Audi A3 vs MG MG4 Urban

What's the difference?

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 MG4 Urban is not only the right car at the right time, perfectly catering to buyers looking to avoid rising petrol prices, it’s also a welcome return-to-form for MG as a brand.

MG is seemingly at its best when it sticks to small cars. It has traditionally excelled with the MG3 and ZS, smaller, more affordable products that keep expectations in check and can win over customers looking for the best bang-for-their-buck rather than simply the best car.

That’s not to say the MG4 Urban isn’t a good car. It offers tremendous value for money, excellent interior space and drives nicely, so anyone who has been considering making the switch to an EV should seriously consider this new arrival.

Note: CarsGuide attended this event as a guest of the manufacturer, with 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.

MG says the design inspiration for the MG4 Urban came from the $100,000 Cyberster. While there are certainly a lot of differences between that roadster and this hatchback, the air-intakes and wheel design are indeed very similar. And I guess the badge is the same too, so there’s that…

But, comparing it to the Cyberster misses the point. What makes the MG4 Urban’s design more interesting is the bits you can’t see. While it shares the same name as the MG4 Hatch, this car has almost nothing in common with it. That’s because this new MG4 Urban is based on the brand’s newer EV underpinnings that debuted on the MGS5 EV.

That means the MG4 Urban is front-wheel drive, whereas the hatch is rear-wheel drive, and because of the way the battery is integrated into the chassis, it creates not only a bigger hatchback but also one with a different shape.

The Urban is more ‘cab forward’ (to use design parlance) meaning a shorter bonnet, which creates more cabin room. It also means there is more boot space because the powertrain is located up front.

MG does a good job with cabin presentation too. It’s another step forward for the brand, improving the overall level of fit and finish from its earlier models, to create a cabin that looks modern and doesn’t feel like it has been built to a price.

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.

As I just mentioned, the cabin is bigger than the other MG4, which creates good space in both seating rows. 

Up front they’ve placed the gear selector on the steering column to create space for more storage in the centre of the car. That means there’s plenty of shelves, cubbies and cup holders to take care of your small (and not so small) items, spread across the cabin.

As for the boot, the switch to a front motor and a smaller rear suspension means a 382-litre boot with all seats up and 1266L if you drop the back seats. Plus there’s a 98L underfloor storage spot, in place of a spare wheel (with a puncture repair kit included instead).

The design of the key controls are simple and easy to use, with a digital display for the instruments ahead of the driver and a 12.8-inch multimedia screen in the centre of the dashboard.

Navigating the menus is relatively straightforward but in a victory for user-friendliness, MG has listened to feedback (and incoming Chinese government regulations) and added some physical controls. There are buttons and a dial for the air-conditioning system and a volume knob for the sound system.

MG made its reputation in Australia by selling some of the most-affordable models on the market, filling the hole left by mainstream brands like Toyota, Hyundai and Mazda as they increased the entry-level prices in their respective line-ups. Something MG itself tried with the HS, QS and U9, as it expanded beyond the once-popular MG3, MG5 and ZS.

The MG4 Urban is a return to form in that sense for MG, with this new small car starting at just $31,990 drive-away. For context, the MG4 Hatch starts at $37,990 drive-away, so this is a much cheaper proposition. That starting price is for the MG4 Urban Standard Range, the Extended Range variant is priced from $34,990 drive-away.

That pricing does not feel accidental from MG Australia, despite what they may suggest when pressed. That’s because the new BYD Atto 2, the direct rival to the Urban, starts at $31,990 plus on-road costs. Even so, BYD has the last laugh, because it offers both the BYD Atto 1, which starts at $23,990, and the Dolphin, which is priced from $29,990 - to undercut the MG4 Urban, even if neither are considered direct competitors.

In terms of specification, both the Standard Range and Extended Range have the same equipment with the exception of the obvious - a bigger battery, and more power from the motor.

Standard equipment highlights include 17-inch alloy wheels, LED headlights and tail-lights, a leather-wrapped steering wheel, PVC seat upholstery, heated front seats, Bluetooth connectivity with wireless Apple CarPlay and Android Auto, in-built navigation and a six-speaker stereo.

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 MG4 Urban Standard Range is powered by a 110kW/250Nm electric motor that drives the front-wheels via a single-speed transmission. The Extended Range has slightly more performance, 118kW and 250Nm, but aside from that they are the same motor.

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 biggest difference between the two MG4 Urban variants is the battery. The Standard Range has a 43kWh battery good for 316km of driving between charging, while the Extended Range gets a bigger 54kWh battery to make it capable of up to 405km.

We didn’t drive the car long enough to get a clear indication of real-world efficiency and range, but it performed well during our drive in suburban Sydney. The steady stop-start traffic gave the battery its best chance to perform well and the early indications are its range is close to claim, at least under the right circumstances. We’ll have to reserve definitive judgement until we’ve had a longer test drive.

What MG was very keen to highlight are the cost savings of buying an EV at a time of sky-high petrol prices. The company made a point that using off-peak electricity, which can be had for just 6c per kW from certain providers, means you can replenish the battery of the MG4 Urban Standard for just $3.44. 

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.

What really stood out about the MG4 Hatch is its rear-motor, rear-wheel-drive layout, which made it a very dynamic and almost sporty car. In my 2023 review I called it “a genuinely enjoyable small car to drive".

The MG4 Urban doesn’t quite leave the same impression. Again, we had only a brief and (appropriately) urban test drive around Sydney’s beachside suburbs, but the MG4 Urban proved competent rather than commendable.

But, let’s be honest, unless you’re looking for driving thrills in the wrong place (affordable, city-focused hatchbacks) the MG4 Urban does the job it is required to do. It’s as nice as any other mainstream hatch to drive from Point A to Point B.

The ride could be a little softer and more compliant, with the suspension feeling too firm at times, but with its electric motor it’s a quiet and relaxed driving experience. The electric motor provides adequate performance too, certainly more torque in less time than you’ll get in a petrol-powered hatch.

Curiously, MG Australia executives said the MG4 Urban was locally evaluated and tuned but could only offer a vague mention of ‘holistic’ changes to better suit it to local conditions, rather than pointing to any specific Australia-developed changes to the suspension, steering or powertrain.

It may be small and cheap, but that doesn’t mean MG has cut corners on safety. The MG4 Urban comes equipped with the MG Pilot and a suite of active safety features, including adaptive cruise control, autonomous emergency braking, lane keep assist, blind spot monitoring, driver attention monitoring and speed limit notification.

The latter two are the most evident, as they provide a steady soundtrack of beeps as you drive along. Take your eyes off the road for more than a few seconds as the driver attention system fires up, while the speed sign recognition gets busy in Australia’s ever-changing speed limits.

While MG has undoubtedly improved the sensitivity of some of these systems compared to other models, they are still more active than rival products. Perhaps more concerning, the speed limit recognition repeatedly beeped to tell me I was in a ‘25km/h’ zone, which is simply not a recognised speed limit on Sydney roads.

Like so many other brands, MG needs to further refine these active safety systems in order to make the driving experience more relaxed and less distracting.

MG says the MG4 Urban has secured a five-star rating from Euro NCAP, which is expected to be carried over by ANCAP. 

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 MG4 Urban is covered by the brand’s 10-year/250,000km warranty, as long as you service it at an official MG service centre. If you don’t get your car serviced with the company directly, your warranty reverts to seven-year/unlimited km coverage.

Servicing intervals are every 12 months or 25,000km and will cost you $1366 over the first five years. The cheapest visit is just $149 but the major service, after four years, is a pricey $472, which does push against the idea that EVs are cheaper to service due to less moving parts.