Audi RS3 vs Lexus Lm350H

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 Lexus LM is going to be a niche model. This was not designed to appeal to people that may have bought a Toyota Tarago back in the day, or even a Kia Carnival now.

It has a specific purpose for ferrying people around in absolute comfort and at that, it succeeds in a big way.

It’s just a bonus that it’s great to drive.

Welcome to the automotive equivalent of a business class airline suite.

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

Look, people movers are not considered the sexiest of automotive body styles, but that’s changing.

The Kia Carnival and Hyundai Staria are examples of good MPV design.

And the Lexus LM steps it up again. 

It is based on Toyota’s TNGA-K architecture that underpins a bunch of Toyota and Lexus models, including the Lexus RX, and it measures a whopping 5.1 metres long and has a three-metre wheelbase.

It shares its underpinnings with the latest generation Japanese-market Toyota Alphard, which is a cult hit in Australia among the grey import set.

The front-end design is bold, with the latest take on Lexus’ big ‘spindle grille’, pinched slimline headlights and a stubby nose. 

I am a big fan of this design. It is far more than a box on wheels and it has quite a bit of presence. 

The interior design up front is modern Lexus, with a few familiar Toyota touches, and while it’s not exactly minimal, it’s still visually appealing.

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.

While most of the fun happens in the second row of the Lexus LM, there is a lot to like in the front compartment.

The dash is dominated by a large touchscreen that houses Lexus’ latest multimedia setup. The logical menu and uncomplicated sub-menus ensure this is an easy system to navigate. Speaking of, the in-built sat-nav is one of the better systems I have experienced. 

Comfort isn’t just the domain of the second row - the driver’s seat is very supportive and comfortable, with power adjustment.

There’s plenty of glass including a smaller front quarter window that helps eliminate front blind spots, so forward visibility is exceptional. Rearward visibility is aided by the digital rear-view mirror that is designed to ensure privacy for second and third-row occupants. You don’t want the chauffeur spying on you while you’re sleeping, do you?

The other big tick for me is the driving position. Other people movers, namely the Hyundai Staria and Mercedes-Benz EQV, have very low window lines and it leaves you with a feeling of sitting on the car, rather than in it. I am sure it helps with extra light and it probably makes it easier for kids to see out of, but from a driving perspective, I find it a little disconcerting.

But the LM has flipped that. The front compartment is designed in such a way that it feels like a cockpit that you’re ensconced in. This helps the driver feel more connected with the car, and in the LM it feels like you’re sitting in the driver’s seat of a sporty sedan, not a five-metre bus. Very well done, Lexus.

And now to the main event - the second row.

Where to begin. Let’s start with space. Because there is so much of it. Unsurprisingly given the seating layout, there is an unending amount of head, leg, knee, bum, shoulder and whatever-else room. I can’t imagine anyone complaining about space back there.

Also, getting in and out is a breeze thanks to the sliding power doors on both sides. These can be opened from the front seat, and via several buttons in the rear.

Those captain’s seats are plush. Not quite Benz S-Class plush, but still.

They are adjustable six ways - power adjustable, of course - and they’re heated and ventilated. They recline almost flat, too, if you need a nap on the way to the country estate. And while you do that you can look up through the split sunroof, or close the shade a number of ways.

Is there a massage function? Of course there is a massage function. And it’s not bad. You can choose two settings - weak and firm.

Adding to the feeling of a business class airline seat, there is a fold-out table in the armrest, although it’s a smallish one. And there is dual-zone climate control in the rear.

There is a roof-mounted control panel for things like climate, sunshades and sunroof blinds, but much of this can also be controlled by the Apple iPhone-like devices clipped into both rear seats. These are closer to the seats, so it is easier to access than the roof.

Another function in the device is the Climate Concierge that features different modes - Dream, Relax, Focus, Energise. Depending on which one you choose, it alters the seat settings, massage, climate and lights to suit.

I love the massively wide side windows that are tinted (or privacy glass), too.

Other amenities include map pockets, knee and roof-mounted air vents and a 14.0-inch display screen that retracts from the roof and connects to an HDMI cable, allowing you to watch whatever you want.

The third row is not as appealing as the second. It is technically a three-person row, but the width and the fact that it has a sizeable gap in the centre suggests that this is best thought of as a six-seater van.

The seats are not as plush of course, so you might not want to spend too much time in that row unless you are a small child. But you do get USB-C ports, cupholders, air vents, lights, sunglasses holder, power side shades and grab handles.

Getting in and out of the third row can take a while. It’s all power adjustable, so you don’t have to lift anything heavy - but it takes a while for the second row seats to move forward and up.

With all seats in place the cargo space is limited. In fact, it’s just 110 litres.

That’s similar to what you get in a seven-seat SUV. But it did fit all our overnight luggage easily.

Drop the rear row and that expands to a maximum of 1191 litres in the 350h or 752 litres in the 500h.

All grades have a space-saver spare wheel.

From launch there will be two versions of the LM350h Sports Luxury on offer - front-wheel drive and all-wheel drive, priced from $160,888 and $165,888 before on-road costs respectively.

They both have seven seats across three rows and share the same four-cylinder hybrid powertrain, but an even more high-end version is on the horizon.

The LM500h will land in January 2024, priced from $220,888, and it adopts a newer more powerful hybrid powertrain. Something else that sets the LM500h apart is the seating layout - it is a four-seater. Behind the driver and front passenger compartment are two big captain’s chairs that recline flat if required. Decadent luxury. Or so the pictures suggest. We will have to wait until the New Year to sink into the sumptuous seats.

Given the positioning and interior layout, the LM will probably not appeal to people looking at a Kia Carnival, or who would have opted for the departed Toyota Tarago. It will, however, appeal to large families that aren’t short of a dollar, airport limo operators, and even as tourist transport.

Thankfully, there’s a substantial amount of standard gear fitted as standard in the LM.

The only difference in spec between the two 350h grades is the addition of all-wheel drive. Otherwise you’ll find keyless entry and start, front heated seats, automatic retractable side steps, power opening side doors, rear privacy glass, a pair of sunroofs, and semi-aniline or L-aniline upholstery.

Tech-wise, there is a digital rearview mirror, and a 14.0-inch touchscreen, a 12.3-inch digital instrument cluster, a head-up display, seven USB ports, a smartphone charger and a rear 14.0-inch multimedia display.

The 500h adds niceties like a separation partition with elevating and dimmable glass, that doubles as a 48.0-inch widescreen display to watch films and TV, or take conference calls with. It also gets two partition glove boxes, a pair of umbrella holders, two second-row phone chargers, a 23-speaker Mark Levinson 3D audio system and more.

In terms of rivals, there really aren’t many other luxury people movers on the market. Aside from the Mercedes-Benz V-Class and all-electric EQV, there are higher-grade versions of the Volkswagen Multivan, and the LDV Mifa 9 EV.

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.

There are two hybrid powertrains available. Coming next year, the LM500h combines a 2.4-litre turbocharged petrol engine and a hybrid setup, making for power and torque of 202kW and 460Nm respectively. It is all-wheel drive and is paired with a six-speed automatic transmission.

The LM350h comes with a 2.5-litre naturally aspirated petrol engine and a parallel hybrid system, offering up a total system output of 140kW and 239Nm. The 350h comes in front or all-wheel-drive guise and uses a continuously variable transmission (CVT).

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.

As you’d hope with an all-hybrid line-up, the LM excels when it comes to combined cycle fuel efficiency. The 350h FWD sips just 5.5 litres per 100 kilometres, while the AWD version is 5.6L/100km. The 500h is a little thirstier at 6.6L. 

Our drive was so brief we did not get to record an on-test fuel figure.

The theoretical range of the LM, considering the 60-litre fuel tank and 5.5L/100km (350h) and 6.6L/100km (500h) fuel consumption figures is about 1000km.

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.

As mentioned earlier, I spent much more time in the second row as a passenger than I did behind the wheel of the LM350h. But it was enough time to capture some initial high-level drive impressions.

But let’s start in the rear. The ride in the second row is comfortable - as you’d hope. Our trek from Melbourne’s inner north down to the Mornington Peninsula included a lot of freeway, which was smooth. The only thing that disturbed the peace was a chunky bridge join that caused a bit of a thump. But we were hardly disturbed. 

Back in the driver’s seat, there’s a lot to like about how the LM350h drives. First of all, it feels smaller on the road than its ample dimensions would otherwise suggest. It even feels relatively light on the road. 

After the LM, I drove a Mercedes-Benz EQE SUV that has a similar kerb weight (the Lexus is about 2.4 tonnes), and the LM felt lighter.  

The hybrid powertrain is responsive enough, offering decent acceleration from a standing start. The more potent 500h will of course be quicker.

The transition from electric to petrol propulsion is pretty smooth in Lexus (and Toyota) models these days, and the additional noise-deadening materials in the LM ensure it’s subtle.

The 2.5-litre petrol engine is really only noticeable when accelerating hard, and the CVT a slight drone, but it’s in no way unpleasant. 

Otherwise it’s a superbly refined and quiet cabin on all but the absolute worst road surfaces. Whisper quiet power windows adds to that feeling of luxurious refinement.

Given the brief time behind the wheel, we didn’t get to test the handling capability of the LM, so that might have to wait for a review in the New Year. 

The steering is heavily weighted and doesn’t feel overly responsive, but it’s perfectly suited to this sort of vehicle.

That supple ride we experienced in the rear was also evident behind the wheel.

This was especially impressive on a couple of pock-marked peninsular back roads. The ride is also much more compliant than the Mercedes-Benz EQV I tested early in 2023.

The LM is yet to be crash tested by ANCAP, and it is unclear if it will be given the fact that it’s a niche model. However, as with other current Lexus models, it has a long list of standard safety gear.

The safety suite, including intersection assist, and a pre-collision system with vehicle, pedestrian, bicyclist and daytime motorcyclist detection.

It also comes with emergency steering assist, full-speed radar cruise control, ‘Curve Speed Reduction’, ‘Lane Trace Assist’ with lane-departure alert, automatic high beam, ‘Road-Sign Assist’ (speed signs only), ‘Emergency Driver Stop System’, a blind-spot monitor and rear cross-traffic alert.

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.

When you buy a Lexus, you get a bit more than a car. The brand has a customer loyalty program - Lexus Encore - and depending on what model you buy, you are eligible for some pretty cool discounts, bonuses and experiences. 

There are three tiers, depending on your model. UX, NX, RX and ES fall under regular Encore, and electric models the RZ and UX300e sit beneath Electrified Benefits. But the LM, as well as the LS, LC and LX are under Encore Platinum - the top tier. 

That means access to the ‘On Demand’ program that allows access to another Lexus model for a few days or longer. So if you own an LC Convertible but need an RX for a few days to ferry people around, that’s all free. There’s valet parking service loans and more.

It also includes upgrades at Lexus partners. Our launch took us to Jackalope Hotel on the Mornington Peninsula, which is a Lexus partner, and you can get a bunch of extras here as a Lexus owner that other guests won’t get.

In terms of other ownership details, the LM is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

Lexus is yet to announce the capped-price servicing details for LM, but it is expected to cover five years, and should be in the vicinity of approximately $700 per service.