Audi RS3 vs BMW M235i

What's the difference?

The Audi RS3 is a special hot hatch and sedan I’m so glad I experienced before its five-cylinder engine is inevitably retired due to emissions regulations. Full of character and charisma, this car is far from a rational purchase, pitched at boy racers who don’t want to grow up just yet.

From a value perspective, too, while the asking price has crossed the six-figure threshold and the option prices add thousands, it’s still much cheaper than the Mercedes-AMG A45 S. Make of that what you will.

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

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

Audi has made some subtle tweaks to the RS3 that has somehow made this snarling hot hatch look even angrier.

Up front there’s a new fascia featuring more open sections, which in turn improves air flow. A black styling package is now standard so it almost looks like the entire front is open and ready to eat you alive.

The matrix LED headlights now have a darkened finish which adds to the menacing look. There are new signatures, including a special chequered flag one for the RS3 which looks top notch.

Around the side it surprises me just how much wider the front is compared to the rear. Both have big, muscular haunches, but it shows this hot hatch is a bit of a bulldog. I’m a big fan.

These haunches stand out even more when you opt for the new Daytona Grey Matte exterior paint. While the extra $11,400 for the privilege makes me wince, it looks sexy on this car.

The standard 19-inch ‘Y-spoke’ alloy wheel design remains unchanged from the pre-update car, though there’s a new, optional ‘cross-spoke’ design that looks delicious (and tricky to clean).

At the back there’s still the classic RS dual exhaust tip motif which looks mean and it’s surrounded by a new black rear diffuser with a motorsport-inspired vertical red reflector in the centre.

The new LED tail-light signature with the vertical slats is so clean and neat. It looks particularly great in low-light situations or at night.

Inside, the biggest change is the new RS steering wheel with the flat top and bottom. As standard it’s wrapped in perforated leather, but with the optional RS Design package it’s wrapped in 'Dinamica' synthetic suede. I much prefer the standard leather-wrapped unit as the Dinamica likely won’t last in the long run, especially if you’ve got clammy hands.

Other changes include more interior ambient lighting on the door cards through small slits, as well as a new shift-by-wire gear selector. The digital instrument cluster and touchscreen multimedia system set-up remains unchanged which is no bad thing because they look fantastic.

It’s disappointing Audi has stuck with an extensive use of piano black on the centre console because this gets dusty and grimy very quickly, and then can get scratched easily when wiped clean. It now also features on the steering wheel buttons, which are frequent touchpoints.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

The RS3’s standard sport front seats are deliciously comfortable and offer plenty of electric adjustment. This means people of any size and stature should be able to find their desired seating position.

Thanks to the electric lumbar there’s also a massage function for the front seats. This is pretty cool to flick on and relax into, but I wish the massage was a little stronger.

While the new steering wheel looks cool interacting with the buttons on it can be a bit of a hassle. They’re touch-sensitive but do have a satisfying click if pressed harder.

There were moments where I accidentally clicked on the buttons during intensive track driving as my hands were at the nine and three o’clock positions. Not the best thing when you’re meant to be focussing.

The digital instrument cluster offers so much configuration you won’t know what to do with yourself. There’s even a new rev counter design especially for the RS3 which looks very cool.

Moving across, the touchscreen multimedia system is classic Audi. It’s easy to navigate around and hard to get lost in the sub-menus. There’s also wireless Apple CarPlay and Android Auto connectivity which is virtually a given now.

While you need to use the touchscreen for a number of features, I appreciate how Audi has retained so much physical switchgear up front. It’s particularly handy to have physical toggle switches and a small digital display that’s separate from the touchscreen for the climate control.

Another piece of physical switchgear I like up front is the rotary dial for the media controls on centre console. It’s much like an iPod, allowing you to change the volume if you rotate your finger on it like a click-wheel. Major throwback vibes.

In terms of storage up front, it’s decent but not outstanding. There are two cupholders, a wireless phone charger, a centre console box as well as a lockable glove box.

Moving to the second row, it’s clear it’s more for the sake of it, rather than having a space you’d want to use all the time. At a leggy 182cm tall, I have minimal legroom behind my own driving position.

With headroom, it’s adequate in the hatchback and not great in the lower-slung sedan. I need to kink my neck in the latter to fit, which isn’t comfortable.

The second-row bench seat is comfortable, offering enough support for short-to-medium trips. I wouldn’t want to get stuck back there for too long, however.

In terms of amenities, there are air vents mounted on the back of the centre console with a dedicated third zone of climate control, two USB-C ports, nets on the seat backs as well as a fold-down centre armrest with cupholders.

At the back there’s a power tailgate for the hatchback, however the sedan only has a power-opening boot lid. This means you need to manually shut it, which isn’t uncommon for sedans.

Boot space in the RS3 is a weak spot due to all the componentry for the all-wheel drive system and the tricky rear clutch set-up. There’s only 282L for the hatch and 321L for the sedan, which isn’t much.

In reality, however, the boot space is still usable. It’s fairly square and there’s barely any boot lip, meaning you can slide things in and out with ease.

Boot-related amenities include a netting system to keep things from sliding around, a light, some hooks and a 12V socket. There’s also a parcel cover for the hatchback.

Unfortunately there’s no spare wheel of any kind under the boot floor in the RS3 as this is where the 12V battery lives. Instead there’s a tyre repair kit. This isn’t uncommon in performance cars, though it’s disappointing if you frequently travel in the country, away from tyre repair shops.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.

From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.

Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.

You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.

From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.

Many of those items are available with a $6700 Enhancement pack on the lower grades.

These more-or-less line up with rival premium small sedans.

Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!

Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.

Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.

The Audi RS3 is still powered by a 2.5-litre turbocharged five-cylinder petrol engine which produces an unchanged 294kW of power and 500Nm of torque.

This is mated to a seven-speed dual-clutch automatic transmission with drive sent through an all-wheel drive system.

Audi claims both versions of the RS3 can do the 0-100km/h sprint in just 3.8 seconds, which is technically 0.1 seconds faster than a Mercedes-AMG A45 S. Top speed is electronically limited to 250km/h.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

The Audi RS3 sedan is claimed to consume 8.2L/100km, whereas the RS3 hatch is claimed to consume 8.3L/100km, both on the combined (urban/extra-urban) cycle (ADR 81/02).

Both body types come with a 55L fuel tank and require a minimum of 98 RON premium unleaded petrol.

During my testing I saw an average of 9.6L/100km according to the trip computer. We did around 200km of higher speed driving heading east out of Melbourne, including some spirited sections.

Our on-test figure translates to a range of 570km on a full tank of petrol.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

Spoiler alert, it’s a cracker.

Starting up the RS3, you’re instantly aware you’re behind the wheel of something special. Audi has made the start-up more “emotional” with this update and also “optimised” the exhaust flap control for more five-cylinder growl across a wider rev range.

When you’re on the boil, this five-cylinder sounds so fantastic. It’s the clear centrepiece of this car and I’m so happy Audi has continued to offer it.

However, thanks to the addition of a petrol particulate filter (PPF) with this latest-generation model it sounds a little muted in everyday driving. Call me a boy racer, but I want more noise.

Staying on the engine, it’s full of character and gets this small hatch and sedan moving along with ease. Even though the outputs are unchanged with this update, it’s still more than enough; 0-100km/h in 3.8 seconds shows it's more than enough.

The seven-speed dual-clutch automatic transmission in this car keeps the acceleration feeling relentless with snappy gear changes at a moment’s notice. It’s particularly fun taking control of moving between the ratios with the paddle shifters.

In slow-moving traffic, however, the dual-clutch can get a little lost and stuttery, which is a classic characteristic of this kind of transmission.

As standard the all-wheel drive system remains neutral, keeping the front and rear balanced and in check. However, if you flick to the ‘Dynamic’ drive mode you get more rear-biased action which is fun when you exit a corner with some extra heat.

There’s also still a ‘RS torque rear’ drive mode which is essentially a drift mode. Unfortunately we didn’t get to sample this during the launch program.

Additionally, there’s an ‘Individual’ mode that allows you to choose your own destiny. You could spend hours here fine-tuning your desired drive mode which is both great to see but complete nerd-core.

Like the pre-update car, there’s an electronically controlled multi-disc clutch on the rear axle which actively splits the torque between the rear wheels. However, it’s been "optimised" to allow for quicker cornering.

While this is hard to gauge without testing the pre-update and current car back-to-back, the RS3 is so dynamic it feels like you only scratch the surface on public roads. Thankfully we got to see how far we could push it on Haunted Hills, which is a fantastically complicated hill climb circuit in eastern Victoria.

In terms of the steering, there’s a progressive rack as standard which ramps up the steering intensity the more you turn the wheel. In practice, this means the lock-to-lock ratio is very short, making it easy to link up tight corners.

It also makes it easy to navigate tighter driving scenarios, like parking, though it disguises how wide the turning circle is. Expect to do three-point turns fairly often.

For the suspension, the RS3 has adaptive dampers set-up that generally errs on the sportier and firm side. There is a ‘Comfort’ mode which irons out some bumps, but larger road imperfections still transmit harshly into the cabin.

It’s also worth noting at higher speeds there’s a considerable amount of road and tyre noise that comes into the cabin. Thankfully the Sonos sound system does a great job at drowning this out.

Lastly, the safety systems in this car are generally user-friendly, though the lane-keep assist can be a little too hands-on, especially on narrow roads with poor lane markings. Thankfully you can switch this off by pressing and holding a button on the end of the indicator stalk.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.

For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.

No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.

Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.

Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.

Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.

Like all Audis, the RS3 is covered by a five-year, unlimited-kilometre warranty. There’s also five years of roadside assistance.

Logbook servicing is required every 12 months or 15,000km, whichever comes first.

You’re able to purchase a five-year pre-paid service package for $4010. That averages out to $802 per service, which seems like a lot until you see how much Mercedes-AMG charges to service an A45 S.

RS3 owners can also purchase two-year packages to extend the warranty, roadside assistance and servicing coverage. This allows new RS3 owners to have warranty coverage for up to nine years and it’s transferable to future owners.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.