Audi S3 vs BMW M235i

What's the difference?

The updated Audi S3 Sportback is a fun-sized dynamo with impressive outputs and athletic road manners. It’s missing a few premium features, but its compact size paired with a gutsy engine makes it a compelling option for drivers who don’t want to compromise on performance (just space).

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.

The S3 Sportback may be a small car, but its S design features, like the stylised blackout grille, matrix LED headlights, and 19-inch alloys with red brake calipers, give it a distinctly athletic and fun-loving vibe. It’s compact, but definitely not diminutive and carries serious road presence. It’s hot hatch meets fun-size.

Inside, the S3 looks fabulous. Integrated ambient lighting, a sharp dashboard treatment and a driver-focused cockpit all lend it a premium feel.

The front seats look properly sporty with their integrated headrests, and the quilted Nappa leather upholstery feels great, especially with the eye-catching red contrast stitching.

As for technology, it’s as high-end as you’d expect with a 10.1-inch touchscreen multimedia display and 12.3-inch digital instrument cluster taking centre stage.

The only drawback? No sunroof. Combined with the black headliner and compact cabin, it can feel a little gloomy at times. Still, it’s a cabin you’ll enjoy spending time in.

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.

Like most hatches, the front row enjoys the most space. While it’s cosy, it never feels cramped. The seats are firm yet comfortable, thanks to their adjustability and expandable under-thigh supports. Access is fairly easy with wide door apertures, though the low seating position might earn a few grunts, especially from taller folks.

Storage up front is well sorted, with a glove box, a small centre console, a dedicated phone cradle and a couple of cup and bottle holders. It’s about what you'd expect for a car this size, but it's enough to keep things tidy.

There are plenty of charging options, with two USB-C ports in each row and a wireless charging pad up front.

The multimedia system is intuitive and easy to use. The touchscreen is responsive, and wireless Apple CarPlay connected without fuss and stayed connected all week. Wireless Android Auto is available, too.

Built-in sat nav is clear, and I love the way directions pull through to the digital instrument panel. The Sonos sound system? Pretty darn good. My son and I had more than one mini-concert on the school run.

As for the rear row, it definitely reminds you this is a small car. At 168cm, I found it on the cramped side of cosy and my husband just laughed when I asked him to try it! The wheel arch also cuts into the door aperture, making access a little awkward. Best to think of it as occasional adult seating. But given the size, that’s no surprise.

Amenities in the back are decent with a couple of map pockets, cup and bottle holders, as well as a fold-down armrest, those USB ports and rear temperature control (but curiously, no fan control). The seats are comfortable enough, but space is limited. Realistically, it’s best suited for two passengers, not three.

Boot space is quite practical. The wide opening and manageable load lip height make it easy to slide items in and out. It offers 325L of space, less than its key rivals, but expands to 1145L with the rear seats folded flat. The handy 40/20/40 split also adds versatility. Under the boot floor, you’ll find a tyre repair kit.

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 S3 Sportback wears the quattro badge proudly, meaning it’s all-wheel drive and it pairs a tweaked seven-speed automatic transmission with a 2.0-litre turbocharged, four-cylinder petrol engine.

This update brings a bump in performance over the previous model, including the addition of a rear torque splitter. Power is now up to a gutsy 245kW and 420Nm of torque, launching the S3 from 0 - 100km/h in just 4.7 seconds. That’s proper hot hatch territory.

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 S3 Sportback has an official combined fuel consumption figure of 7.9L/100km and a 55-litre fuel tank, giving it a theoretical driving range of up to 696km.

Its key rivals hover around similar numbers, so it's right on the mark for the segment. After a mix of long-distance drives and my usual urban errands, my real-world figure came in at 8.0L/100km - very close to the claim, which I’m pretty happy with.

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.

The S3 Sportback sounds as mean as it looks, and it delivers on that promise with effortless grunt. Acceleration is immediate, with plenty of power on tap when you need it. It’s just fun all around.

The lowered sports suspension and wide tyres do bring some extra noise into the cabin, even at lower speeds. You might find yourself repeating things to rear passengers now and then, but it never feels overwhelming.

Steering and suspension are on the firmer side, so yes, you’ll feel the bumps but the payoff is sharp, responsive handling. Quick lane changes and winding coastal roads are where this car shines.

Visibility is about what you’d expect from a low-slung hot hatch. The pillars don’t obstruct the view, but sitting beside a towering SUV at the lights can make you feel a bit... compact.

Cornering is a strong suit, thanks to the car’s wide stance and AWD system. It feels confidently planted in most conditions. That said, I noticed the occasional wobble through the rear frame on rough sections in heavy rain.

Its compact size makes parking a breeze, especially with the help of multiple sensors. The reversing camera is crisp, but at this price point, the lack of a 360-degree camera view feels like a missed opportunity.

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.

Audi backs the S3 Sportback with a five-year/unlimited kilometre warranty, which is on par with its European rivals. A five-year pre-paid servicing plan is available for $2890 which is cheaper than pay-as-you-go and reasonable for the class.

For those looking to go the extra mile, the 'Audi Advantage' package lets you extend the warranty and capped-price servicing by an additional two years, which represents solid value overall.

Servicing intervals are every 12 months or 15,000km, whichever comes first.

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.