Audi A3 vs Lexus IS

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.

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.