mark-up on the previous model. But if you look at the post-Covid car market in a macro sense, you can see the same trend across a lot of brands and a lot of previously entry-level models.
Ante up to the 40 TFSI, and the news is no different with an asking price of $53,500 (Sportback) and $56,000 (sedan).
If the price sounds steep on a per-kilo basis, you need to remember this is an Audi we’re talking about and that price premium is part and parcel of a prestige badge. Don’t like it? Go and buy a VW Golf. That’d be Audi’s advice, anyway.
To justify that viewpoint, the A3 is loaded with some impressive standard kit. The 35 TFSI starts things off with Audi’s vaunted 'Virtual Cockpit', wireless phone charging, voice recognition, Apple CarPlay and Android Auto, remote central locking, paddle shifters, park-assist, sat-nav, a 10.1-inch touchscreen, LED headlights, a multi-function steering wheel, automatic lights and wipers, digital radio, cruise-control and dual-zone climate control.
The 40 TFSI adds a range of aluminium trim pieces and garnishes, Audi’s 'Drive Select' system which allows the driver to choose the characteristic of the dampers, steering response, exhaust sound, throttle response and transmission shift points.
The 40 TFSI also adds sportier front seats, a rear spoiler, body kit, extra courtesy lights around the car and details such as a 12-volt socket in the luggage area.
Options on the base model include a 'Comfort Pack' consisting of adaptive cruise-control, electric front seats, heated front seats, auto dimming headlights, heated and folding mirrors, four-way electric lumbar control and 'Adaptive Drive Assist', including 'Emergency Assist.'
That will set you back $2600, while the 40 TFSI can be enhanced with Audi’s 'Premium Package' which adds those same items as well as aluminium-look trim pieces, a better sound system, head-up instrument display and a memory function for the driver’s seat. That adds $4500 to either the 40 TFSI Sportback or sedan.
The 118i kicks off the BMW 1 Series range from $49,900, before on-road costs. From there you can step up into the warmed over 128ti from $58,900, and the range is topped by the spicy all-wheel drive M135i xDrive in Pure ($67,900) or regular guise ($72,900).
The 118i’s circa-$50K price tag is a lot for an entry-level small hatchback, but it seems BMW has become better at including standard gear in its base variants. But it’s still not what you’d call generous.
Standard equipment in the 118i includes single-zone climate control, a head-up display, LED headlights and fog lights, an 'M aerodynamics' package, leather steering wheel, sports seats, a six-speaker audio system, auto-dimming rear-view mirror, rain-sensing wipers, 'M Sport' suspension, wireless smartphone charging, a 10.25-inch digital instrument cluster, and a 10.25-inch multimedia screen with satellite navigation, digital radio and Apple CarPlay.
The only option fitted to the test car was premium paint ($1308) which brought the price-as-tested to $51,208, before on-road costs.
So there’s some good tech on the list, but there could be more premium features, you know, given it’s a premium brand, and all. Heated seats would be nice, for example.
Unsurprisingly, BMW offers a number of different options packs ranging in price from $1700 to more than $4000, depending on what you want.
Its two closest rivals are of course from the other big Germans - the Mercedes-Benz A180 (from $49,890) and Audi A3 35TFSI ($47,100) hatchbacks. The level of standard gear is relatively even across the three, although the Audi has the lead when it comes to safety (more on that below), hardly surprising given it's the newest of the three.
There’s also the question of value, especially when you compare with high-grade small hatchbacks from mainstream brands. Models like the Mazda3 X20 Astina ($43,190 BOC), or Honda Civic VTi-LX ($47,200 drive-away) could be good alternatives, or for similar money you could get into something sporty like a Hyundai i30 N Premium (from $48,000 BOC) or for a few grand more there’s the Volkswagen Golf GTI ($54,990 BOC).
While both versions of the A3 use a seven-speed dual-clutch transmission (no manual gearbox will be offered) there’s not a lot of commonality beyond that.
So let’s start with the 35 TFSI’s mild-hybrid running gear. To begin with, mild-hybrid in this sense refers to a starter motor/alternator unit that is linked to a 48-volt battery (the car also has a conventional 12-volt electrical system).
When coasting, the engine can shut off and the starter switches to alternator mode and harvests the otherwise lost energy to charge the 48-volt battery. This 48-volt system also powers the car’s functions when the engine is switched off.
When the car needs to restart (when the traffic-light goes green) the starter kicks in, using that harvested voltage. There’s also a regenerative braking function, saving the car’s actual brakes for more severe stops.
Unlike a 'normal' hybrid system, there’s no electric motor to help drive the car, but Audi claims a potential fuel saving of 0.4 litres per 100km from the set-up. Any benefit will be most noticeable in urban running where the car is speeding up and slowing down regularly.
The rest of the 35 TFSI is technically interesting, too, with the 1.5-litre four-cylinder turbocharged engine featuring cylinder-on-demand where it can shut down individual cylinders during cruise conditions to save fuel.
When firing on all four, however, the engine is good for 110kW of power and 250Nm of torque, figures which have become almost an industry standard in this sized vehicle.
The 40 TFSI, meanwhile, ditches the hybrid gear for a conventional 2.0-litre powerplant with a turbocharger and 140kW of power. Torque is a handy 320Nm and is developed over a wide range of engine speeds (anywhere from 1500 to 4100rpm).
The other big difference is in the driveline. The 35 TFSI is a front-wheel drive platform while the 40 TFSI uses Audi’s Quattro AWD as it applies to Audis with an east-west engine layout.
That means the car behaves as a front-drive vehicle until the electronics decides more power should be sent to the rear wheels. At that point, anything up to 99 per cent of the available torque can be transferred rearwards via an electronically-controlled multi-plate clutch housed at the rear of the car, just in front of the rear axle.
The 118i is powered by a three-cylinder turbocharged petrol engine, offering up 103kW of power and 220Nm of torque. It’s the same unit found in the Mini Cooper, albeit uprated by 3kW for the BMW.
It is front-wheel drive and the engine is paired with a seven-speed dual-clutch automatic transmission.
BMW says the 118i can cover the 0-100km/h sprint in 8.5 seconds.
If you’re after a quicker 1 Series, then the 180kW i28ti or 225kW Mi35i xDrive could be a better pick.
With all its cylinder shut-off, hybrid tricks and small capacity, the 1.5-litre engine boasts a 5.0 litres per 100km combined cycle fuel economy figure.
Combined with its 50-litre tank, that’s a potential for 1000km between service-station visits. It’s also commendably close to the numbers you’d expect from a similarly sized vehicle with a turbo-diesel engine.
The more conventional 2.0-litre A3 variant, meanwhile, boasts a still-credible 6.7 litres per 100km for the same test. To counter its greater thirst, Audi has fitted a slightly bigger, 55-litre fuel tank.
The headline act, of course, is the base-model’s highway figure which, thanks to the small capacity engine and its reduced pumping losses at small throttle-openings, can get right down into the low-fives (5.0 litres per 100km) in the real world at real highway speeds.
With a tail-wind, you might even see a number starting with four. This is why you don’t need a diesel engine any longer.
Expect the 40 TFSI to use roughly a litre more across every 100km travelled. And in either case, you are stuck with paying for 95-RON premium unleaded.
According to BMW, the 118i consumes 5.9 litres of fuel per 100 kilometres. During my week of mixed driving with the hatch, I recorded a much higher average figure of 10.8L/100km. This was exacerbated by the fact I did my main test drive shortly before returning the car. It was much more efficient around town.
It has a 50-litre fuel tank and does require premium 95 RON petrol. In terms of CO2, the 118i emits 135g/km.
Let’s start with the less powerful 35 TFSI, if only because - even though we know better in 2022 - there’s a temptation to think a 1.5-litre engine will be underdone. The reality, however, is that you’re not going to drive this car and judge it as anything other than very resolved.
While it’s true the peak power of 110kW isn’t startling, it’s the way it’s delivered (along with the 250Nm of torque) that sets the mood here.
Like many late-model Audis, this one has an engine with a fizzy, zingy feel that makes you want to rev it just to hear and feel it. And when you do, it pays off with plenty of flexibility and a sophisticated, refined feel.
Whether the mild hybrid driveline is adding anything to the formula is debatable, because the technology is so seamless you won’t pick what it’s doing other than the engine stop-start function, which is one of the better ones we’ve sampled.
Move from the 35 into the 40 TFSI and you immediately notice the extra power and torque on tap. And although it’s still not a hot-hatch by modern standards, there’s always enough urge to make the 40 TFSI a convincing driver’s car.
Again, the power delivery is the key to it all, making more of what the engine has to offer by actively encouraging you to use it. The seven-speed dual-clutch transmission is your friend here.
The extra driveline functionality of the 40 (namely the AWD system) actually means less than you might imagine in day-to-day life. We didn’t get to drive the car in the wet, but it’s fair to say that those conditions (or a loose, gravel road) are really the only ones likely to make a difference to the way the basic platform feels.
That’s for two reasons; the first being the all-wheel-drive is fundamentally on demand anyway and, secondly, the basic platform is so composed and balanced in the first place, that the Quattro system will spend a lot of its time hiding in the background.
The 40 TFSI also get the selectable drive modes which break with tradition by actually making a difference to the way the car feels.
But the reality is that if you took the best bits of every other setting (Comfort, Dynamic and Efficiency) and loaded them into the Individual button, you’d probably wind up with something very close to what the non-adjustable 35 TFSI offers in the first place.
You have to admire the way Audi has made a front-drive car in the A3 steer, handle and talk to the driver in such a clear, precise way.
Yes, the 40’s selectable modes add another layer to that, but only if you can be bothered. Even more than that, the A3 in either form feels like its ultra-stable and safe, while the levels of feel and feedback give the impression they were decided upon by people who enjoy driving.
To be honest I wasn’t particularly hopeful of an engaging driving experience with the 118i given I have been underwhelmed by the base Mercedes-Benz A-Class. But after a week with the 1 Series, I reckon it might well be the pick of the premium players in this segment.
The 118i is also a much more enjoyable car to drive than the entry-level version of the outgoing X1 SUV with which it shares a powertrain. If you don’t need the extra cargo space or the ride height of the X1, then please test drive the 118i just to see what you’d be missing if you opted for the X1.
BMW has always excelled when it comes to building punchy powertrains for driver’s cars, and that continues to be true, even for its smallest internal combustion unit.
The 103kW/220Nm turbocharged three-pot is smooth yet responsive, offering linear power and torque delivery and acceleration that will bring a smile to your face.
Obviously it’s not as quick as its sportier 1 Series siblings, but make no mistake, you can still have fun in a 118i.
There’s a little bit of lag when taking off and some hesitation from the seven-speed dual-clutch transmission during shifts, but neither are deal-breakers.
That obsession with driver engagement has paid off with the steering which is quick and direct.
The suspension is geared towards dynamism and as a result of that, and the sharp steering, you’ll be seeking out the nearest twisty section of road every time you get behind the wheel. It’s planted in corners with excellent road-holding characteristics.
Unfortunately that dynamic tune, and the low-profile tyres, means the ride is on the firmer side and a little jiggly around town, but it settles at speed.
In terms of visibility, the 118i has huge B- and C-pillars, small rear side windows and a narrow rear windscreen, so you’ll be relying on the parking sensors and camera. The 11.4m turning circle feels large for a small car, too.
The cabin is well insulated from some outside noise but coarse chip roads will make their presence felt.
Possibly the headline (no pun intended) act here is the inclusion of a centre-front airbag. This is something we’ll be seeing a lot more of in the future, particularly in compact cars, where the proximity of the front-seat passengers can lead to head clashes in a side-impact crash.
Beyond that, the Audi has six airbags including side-curtain airbags.
In terms of driver aids, the A3 sets a high bar for its competitors, and with autonomous emergency braking including pedestrian and cyclist recognition, rear-cross-traffic alert, lane-departure assist and a rear-view camera, most bases are covered.
The major omissions are adaptive cruise-control, but that’s available in the 35 TFSI as part of the $2600 Comfort Package, and in the 40 TFSI as part of the $4500 Premium Package.
Yes, the Premium Package also includes heated, memory front seats, a head-up display, improved stereo and the multi-coloured ambient interior lighting (and more) but it does seem strange that it costs more to option up to adaptive cruise in the 40 TFSI than in the base-model.
The A3 scored the full five stars in ANCAP crash testing in 2020.
The 1 Series range was awarded the maximum five-star rating from crash safety watchdog, ANCAP, in 2019.
The 118i comes with front and rear parking sensors, reversing camera, cruise control, low-speed auto emergency braking, forward collision warning, rear cross-traffic alert, lane departure warning, driver fatigue detection, and six airbags.
It is not fitted with a front centre airbag to help mitigate against injury between the driver and front passenger in a side collision. Only the Audi A3 has this out of the three Germans in this segment.
In this grade, the 1 Series is fitted with regular cruise control, rather than the adaptive system that moderates speed according to the speed of the vehicle ahead. It is a surprise to see the more old-school system in a BMW.
The lane keeping aid works well, smoothly centring the vehicle in the lane when required.
Audi recently improved its factory warranty from three years to five years and unlimited kilometres. Any new Audi (including this one) sold after January 1 this year is the beneficiary of that change.
Audi specifies service intervals of 15,000km or 13 months.
There’s also the option of a fixed-price servicing program for the first five years of A3 ownership, and that will cost you $2250, for an annual average of $450.
BMW continues to offer a three-year/unlimited kilometre warranty for its models, which is disappointingly a couple of years off most rivals these days.
The German giant also does things a little differently when it comes to servicing. Instead of service schedules, it has ‘condition-based servicing’, which is when the vehicle’s computer will inform you when the car needs a service.
BMW’s Service Inclusive pre-paid plan runs for five years or 80,000km for the 1 Series, and costs $1700 up front when you buy the car. That averages out to about $340 per service, which isn’t bad for a premium marque.