2022 Audi A3 vs 2021 Lexus IS

What's the difference?

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.

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

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.

Look closely and quite a lot has changed. This is really a story of doing a facelift right. Lexus has kept all the great-looking bits of the car that launched in 2013, like its striking side profile and angular accents, while dumping most of its least popular elements like the spidery front light-clusters and busy front splitter, in favour of something more refined and conservative.

It even adds some new flair in the rear three-quarter, with dramatic LED light-clusters working their way into a trendy highlight strip across the boot lid.

These changes all add up for a much tougher, sportier, and nuanced design compared to the outgoing car. One that manages to make an eight-year old design look as contemporary as ever.

I even liked our test car in its plain black shade, although I'm less sure about those conservative-to-a-fault, almost Camry-esque alloy wheels.

On the inside, sadly not a whole lot has changed. The busy design looked dated when this generation of IS launched in 2013, and it still looks dated now.

The visual assault of buttons, toggles, displays, textures, and trims is a lot to take in, and makes the cabin feel smaller than it is.

It probably didn’t help the sensory overload of this car’s interior as I hopped out of the stripped-back interior in the Tesla Model 3 I had the week before.

My less-than-impressed brother, a student of design, described the IS’s interior best when he told me “It’s a bit maximalist, don’t you think?”

If nothing else, at least Lexus hasn’t blatantly imitated anyone else when it comes to its interior, but the brand remains firm on dorky design items like the laptop touchpad, redundant drive-select dial, and odd vacant panels under the climate unit which do it no favours.

A welcome upgrade for the 2021 model year is the new media screen, a highlight piece perched atop the dash. It’s bright, has excellent contrast, and doesn’t seem to fall victim to glare.

The Apple CarPlay support I used was seamless and sharp and made the most of the available real-estate in its widescreen layout.

I somehow didn’t mind that the instrument cluster in this base car is analog. It almost suits the IS’s character better than a digital set-up would. Also offered is a small information display between the dials which I used for monitoring the hybrid drive.

A final note on the IS’s design. The fit and finish is quality, inside and out. It leaves you with an impression that this is an immaculately built vehicle, one that should be a must for all luxury cars, and always a strong point for Lexus.

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.

Well, the IS is a sedan, so it doesn’t quite have that high-riding appeal of an SUV, and for this update it has even leaned further into its low-slung proportions with a roofline that descends a further 15mm and a boot lid which is 31mm lower overall.

As with the previous car, the interior is quite closed-in thanks to that busy dash design and large centre console. Rather than feeling claustrophobic though, it is best described as cosy, with lots of plush finishes throughout the doors and centre stack befitting a luxury nameplate.

Adjustability is great for the front two occupants and there are two large bottle holders between the seats, a large but shallow console box under the armrest, bottle holders with adjoining bins in the doors, and a smallish glove box.

That’s about where storage ends though, with no extra trays or bins in front of the oddly placed shifter, just an awkwardly finished plastic panel where it feels like a little tray or storage cutaway should be.

The touchpad for operating the media screen joins an unnecessary drive-select cluster in eating up centre console space where there could be more storage.

The rear seat is quite limited on space despite being lavishly trimmed. I fit behind my own (182cm/6'0") driving position with little knee or headroom to spare.

Again, it’s cosy and very comfortable, but if you're taller or wider than me you may run into issues.

The centre rear seat is all but useless for adults, with the IS’s rear-drive architecture necessitating a huge transmission tunnel that almost comes as high as the seat base itself.

Storage is limited to pockets on the back of the front seats, small bins in the doors that double as handholds, and a drop-down armrest with two bottle holders.

There are no power outlets for rear passengers, but there are dual adjustable air vents.

Boot space is 450L which is a little small for the class. It’s impressive the hybrid only managed to lose 30 litres compared to petrol-only IS variants, though, so best to count your blessings.

The largest CarsGuide travel case easily fit in the wide but short available space.

To be precise the variant we’re looking at here is the IS 300h Luxury. It’s the base IS trim with the hybrid powertrain and it wears a before on-road costs (MSRP) of $64,500.

Base car or not, the new IS is very well specified. Now standard are 18-inch alloys (up from 17s), full LED headlight clusters, eight-way power adjustable front seats, dual-zone climate control, 10-speaker audio system, and importantly a brilliant new 10.3-inch multimedia screen with widescreen Apple CarPlay, Android Auto, built-in navigation, and DAB+ digital radio support.

Keyless entry and push-start ignition also continue to be offered, as well as a leather-look interior trim which in our car was in a rather contrasting 'Ochre' colour option.

Our IS 300h was also fitted with the creatively named ‘Enhancement Pack 1’ which adds an openable moonroof for $2000. The significantly more expensive ‘Enhancement Pack 2’ ($5500) adds the moonroof alongside 19-inch alloys, upgraded LED headlights, interior ornamentation, scuff plates, a panoramic reversing camera, 17-speaker premium audio, ‘leather-accented’ interior trim, ventilated front seats, and an electric rear sunshade.

These packs are seemingly largely unnecessary but are also very cheap for a brand at the premium end of the market.

Lexus has made pretty much all of its high-end active safety equipment standard on this base ‘Luxury’ for 2021, alongside some previously unavailable tech which we’ll take a look at in the safety section of this review.

At this price the Lexus IS 300h goes into battle against the Mercedes-Benz C 200 ($66,900), BMW 320i ($70,900), Audi A4 35 TFSI ($55,900), and the ever-looming threat of Hyundai’s Genesis, which offers its similarly-sized G70 in base form at $59,300.

Some of these base-spec rivals are cheaper, some are more expensive, but did you notice none of them are hybrids?

Access to Toyota’s affordable and popular hybrid drive is a real point of difference for the Lexus brand, and we expect it’s a key drawcard for the loyal customer base. More on that later.

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 IS 300h does stand out from the luxury sedan crowd by offering a hybrid drivetrain at a reasonable price. Some rivals offer plug-in options further up the price scale cementing them as a niche option, but the beauty of this Lexus is its very mild $3000 price jump over the base petrol car.

The base car’s 2.0-litre turbo is dumped in favour of a 2.5-litre non-turbo Atkinson-cycle four-cylinder hybrid set-up similar to the one proving popular in the Toyota Camry and RAV4.

The petrol engine produces 133kW/221Nm on its own, and the electric motor produces 105kW/300Nm. Toyota says the “combined system output” of this is 164kW.

Either way, that's less than the base 2.0 turbo. The 300h also swaps out an eight-speed torque converter automatic in favour of a continuously variable transmission. Rare in a rear-wheel drive car.

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.

As you might hope this hybrid IS has an astoundingly low official/combined fuel consumption rating of 5.1L/100km.

I was pleased to find that after a week of mainly urban driving conditions, our IS was returning a figure of 6.9L/100km. Not bad at all, especially for a class where fuel consumption can get a little out of hand with turbocharged engines or V6s.

Of course, using the hybrid system to your advantage over the long term will get this number much lower, as I discovered on my long-term test of the Toyota Corolla hybrid which essentially uses a smaller version of the same system.

Certainly, if fuel consumption is a high concern, you’re better off with this car than the top-spec V6 (IS 350) which will easily see consumption enter double digits.

Lexus recommends a minimum RON rating of 95 for the IS 300h, and the fuel tank is 66 litres regardless of variant, giving the hybrid an impressive theoretical range of around 1000km.

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.

There is no doubt the IS 300h is capable. You can feel it through the car’s solid rear-drive underpinnings, silky smooth steering, and reactive chassis.

What this car doesn’t offer is excitement in quite the same sense as many of its rivals. That’s down to this hybrid’s drivetrain. It just doesn’t have that powerful follow-through in the same way turbocharged BMWs or Audis or Mercedes do.

If it’s that 'sports luxury' experience you’re seeking better off looking to the base 2.0-litre turbo or the V6 and their eight-speed automatics.

The 300h does offer something a bit different. The gentle refined efficiency of Toyota’s signature hybrid system in a luxury rear-drive package that’s smaller than this car’s ES bigger brother.

While it may feel capable thanks to the lighter suspension components and altered track that the brand has committed to for this update, the hybrid drive matches this car’s softer character brought about by its gentle suspension tune and light steering.

This is an easy car to drive around a city, it filters out bumps nicely, while offering near silence in the cabin and breezy steering for every day scenarios like manoeuvring in tight parking lots.

The CVT auto and instantaneous torque available from the electric motor make it best at traffic speeds, being both reactive and predictable, with silent acceleration when inching forward at the lights or cruising along at 50km/h.

As you might expect though, the wheezy Atkinson cycle engine and CVT conspire for a noisy and less than engaging experience under heavy acceleration.

It’s not as though you’re rewarded with particular vigour either, with this combination being a bit sluggish when a lot is asked of it.

It loses its reactivity and refinement at higher speeds or in the corners on country roads as the transmission elastically tries to keep up with the demands of the driver.

Still, few luxury sedans are quite as purpose-built for the toils of a city, and if you want to get drawn into this car’s hybrid drive antics, it’s easy to make a game out of saving fuel by trying to rely on its low-speed electric motor capability.

Really then, it leans into its urban luxury appeal. A luxury sedan for the streets of Tokyo. An ideal car in this class for the urban environment.

If you don’t care for the thrill of a turbocharger or frequently seek to explore the twists of your nearest B-road, you could do worse than the comfort and ambiance the 300h offers.

A full active safety suite is now standard across the IS range, including freeway-speed auto emergency braking with pedestrian detection (works during the day and at night) and cyclist detection (works during the day only), and a new intersection braking feature, lane keep assist with lane departure warning, blind spot monitoring, rear cross traffic alert with reverse auto braking, traffic sign recognition, adaptive cruise control, and auto high-beam assist.

There is also an auto SOS function, as recently added to the Toyota Yaris Cross, which automatically triggers if an airbag is deployed. On the topic of airbags, every IS has a thorough suite of 10 (dual front, dual side, quad head, dual front knee).

This all adds up with the standard array of stability, brake, and traction controls for a maximum five-star ANCAP safety rating, although the IS was last assessed way back in 2016.

The IS is built in Japan.

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.

Lexus gets slightly ahead of the luxury pack with an extra year of warranty. While BMW and Audi still sit on three, Lexus offers four, but it is limited to 100,000km and is still outdone by Mercedes-Benz and Korean newcomer, Genesis, offering five-year/unlimited kilometre promises.

The IS has capped price servicing fixed at $495 for the first three years of ownership with roadside assist, and the brand will even pick up and drop off your car, or offer a free loan car during every 12 month or 15,000km service.

It’s worth noting that German rivals offer pre-paid service packages out to five years, and Genesis is trying to make a splash with free servicing.

Lexus does offer a luxury ownership program dubbed ‘Encore’ which includes invites to experiences and certain partnerships with restaurants and the like to keep potential owners enticed.