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.
Large SUVs like the Toyota LandCruiser, Nissan Patrol and Land Rover Defender have dominated in Australia for decades now, however there’s now something new to shake up the segment.
BYD’s luxury spin-off brand, Denza, has launched in Australia with two plug-in hybrid (PHEV) off-road SUVs. The B8, which is the larger of the two, is on test here.
With three rows of seating, a bucketload of standard equipment and a jaw-dropping starting price, the B8 is being pitched as a PHEV alternative to the currently diesel-only LandCruiser 300 Series among other more premium alternatives like the Land Rover Discovery and Mercedes-Benz GLS.
We’ve already driven the B8 over in China and this is the first time we’re getting to test it out on Australian roads, so let’s see how it stacks up.
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 Denza B8 is an incredibly luxurious car that has a lot going for it, including three rows of seating, a 3.5-tonne braked towing capacity and an eye-popping price tag, but it's held back by its overall heft and cumbersome ride.
If you don’t absolutely need the third row of seating, the smaller B5 is arguably the better pick and while it’s also not perfect, it’s a very compelling package and you’ll be saving thousands of dollars in the process.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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.
There’s no way around it, the Denza B8 is a big car. It’s almost 5.2 metres long which makes it larger than a LandCruiser 300 Series and more in line with the likes of the Land Rover Defender 130.
It looks quite boxy and tough on the outside, though it doesn’t have any features that define it specifically as a Denza beyond the inconspicuous badging. There are many angles that are reminiscent of the aforementioned Defender.
The body lines look crisper than the smaller B5, as does the semi closed-off grille and LED light script that connect the big LED headlights.
Unlike the B5, the tailgate-mounted spare wheel is much more prominent in the B8 and this therefore exaggerates its heft, not in a good way.
Inside, it’s luxurious and high-end with lots of visual appeal. I particularly like the amount of soft-touch finishes around the cabin and the overall lack of glossy piano black.
While luxurious, there’s also a rugged edge to the interior. This is most present in the large grab handles which you do need to use when getting in and out.
The amount of physical buttons and switches inside is a nice touch as you don’t need to relate on the touchscreen all the time. The fact the gear shift lever rises up when you turn on the car also adds to the special, luxurious feel.
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.
Hopping into the B8 you need to acquaint yourself with how the flush door handles operate. Generally they pop open when you unlock the car but sometimes they can be a little delayed.
Also inside the car there are electronic door release buttons which are nowhere near as intuitive as regular door pull handles. Sure you’d likely get used to this over time but you’ll need to explain it to new passengers all the time.
The seats in Chinese cars usually look nice but aren’t that comfortable or supportive for long-distance journeys. The B8’s are the opposite, offering great support and almost limitless adjustability. Adding to this is the standard heating, ventilation and massage functions.
Ahead of the driver is a leather-wrapped steering wheel which feels nice and has plenty of physical buttons with a tactile click when pressed.
Behind this, the digital instrument cluster is clear and high-resolution and offers a number of different layouts and informative pages you can cycle through. This allows you to customise the display.
In the centre of the dashboard is the mammoth 17.3-inch touchscreen multimedia system which is the largest central screen I have seen in a car to date. It’s a big screen for a big car and Apple CarPlay satisfyingly takes up the entire screen.
Thankfully, the screen is snappy and has a native user interface that is easy to navigate around without getting lost. I particularly like the swipe-down control centre menu that allows you to change key settings without diving into sub-menus.
My only hassle with the screen is I struggle to reach the far left-hand side due to its overall size. Perhaps a trackpad would solve this.
As I noted previously, the amount of physical switchgear around the cabin makes adjusting key functions easy. Examples include physical buttons to change the drive mode, activate the surround-view camera, adjust the suspension position and switch between EV and hybrid driving.
In terms of storage up front there are two non-ventilated 50W wireless phone chargers, two cupholders with adjustable depths, a shallow storage section under the centre console, plus a fridge/hotbox under the centre armrest.
Moving to the second row and the luxury continues. The seven-seat model features a three-seat bench that three people can easily fit across as the floor is flat, whereas the six-seat model gets uber-plush captain’s chairs.
Regardless of variant, there’s plenty of room in the second row, even for adults.
Second-row amenities include a small screen on the back of the centre console box that allows you to change the climate control and change the seat heating/ventilation, among other functions.
There’s also a button that opens the fridge/coolbox so the second-row passengers can access it. This is a nifty touch though you’d want to make sure small fingers don’t get caught as the anti-pinch function isn’t the strongest.
A feature that’s unique to the six-seat version is a massaging function on the second-row captain’s chairs. This is a very cool touch that no other SUV at this price point offers.
Accessing the third row in the six-seat version is rather easy as you only need to walk down between the captain’s chairs. It’s also simple enough in the seven-seat version as long as you access it from the kerb side.
Third-row space is decent for adults, but this shouldn’t be surprising as the B8 is such a hulking vehicle. The backrests also recline allowing for extra comfort. Amenities include air vents in the headliner, USB-C ports and scattered storage. It’s enough for seats that will likely only get occasional use.
Around the back the B8 has a side-hinged tailgate which is a little problematic as you need to allow space for it to open up in parking spaces. This is hard when the car is already 5.2m long…
With all three rows upright there is 147L of boot space, which is fine, but this expands to a much more usable 920L with the third row folded.
The boot space is square and usable, though there is a large load lip which is body-coloured and would easily get scratched if you drop something on it. Not the best in a family-oriented vehicle.
Boot-related amenities include buttons to electronically fold the second and third row seats and lower the suspension to make things easier to load into the boot, a 12V socket, scattered hooks, as well as a small underfloor section to store the changing cables.
Although it stands out like a sore thumb, it’s great to have a full-size spare wheel on the back of the tailgate. This is very helpful in the unlikely and unfortunate event you get a puncture.
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.
The 2026 Denza B8 line-up starts at $91,000, before on-road costs, for the seven-seat version, which is strategically just under the Luxury Car Tax (LCT) threshold, whereas the flagship six-seat version is $97,990, before on-road costs.
Despite nearing $100K, this notably undercuts key rivals like the Toyota LandCruiser 300 Series and Land Rover Defender by a considerable margin, especially once you take the level of standard equipment into account.
The B8’s closest rival is currently the slightly smaller GWM Tank 500 PHEV which is priced even more competitively at $77,990, drive-away.
As a base there are 20-inch alloy wheels, adaptive LED headlights, soft-close doors, a 12.3-inch digital instrument cluster, a 17.3-inch touchscreen multimedia system, 18-speaker Devialet sound system, tri-zone climate control, leather upholstery, plus heated and ventilated seats in the first and second row.
Moving up to the six-seat version brings second-row captain’s chairs with adjustable legrests and a massage function, as well as a digital rear-view mirror, head-up display and Nappa leather upholstery.
This amount of standard equipment in a car that’s under $100K is wild and should definitely be enough to put in your consideration list if you’re after a big, three-row SUV. The smaller B5 offers similar levels of specification but goes without the third row.
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.
Power comes from a plug-in hybrid set-up combining dual electric motors and a 2.0-litre turbo-petrol four-cylinder engine.
Total system outputs are a meaty 425kW and 760Nm. They need to be, as the B8 has a kerb weight of 3.3 tonnes. Despite this, Denza claims it can still do the 0-100km/h sprint in just 4.8 seconds.
Power is sent to all four wheels with a rear mechanical diff lock as standard across the line-up. A front diff lock is only offered on the six-seat version.
What’s most surprising about this big beast is it offers a segment-meeting 3500kg braked towing capacity. It also has up to 700kg of payload, depending on the variant.
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.
Feeding the dual electric motors is a 36.8kWh lithium iron phosphate (LFP) battery. Denza claims it allows for an electric range of 115km, according to NEDC testing.
The battery can also be used as a power source for appliances using vehicle-to-load (V2L) functionality at rates up to 6.6kW.
AC charging is offered at rates up to 11kW, whereas DC fast-charging is offered at rates up to 120kW.
Additionally, there’s a 91L fuel tank. Denza claims this allows the B8 to have a total range of 1040km (NEDC).
Fuel consumption depends on how often you charge the battery. Denza claims the B8 will use 2.0L/100km from 100 to 25 per cent battery charge and 9.9L/100km under 25 per cent battery charge, both according to NEDC testing. Regardless, this is better than all similarly sized petrol- or diesel-powered SUVs.
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.
Behind the wheel, the Denza B8 primarily acts as an electric vehicle (EV), meaning it’s largely quiet inside the cabin when driving around normally.
Once the battery charge gets down lower, the petrol engine typically switches on to top up the battery. It largely acts as a generator and a lot of the time you can’t tell whether it’s on or off.
You’ll likely only notice it if you floor the accelerator or go up a steeper hill. Even then the engine largely stays quiet and in the background.
When the battery charge gets down low enough and you gun it, the petrol engine can directly power the front wheels. This is rare, though, because the car leaves at least 25 per cent battery charge in reserve.
With 425kW and 760Nm thanks to the dual electric motors and 2.0-litre turbo-petrol engine, the B8 is far from slow. In fact, for a 3.3-tonne beast it absolutely hauls thanks to the instantaneous torque the electric motors provide.
However in the standard drive mode there is a noticeable input lag from when you push the accelerator pedal hard and when the car starts accelerating. This is reduced in the 'Sport' drive mode.
Although the B8 may produce lots of power and torque, it feels its weight. When you accelerate hard it pitches back dramatically, much like the Jeep Grand Cherokee. It’s much more pronounced than in the smaller B5, but still smile-inducing.
As standard, the B8 line-up gets an adaptive hydraulic suspension system that is claimed to be able to self-level the car. Despite this, the B8 gets a considerable amount of body roll regardless of which drive mode you select.
Many Chinese cars have floaty, comfort-oriented suspension tunes over firmer and a more dynamic-feeling ride, and the B8 is no exception. It feels like a 3300kg+ SUV.
The kicker is, like many body-on-frame vehicles, the ride gets busy on harsher roads with more frequent bumps. As a passenger you get jostled about in the cabin.
The steering tries to disguise the overall heft of this SUV but as a result it can feel overly assisted and vague at certain points. Depending on the drive it either artificially adds or reduces resistance.
Unlike the related BYD Shark 6, the B8 gets diff locks and a low-range mode which uses a clutch pack on the rear electric motor to allow for more controlled, low-speed crawling.
The adaptive hydraulic suspension allows the car to be lowered down or lifted up. In its highest mode there is a 890mm maximum wading depth.
Interestingly, compared to the smaller B5, the B8 feels more sorted off the beaten path. Its added heft helps round off bumps more easily, plus there’s added momentum behind it.
Lastly, in terms of noise, vibration and harshness (NVH), the B8 is a very quiet car to drive. As I mentioned above, the electric-first nature automatically makes this a quiet car.
Surprisingly, given the B8 is a huge 3.3-tonne box on wheels, there is very little road and wind noise. It seems Denza has put a big emphasis on sound insulation.
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 Denza B8 received a maximum five-star ANCAP safety rating based on testing conducted on the related B5 in 2025.
There are 14 airbags which notably includes coverage for the third row, plus autonomous emergency braking (AEB), blind-spot monitoring, front and rear cross-traffic alert, adaptive cruise control, front and rear parking sensors and a surround-view camera.
The majority of the active safety systems do a good job, remaining in the background and only activating when absolutely necessary. However, the driver attention monitor is over zealous and struggles to detect your eyes when you’re wearing sunglasses.
Thankfully, you can turn this off using the touchscreen but it needs to be done every single time you drive the car.
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.
The Denza B8 is covered by a six-year, 150,000km warranty, whereas the battery pack is covered by an eight-year, 160,000km warranty. There’s also three years of roadside assistance.
This isn’t a standout warranty in the mainstream market, though compared to premium marques it’s a notable step up.
Logbook servicing is required every 12 months or 20,000km, whichever comes first.
The first five years' of servicing totals $3762, which averages out to just over $750 per service. This is just a tad more than the smaller B5, but it’s much cheaper than premium rivals.