What's the difference?
Can a hatchback still be a fun and fashionable way to get around when the SUV has become such a status trend?
The facelifted Audi A3 certainly makes a case for it.
The refreshed 2025 A3 is, as Audi puts it, more competitive than before when it comes to not only value but also, you might agree, style.
Last year, before the update even arrived, the A3 sold almost as well as its Volkswagen Golf corporate sibling. In fact, it’s Audi’s third most popular model behind the Q3 and Q5 SUVs.
It’s also third in its segment of ‘Small cars under $40,000’, behind only the MG4 electric car and, you guessed it, the VW Golf.
As such, it also outsells its actual closest rivals the BMW 1 Series and Mercedes-Benz A-Class, both of which are close to the A3 on price.
Now that it’s been given a bit more razzle dazzle, let’s see if the A3 can keep that momentum going.
Back in 2010, Mitsubishi released Australia’s first mainstream electric vehicle (EV) in nearly a century.
That model, the i-MiEV, was a four-seater city-sized Kei car from Japan that cost $48,800, before on-road costs, or from roughly $70,000 in today's money. Little wonder it bombed. That was four times more than petrol-powered equivalents of the time.
Now, in 2026, the new BYD Atto 1 is the first EV sold here since the i-MiEV’s 2013 departure to be considered a four-seater city car.
It’s also the least-expensive EV money can buy, being even cheaper than many internal-combustion engine alternatives like the Mazda 2 and Toyota Yaris hybrid. The fact is, there’s nothing remotely near the Chinese supermini’s base price that’s electric.
But is the Atto 1 any good?
Closing in on $60,000 for a small car isn’t cheap. Ask a car dealer and they might even say the hatchback is a good way to get someone into a showroom to eventually look at an SUV.
But I reckon you’d be doing the A3 a disservice to count it out. It’s always been one of those cars that does everything well, and with this current facelift manages to keep its practicality without becoming boring.
It looks good on the outside, it’s smart on the inside and it’s fun to drive while remaining sensible. Even if you get it in bright yellow.
The BYD Atto 1 has already earned its place in history as the cheapest new EV ever sold in Australia. And the good news is that, on the strength of bigger-battery Premium version, it rarely puts a foot wrong as a city car, exceeding performance, efficiency, refinement and comfort expectations. The Atto 1 really delivers around town.
But the baby BYD’s price is too close to larger EVs with better range, while extended exposure reveals issues with seat comfort, touchscreen access/distraction, ADAS interference and nervous steering feel at speed. Australian road tuning is required to rectify these.
Still, as a cheap urban EV runabout, the Atto 1 Premium still (just) stands alone. A glimpse into the future, someday, all city cars will likely follow in the bold BYD’s footsteps.
Eye of the beholder and all that, sure, but the A3 looks cool from the outside. It’s got this angular design but manages it without being too aggressive or busy with other design elements, so it still has a ‘premium Euro’ feel to it.
Shooting pics of the car for this review, the harsh light accentuated its sharp lines. It looks sculptural rather than just some little blob.
At the same time, thanks to the proliferation of sports design packs like the S Line, The A3 looks like it could be an S3, almost. Which makes sense, because the front bumper and rear diffuser as well as the roof spoiler are all partly inspired by RS models.
New for the A3 is the flat, 2D Audi badge, the model name on the B pillar and the new font for its name on the tailgate.
The lights in the cluster are able to look narrower than before thanks to their customisable settings, which allow you to choose the light signature, while the grille has a flatter appearance and the air intakes are bigger. Even the wheels look like they’re from a sports car.
Whether you’d have the A3 in the Python Yellow of our test car is another thing. I don’t mind a loud colour but I reckon a bit of 'District Green', 'Ascari Blue' or 'Progressive Red' would be the vibe.
Also, any colour that isn’t white is a cost-option on the A3, all of them coming in at $1350, except Ascari Blue which is an Audi Sport colour and costs $1850.
Speaking of the vibe, inside the A3 feels properly nice. It’s not just a spruced up Golf in there. There’s proper Audi character to the car, though that means plenty of piano black trim to get smudgy.
Audi’s done a good job making the layout look sleek without resorting to locating all the controls in the screen. There are design elements in the cabin that aren't strictly necessary but are worth doing for the way they look.
Things like the way the vents flank the driver display or the trim inlay on the passenger side of the dash.
Fun fact. Designer Wolfgang Egger was responsible for the gorgeous Alfa Romeo 156 of 1997 among others, as well as some Audis and Lamborghinis later on. You can definitely see the latter’s influence in the Atto 1’s angular face.
Based on the Dolphin architecture and badged the Dolphin Surf elsewhere (as well as Seagull but that name wouldn’t fly here), the BYD’s boxy proportions are pure supermini and is about the size of the previous-generation Honda Jazz.
However, the designers have added some crossover cues to the styling, including plastic cladding around the wheel arches, to give it a pseudo SUV look.
Inside, though, the Atto 1 is unashamedly hatchback in layout and appearance, with a contemporary, minimalist dash, big central touchscreen with precious few buttons and loads of storage.
In other words, a typical modern small car from China.
Starting from what’s right in front of you as a driver, the steering wheel is the same as in bigger, more expensive Audis. That’s a good thing, because it’s nice to hold, has a good shape for the nine-and-three hand position and it’s not too thick.
As well as the nice, clear buttons on the wheel, you’ve got some physical controls for the climate control and some of the vehicle functions like parking assist and stop-start under the multimedia screen.
For a car this size, the 10.1-inch central touchscreen is plenty big enough, and the fact it doesn't sit up high over the dash is great. It's like a perfect arm's length for your standard-sized adult (like me). I can reach the other side of the screen without needing to lean.
The fact there’s no head-up display is a bit of a let-down, but the now-standard 12.3-inch driver display is very good. It’s configurable yet clear, and means you can get detailed navigation information in front of you rather than having to look to the multimedia screen.
The test A3 has genuine leather upholstery, which is $1100 extra. Not the most you’d pay for leather seats in a Euro, and the seats are comfortable. They're nicely bolstered, the drivers’ side is electrically adjustable and the leather doesn’t feel hard or rough to the touch.
Sitting behind my own seating position in the second row is a little tight, however. At 178cm, my knees almost touch the seat in front. There's also no sunroof, and even though there's just about enough light, that omission doesn’t help the cramped feeling.
There are, like the front, two USB-C ports and the air vents in the back, the latter separately adjustable to avoid arguments, though the cupholders in the armrest are in an awkwardly central position.
Behind that, under the 380-litre boot's floor is a space-saver spare tyre. That's better than some SUVs designed for family adventures that only offer up an inflator/repair kit. Keep that up, Audi. Good job. Well done.
If you fold the rear seats, you get 1200 litres of space. Interestingly, those luggage space figures are the same as the BMW 1 Series.
The BYD’s boxiness sure pays dividends accessing the Atto 1's interior, aided by tall doors, a high roof and lofty seating.
Initial impressions are very positive.
Lots of space, a decent driving position (in the Premium at least; the Essential has rake-only steering adjustment), grippy little wheel and a solid look and feel impart a sense of quality. This does not seem built down to a price.
The elevated centre console/fixed armrest provides ample storage below and easy reach of USB ports, sturdy cupholders above and a raised smartphone rest that doubles as a charger (again, only on Premium), allowing for quick downward glances without having to touch the device. Helpful.
Further points are won due to the very clean and minimalist dash presentation, with an electronic instrument display ahead of the driver (not a given nowadays thanks to Tesla’s minimalism-gone-mad influence), offering all the information you need in a concise and notably colourful manner.
That 10.1-inch central touchscreen, meanwhile, is probably one of the better examples from China, possessing superficially logical operation, clear markings and a row of fast-access icons for climate, audio, vehicle function, home screen and other controls.
However, the more time you spend in the Atto 1, the more the cabin doesn’t stand up that well under scrutiny.
The shapely tombstone-style front seats, which look a million dollars, are comfortable on short journeys but disappoint during longer drives, revealing a lack of sufficient back and thigh support.
There are no regenerative braking paddle shifters for single-pedal driving, just an on/off tile requiring a distracting and time-consuming touchscreen-menu deep-dive.
In fact, most functions demand at least one or two eyes-off-the-road-ahead prods of the screen, which is annoying and potentially hazardous.
Using the climate control is a good (bad) example.
Infernally fiddly screen slide controllers that are hard to pin-point with a hovering finger while the car is moving, let alone modulate, leads to temperature-selection fury. And those vinyl seats are clammy regardless of humidity levels and their perforations don’t help. Setting the desired climate environment is an utter faff.
And why must BYD’s synthetic leather smell so pungent? The off-gas odour can be nauseating for some on warmer days.
Worse still, even a glance towards the touchscreen sets off the distraction nannies. Frustrating. So is the intrusive lane-keep assist tech, unless you keep the car perfectly centred, with its constant nudging of the wheel while it nags away. More like Aggro 1.
Inevitably, turning these and other ADAS warnings off requires several menu deep-dives, leading to more driver-distraction paranoia. It’s a circle of stupidity for tech that’s meant to protect. And every new drive defaults to ‘on’. It's an infuriating mess.
Meanwhile, the Atto 1’s (two-person-only, remember) rear seat area also starts off promisingly, with easy entry/egress, adequate space (even for long legs and big feet) and a backrest and cushion combo offering sufficient comfort and support.
Amenities include useful door storage, overhead grab handles and map pockets, while the back of the centre console provides a cubby area just wide enough hold a bottle or larger keep-cup. That’s necessary because there is no folding armrest or subsequent cupholders back there, nor reading lights or USB ports.
And while the upward sweep of the window line means the rear can seem dark, the shape of the front seats allows some vision around and even through them for rear occupants.
Further back, the boot area is larger than the BYD’s diminutive size suggests, at 308 litres with backrests erect and 1037L with them folded forward.
The deep floor hides an even deeper cavity that’s large enough for charger cables, laptops and other paraphernalia that should be out of sight. That almost negates the need for the AWOL luggage cover.
But there's also a tyre repair kit instead of a spare wheel in there, and regular readers will know how incorrect that is. Every vehicle sold in Australia should come with one. Even city cars.
Loading/unloading is easy and there are hooks to secure things to, but clearing the high lip may be an effort for some.
And, though an EV, the is no extra storage to be found under the bonnet. The Atto 1 has no front boot, or froot.
For $54,800, before on-road costs, the A3 can be had as a hatchback - aka Sportback if you’re Audi - or for $57,800 as a sedan.
It’s a little over $4000 more expensive than the pre-facelift version, but Audi reckons there’s about $10,000 more value than before.
And value can be an important when you’ve got the BMW 118 ($57,600) and Mercedes A200 ($61,900) not sitting too far away in terms of price.
Part of the A3’s value equation comes thanks to the addition of the S Line package as standard, which not only makes the A3 look sportier but adds heated sports seats, aluminium interior trim elements and stainless steel on the pedals.
There’s also a larger 12.3-inch screen for the driver display as standard rather than an option. Audi has also reconfigured the air vents for the three-zone climate control, as well as adding a new style gear shifter.
Continued standard kit on the A3 is a wireless phone charger as well as a 10-speaker sound system, an ambient lighting package, a leather steering wheel and synthetic leather trim on the seats which all make for a sporty feel on the inside.
But on the outside there’s also customisable LED headlights and daytime running lights, as well as dynamic indicators and a set of 18-inch alloy wheels.
The car we tested also has a couple of options, its 'Python Yellow' paint is $1350 which I’ll come back to in the design section, but there’s also optional leather seats for $1100 and an electric tailgate for $660, the latter certainly worth it, I reckon.
All up, the car on test comes to $57,910, before on-roads, so even an optioned-up A3 comes in at either the same or less than its closest rivals from BMW and Mercedes-Benz.
And… what a perfect time to release Australia's cheapest new EV!
Sat alongside the base Essential from $23,990 (all prices are before on-road costs unless otherwise stated) is the Premium as tested here, starting from $27,990 and representing a $4000 difference.
But oh, what a difference.
The cheaper Essential comes with a 30kWh battery, providing a WLTP range of just 220km. Usefully, the Premium’s battery is 44 per cent larger at 43.2kWh, boosting range to a more-comfortable 310km, while power jumps by 77 per cent.
Every Atto 1 includes synthetic leather-trimmed seats, a 10.1-inch central touchscreen, rear camera with sensors, adaptive cruise control as part of some Advanced Driver Assist Systems (ADAS) tech (more on safety later on), wireless Apple CarPlay and Android Auto and even Vehicle to Load (V2L) functionality, so you can use your hairdryer on the fly. Handy!
However, the Premium ups the ante with a surround-view monitor, powered and heated front seats, reach as well as rake adjustment for the steering wheel, a wireless charger, LEDs rather than halogen headlights and 16-inch alloy wheels instead of 15-inch steelies with hubcaps.
But… both are four-seaters only. And neither offers an exterior temperature gauge, remote keyless entry from the passenger side (you’ll always need to press a fob), a luggage cover or a spare wheel – just the totally-unsatisfactory tyre repair kit.
Plus, there’s no heat pump so, in winter, turning the temperature up will drag range down noticeably, while a lack of liquid cooling for the battery will do the same during a hot Aussie summer, since the AC has to work overtime doing that job instead.
And we’re not convinced the Atto 1 represents such great value.
Yes, that small-battery Essential undercuts every hybrid bar Suzuki’s (mild-hybrid) Swift, including the MG3 Hybrid+ and Toyota Yaris HEV, and even the ageing Mazda 2 petrol costs more, but its limited range means it’s better as an inner-urban, small-distance-only commuter proposition. Best as a second or even third car.
Meanwhile, the bigger-battery Premium is priced perilously close to significantly larger EVs with greater range, including BYD’s own Dolphin from $29,990, the MG4 Urban from $31,990 drive-away, GAC Aion UT from $32,990 drive-away and the coming Geely EX2.
And, alongside cheaper-still petrol-powered alternatives such as the Kia Picanto, MG3 and MG5 sedan, there are also smaller SUVs that slip beneath the bijou BYD, like the Chery Tiggo 4, Haval Jolion, Hyundai Venue, Mahindra XUV 3X0 and MG ZS.
What we’re saying is, unless the Atto 1’s sub-four-metre length and narrowness are paramount, it’s behind the eight-ball for value against an array of more-substantial alternatives costing not much more.
Still, we get this is that rare thing today, a truly-new city car and we’re here for that.
The A3 is powered by a 1.5-litre, turbocharged four-cylinder petrol engine that makes 110kW and 250Nm.
It drives the front wheels via a seven-speed dual-clutch auto transmission and it can hit 100km/h in a claimed 8.1 seconds.
It’s also got a 48-volt mild hybrid system to help with efficiency, though you’d need to be told about it to notice. It also helps with the A3’s (smooth) stop-start system.
The Atto 1's electric motor is offered in two output choices. Either way, it can be found under the bonnet and driving the front wheels via a single-speed transmission.
The Essential scores a low-power version making 65kW and 175Nm of torque, which is enough for a 0-100km/h sprint time of a still-decent 11.1 seconds, while the Premium’s high-power unit ups those to 115kW and 220Nm respectively, shaving two seconds off in the process. Top speed is said to be 135km/h.
Note that, while the latter grade’s 43.2kWh battery adds 96kg overall compared to the smaller 30kWh model, it still enjoys a way-superior power-to-weight ratio of 82.7kW/tonne versus just 50.2kW/tonne.
The A3’s 50-litre fuel tank needs to be filled with RON 95 premium fuel and it’ll drink a claimed 5.3-litres per 100km on the combined (urban/extra-urban) cycle.
Theoretically you’re topping 900km a tank there, but given how fun this car is to drive you’d have to be well behaved to get even close.
For reference, whenever I was on a normal, day-to-day drive on test the A3's trip computer was returning figures in the mid to high sixes.
The official consumption average for the Essential is 15.5kWh/100km and its 30kWh 'Blade' LFP (Lithium Iron Phosphate) battery offers a WLTP range of 220km.
The 43.2kW Premium bumps the energy use figure up to 16kWh/100km but offers 310km WLTP.
We came close to latter claim, with 263km of mixed driving and still showing about 10 per cent of range left, while the car’s consumption readout averaged 13.7kWh/100km overall. That rose to 16.5kWh/100km during a stint of harder, highway-heavy driving.
Charging times vary. With an 11kW AC capability on both grades, the Essential needs up to 16 hours and the Premium 22 hours plugged into a regular socket, and five and seven hours respectively using an optional 7.0kW Wallbox.
Meanwhile, switching to DC fast charging, the Essential’s 65kW capability means a 10-80 per cent top-up can be achieved in under 40 minutes, against the 85kW Premium’s 30 to 50-minute requirement.
First things first, the A3’s exterior and S Line pack are a clue to the way the car drives. It’s probably not the perfect car if you like a cushy, soft ride.
Its suspension errs towards the stiffer side of things, and certain bumps can feel more significant than they need to. But even on particularly bad roads or tram tracks in the city the dampers do a decent job of soaking up the harsh stuff.
It also means there’s more road noise than you’d like on some older highway surfaces, but only in a way that might get annoying if you’re on a road trip with the stereo off for some reason.
The upside of that is its steering feels well weighted and accurate. Plus, the way it handles and corners feels like a bit more grunt would make this a proper driver's car.
It’s not too intense, and there’s enough feedback to make it feel like the A3 shouldn't be a city-dweller only when it comes to driving.
Of course, it’s a hatchback, so you've got the advantages that come with less weight and a lower centre of gravity.
It doesn’t have enough weight to push into understeer more than you’d like on a tight corner. But it also doesn’t feel so light that you’re not sure how it’s going to behave under sharp braking.
The A3’s drivetrain, despite looking underwhelming on paper, feels practical on the road. Sure, 110kW isn't anything wicked, but its 250Nm feel like they’re working in the right places - that being between 1500 and 3500rpm.
It isn't blisteringly quick but even with the seven-speed transmission operating in default auto mode it usually feels like it's in the right place, let alone chipping in with 'manual' shifts via the paddles or shifting drive modes. The A3 has a choice of 'Normal' and 'Sport' shift settings.
You might be a little disappointed if you thought you’d be getting anything approaching a hot hatch, but for an entry-level model the A3 more than holds its own. It’s a solid platform that performs well without compromising too much when it comes to daily driving ability.
Sadly, we cannot comment on how the 65kW/175Nm Essential drives, but with 77 per cent more power and 25 per cent more torque, the 115kW/220Nm Premium’s performance is one of its calling cards.
Lively off the mark, even in Eco, it thrives in inner urban environments, with instant throttle response for effortlessly zippy and smooth acceleration, as you’d expect of an EV.
And it just keeps on keeping on at speed, giving the Premium a terrific breadth of performance flexibility. We’re now very curious to see how the Essential goes.
Armed with light and alert steering, the Atto 1 can weave in and out of traffic gaps with confidence and precision, and is backed up by a super-tight turning circle to boot, so parking manoeuvres around town is a doddle.
BYD’s decision to set up the chassis for a soft, long-travel suspension is appreciated, since the Premium takes most bumps and humps in its stride, making this one of the comfier city cars around.
Road and tyre noises are omnipresent, but aren’t not too bad overall by supermini standards, while the Hankook 185/55R16 tyres deliver sufficient grip, even over some rain-soaked roads we endured.
Most of these Atto 1 attributes also translate well at freeway speeds, with the Premium offering ample muscle for overtaking, slick steering responses and a planted chassis feel.
But, once you hit some faster corners, the BYD’s reactive steering, lofty seating and cushy suspension conspire to create considerable body movement, especially through tighter bends, scrubbing the front wheels as it turns wide (understeer).
Yet, press on a bit harder, the Atto 1 can instantly change its attitude to oversteer, feeling darty as weight shifts from the rear, making the steering suddenly too sharp and the car too nervous, Even experienced drivers might hesitate to carry on. And this happened on dry roads.
Of course, the BYD is a city car so not designed for sports-car handling, but it does lack the confidence and control of a hard-driven Mazda 2 or Suzuki Swift. Strangely, it seems more SUV-like than supermini, dynamically.
Most owners won't care, but they will have to live with the infuriating ADAS tune, with inexplicably sudden braking when the adaptive cruise control is on, and lane-support systems that all-too-often tug and bleat endlessly like an agitated goat, becoming too distracting, and requiring far-too-fiddly touchscreen menu diving to silence, especially as they default back on with every restart.
The driver-attention warning is also in a semi-permanent state of nerves, squawking all-too-regularly unless the driver is sat perfectly still, and will easily escalate the danger level to “take-a-break” should you dare move about in your seat. Which would be regularly, due to the latter’s lack of enduring support. A literal and metaphorical pain.
Clearly, then, the Atto 1 can really do with some Australian road tuning and on a number of fronts at that. Until this happens, these are the dark clouds blighting the blue skies that this car’s otherwise sunny disposition delivers with every urban drive on a daily basis.
Or, in other words, stick to the urban jungle.
Tested in 2020, the A3’s been awarded a maximum five-star rating from ANCAP which applies to the facelifted version.
Six airbags and a suite of active safety tech helped contribute to this, though, whether it would pass with five stars under ANCAP’s current assessment protocols isn’t certain.
That’s likely only down to its relatively non-invasive safety warnings and mild assistance with things like lane-keep and speed warnings.
If you’re someone who’s likely to turn off most of the electronic assistance, the A3’s systems are at a pretty good level as standard.
It’s missing some modern kit like surround-view parking cameras but it does have front and rear proximity sensors and things like rear cross-traffic alert.
The Atto 1 debuted in China back in 2023, but this is a facelifted, international-market version evolved mainly for European consumers, so crash-tested by Euro NCAP only last year, and scoring a maximum five-star ANCAP rating.
Note, though, that while the baby BYD includes Autonomous Emergency Braking (AEB) with forward collision warning, lane-departure assist and adaptive cruise control as standard, there is no blind-spot monitor or rear cross-traffic alert. Odd for a city slicker.
Six airbags are fitted, including curtain protection for all outboard occupants, while there are two rear-seat sited ISOFIX anchorage points and child-seat tether points behind each backrest.
Audi offers a five-year/unlimited kilometre warranty, which is about par for a premium brand, but it also offers five years' free roadside assist and the ability to pay to extend the warranty.
Servicing is $2520 for a five year plan, but the extended two years of 'Audi Advantage' warranty is $3250 and comes with unlimited kilometres, roadside assist and covers two services.
Here’s where the BYD slips up a bit.
Yes, it comes with a better-than-industry-standard six-year warranty, but many rivals offer between seven and 10-year coverages, while the Atto 1’s mileage warranty is capped at 150,000km when most others include unlimited mileage. And roadside assistance is only for one year, as well.
Service intervals are every 12 months or 20,000km. Capped-price servicing is available, but no precise figures were available at the time of publishing.
Estimates are from under $200 for the first and third annual services, and from $500 and $650 for the second and fourth yearly visits, respectively. Please check with BYD for updated figures.
Currently there are about 105 BYD service outlets throughout Australia, with 30 more expected by the middle of 2026. This should address one of this brand's biggest concerns – sufficient after-sales care.