What's the difference?
In a world where car upgrades often feel like saying, “Can I upsize that?”, it’s refreshing to hop into the updated Audi S3 Sportback.
The flagship RS 3 may still be the holy grail of hot hatch dreams, but with boosted engine outputs and upgraded tech, the S3 is stepping up.
Is the S3 Sportback the smarter pick over pricier rivals? It delivers serious performance and polish without stretching into RS 3 territory. With fierce competition in the segment, let’s see what this contender brings to the table.
BYD has achieved much success in recent years in Australia and it's now branching out with a new, more premium brand.
Denza is like the Lexus to Toyota and it’s launching in Australia with two large body-on-frame plug-in hybrid (PHEV) SUVs – the B5 and B8.
The former is on test here and its rivals include mainstream models like the GWM Tank 300 PHEV, however it also pitches itself against more premium offerings like the Land Rover Defender.
We’ve already driven the B5 over in China and this is the first time we’re getting to test it out on Australian roads, so let’s see how it fares.
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).
Denza has made a huge statement with the B5 and for the most part the hype is deserved. It packs an incredible amount of luxury and tech inside and out which is even more surprising given the impressive asking price.
There are only a few flaws like the busy ride, over-the-top body roll and the occasional infotainment quirk. Hopefully these can be fixed with future over-the-air software updates.
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.
It’s worth calling out straight away that the Denza B5 is essentially an SUV version of the BYD Shark 6 as the two share underpinnings, but it’s much more luxurious and blingy.
Externally it has a big, boxy and bluff design that helps it stand out on the road. It looks even tougher when the suspension is in its lifted mode.
I particularly like the front fascia with the big headlights and the prominent Denza badge on the grille, but there are some strange body creases around the side.
While the boxy looks make the B5 stand out, it’s not necessarily unique. There are elements that are reminiscent of the Land Rover Defender, plus many angles look similar to the GWM Tank 300.
Inside is where the luxe is dialled to the max. There are so many soft touches around the cabin that it makes a lovely place to spend time.
Additionally there is a lot of high-quality physical switchgear which is surprising given how prominent the large 15.6-inch central touchscreen is.
Lastly, I like how substantial many of the finishes are. There are large grab handles on either side of the dashboard which you do need to use to hoist yourself into the cabin, plus chunky interior door handle pulls that are satisfying to use.
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.
Many Chinese cars have lots of bling but lack actual substance when it comes to comfort and usability. This is where the Denza differs.
Take the driver’s seat, for example. In a number of Chinese cars they look plush and comfy, but in reality they are firm after longer drives and lack adjustability.
The B5’s driver’s seat, however, is very comfortable, offering almost limitless adjustment, plus heating, ventilation and even a massage function as standard. The latter is great for longer road trips.
Ahead of the driver the steering wheel has plenty of adjustment, allowing people of different heights and statures to get comfortable behind the wheel. There are also lots of physical buttons and switches that have a satisfying click when pressed.
The digital instrument cluster is high-resolution and clear, and there's a number of different informative pages that you can cycle through. It’s nice to have this level of customisation.
Moving across, the aforementioned 15.6-inch touchscreen multimedia system dominates the dashboard. If you’re familiar with the user interface in other BYD vehicles, it’s virtually identical in the B5.
It’s very easy to navigate around and if you do get lost there are a number of shortcut buttons at the bottom of the screen that can either take you back home or to other key functions.
One of my favourite features about the screen is the swipe-down control centre menu. You can customise it to have key shortcut functions. It’s much better than having to dig through countless submenus.
It’s clear Denza still has a few kinks to iron out with the translations from Chinese to English as some don’t make sense. Denza will likely sort this with future software updates.
As standard there is wireless Apple CarPlay and Android Auto and it takes up the full screen when connected. It’s a stunning set-up, though reaching the far left-hand side of the screen from the driver’s seat can be a little tricky on the move.
As I touched on earlier, there is a lot of physical switchgear around the cabin which is helpful as you don’t need to solely rely on the touchscreen for key functions. The piano key buttons for the drive and EV/HEV modes are particularly handy, plus the rising gear shift lever is premium-feeling.
In terms of storage up front, there are up to two 50W wireless chargers (depending on the variant you opt for) with ventilation, two cupholders with adjustable depths, some shallow storage under the centre console, plus a fridge/hotbox under the centre armrest.
Moving to the second row there is plenty of space for at least two adults to sit comfortably. Pushing it to three may be a little tight with shoulder room, plus the centre seat is raised compared to the outboard ones. It’s worth noting though that there is a flat floor so you don’t need to fight for foot space.
Second-row amenities include chunky grab handles for easy ingress and egress, air vents on the back of the centre console, as well as heated and ventilated outboard seats in the top-spec Leopard trim. It’s properly luxe.
At the back the tailgate is side-hinged which can be problematic if you reverse into a carpark as you need to allow for space for it to open up. It has a soft-close function which is handy as you don’t need to slam it shut.
There’s 470L of boot space with the rear seats upright, expanding to around 1000L when folded. It’s a decent amount of space and is square with a very minimal load lip.
Amenities include a 12V socket, a wide array of hooks and nets, as well as a small storage space under the boot floor for the charging cables.
Lastly the B5 comes with a full-size spare wheel mounted on the tailgate. This is becoming increasingly rare in electrified vehicles and is very handy if you have a puncture.
The A3 Sportback comes in three trim levels, with the S3 technically sitting in the middle, just below the performance-focused RS 3. It's priced from $78,800, before on-road costs, and it shares the same platform and underpinnings as the Volkswagen Golf R. Surprisingly, our test vehicle isn’t significantly more expensive than its Golf R rival which comes in at $70,990 MSRP.
That makes it a more affordable option when compared to premium rivals like the BMW M135 xDrive which starts at $83,600 MSRP and the Mercedes-AMG A35 which comes in at $89,700 MSRP.
The update sees engine outputs improve with it gaining 17kW and 20Nm of torque, resulting in a total of 245kW and 420Nm.
Feature highlights include 19-inch alloy wheels, red brake calipers, electrically-adjustable and heated front seats (with expandable under-thigh support), rear privacy glass, quilted Nappa leather upholstery and 'S Sport' suspension with damper control which lowers the ride height lowered by 15mm.
The updated technology is well-rounded and now comes with wireless Apple CarPlay and Android Auto. There's also three-zone climate control, a 10.1-inch touchscreen multimedia display, a 12.3-inch digital instrument cluster, digital radio, four USB-C ports, a wireless charging pad, built-in satellite navigation and a 15-speaker Sonos 3D sound system.
Still, despite its premium hot hatch status, this grade skips a few luxury touches. Ventilated front seats, a heated steering wheel, heated rear outboard seats and a sunroof are all missing. The BMW M135 xDrive, notably, includes all of these as standard.
Even the powered tailgate with kick-functionality is an optional extra here, adding $660 to the price. At this level that should be standard.
The 2026 Denza B5 is offered in two trim levels – entry-level and the top-spec Leopard. Pricing for the former is $74,990 before on-road costs, while the latter is $79,990 before on-road costs.
This is very competitive and it undercuts many top-selling rivals like the diesel-powered Toyota Prado and Ford Everest by a significant margin if you want similar levels of specification.
It’s worth noting however, the GWM Tank 300 PHEV, which is the B5’s closest rival in terms of powertrains, is even cheaper at $59,990 drive-away.
As a base, the B5 is loaded with standard equipment. You get 18-inch alloy wheels, adaptive LED headlights, a glass panoramic sunroof, 12.3-inch digital instrument cluster, 15.6-inch touchscreen multimedia system, 16-speaker Devialet sound system, leather upholstery, heated and ventilated front seats with a massage function, plus heated outboard rear seats.
If this isn’t enough, the B5 Leopard gets larger 20-inch alloy wheels, adaptive hydraulic suspension, a digital rear-view mirror, a second wireless phone charger, Nappa leather upholstery and ventilated outboard rear seats.
This amount of standard equipment is wild, especially because the asking price is firmly below $100K.
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.
Power comes from plug-in hybrid set-up combining dual electric motors (one on each axle) and a 1.5-litre turbocharged four-cylinder petrol engine.
It’s a similar set-up to the BYD Shark 6, but the B5 has more power. Total system outputs are a meaty 400kW and 760Nm, which is good for a claimed 0-100km/h sprint in just 4.8 seconds.
Power is sent to all four wheels and for added peace of mind off-road there are front and rear mechanical diff locks as standard, plus a wide range of drive and terrain modes, including a low-range mode.
Backing this up is a 3000kg braked towing capacity and up to 600kg of payload.
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.
Feeding the electric motors is a 31.8kWh lithium iron phosphate (LFP) Blade battery which Denza claims to allow the B5 to travel up to 100km on electric power alone, according to NEDC testing.
There’s also vehicle-to-load (V2L) capability with 6.6kW output through the charging port using an adapter. This allows you to use the battery charge to power appliances. It’s handy if you go camping, for example.
The battery can be AC charged at rates up to 11kW or DC fast-charged at rates up to 100kW.
There’s also an 83L fuel tank. Denza claims the B5 has a total range of 975km, according to NEDC testing.
Fuel consumption depends on whether or not you charge up the battery. Denza claims you’ll use 1.9L/100km from 100 to 25 per cent battery charge and 9.5L/100km under 25 per cent battery charge, both according to NEDC testing. Regardless, this is better than similarly sized diesel-powered SUVs.
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.
Behind the wheel the Denza B5 primarily operates as an electric vehicle (EV) first up, meaning it’s largely quiet inside the cabin when driving around normally.
Once the charge starts to drop, the petrol engine typically switches on to top up the battery. It largely acts as a generator and a lot of the time you can’t actually tell whether it’s on or off.
In some cases where you floor the throttle or go up a steep hill, the engine revs can flare and that’s when it makes its presence known in the cabin.
When the battery charge gets down low enough and you gun it, the petrol engine can directly power the front wheels. This is rare though because the car purposefully leaves at least 25 per cent battery charge in reserve.
With 400kW and 760Nm thanks to the combination of the dual electric motors and the 1.5-litre turbo-petrol engine, the B5 absolutely hauls. The peppy feel is largely due to the instantaneous torque the electric motors provide.
However, in the standard drive mode there is a noticeable input lag from when you push the accelerator a bit harder and when the car actually accelerates. This is reduced in the sport drive mode.
Despite the juicy outputs, the B5 does feel its weight. When you accelerate hard it pitches back extensively, much like the Jeep Grand Cherokee Trackhawk. This never failed to make me smile though.
It’s surprising as we only drove the top-spec B5 Leopard on this launch and it comes fitted with the DiSus-P adaptive hydraulic suspension system which has a self-levelling function.
In the bends the B5 gets a considerable amount of body roll regardless of the drive mode. This is common for many Chinese cars as they typically prioritise floaty comfort-oriented tunes over a firmer and more dynamic-feeling ride.
Despite this, once it leans over it’ll comfortably hold and grip, largely thanks to the chunky 275/55 R20 Pirelli Scorpion tyres that come standard on the top-spec Leopard trim.
Like many body-on-frame vehicles, the ride gets busy on harsher roads with more frequent bumps. As a passenger you can get jostled about in the cabin.
The steering, while direct enough, can have a vague and artificial feeling. Depending on the drive mode it either artificially adds or reduces the resistance.
Unlike the related BYD Shark 6, the B5 gets a low-range mode which uses a clutch pack on the rear electric motor to allow for more controlled low-speed crawling, plus front and rear mechanical diff locks. This can make a big difference once the going gets really tough.
Additionally, the DiSus-P hydraulic suspension allows for a total of 140mm of travel. In the highest position there’s a wading depth of up to 790mm.
Lastly in terms of noise, vibration and harshness (NVH), the B5 is a very quiet car to drive. As I mentioned above, the electric-first nature automatically makes this a quiet car.
There is very little road and wind noise. This is surprising as the B5 is essentially a 3.0-tonne box on wheels. It seems Denza has put a lot of effort into sound insulation.
The S3 isn’t covered by its 2WD sibling's maximum five-star ANCAP safety rating but it is well-equipped with safety features all the same.
Safety equipment includes blind-spot monitoring, side exit assist, rear cross-traffic alert, lane departure alert, lane keeping aid, park assist, reversing camera, front/rear parking sensors, forward collision warning, autonomous emergency braking and adaptive cruise control with stop and go function.
It also has six airbags but misses out on a front centre airbag. None of the driver assist systems are intrusive to daily driving, which I always like.
The rear row has ISOFIX child seat mounts and three top-tether anchor points but only two child seats will fit.
The Denza B5 received a five-star ANCAP safety rating based on testing conducted in 2025.
As standard there are 11 airbags, autonomous emergency braking (AEB), blind-spot monitoring, front and rear cross-traffic alert, adaptive cruise control, a driver attention monitor, front and rear parking sensors, plus a surround-view camera.
While a number of the active safety systems operate well and only intervene when required, some are intrusive and over the top. The worst offender is the driver attention monitor which struggles to detect your eyes with sunglasses on, plus only requires a brief glance at the touchscreen to get it saying, “Tiredness detected, please take a rest”.
Thankfully you can turn this off using the touchscreen with the handy swipe-down control centre menu, but it needs to be done every time you drive the car.
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.
Denza B5 owners are covered by a six-year, 150,000km warranty, whereas the high-voltage battery is covered for eight years or 160,000km. Owners also receive three years of roadside assistance.
This warranty length is fairly standard in the mainstream segment, but in the luxury segment it pushes past the current five-year benchmark.
Logbook servicing is required every 12 months or 20,000km, whichever comes first. The first five years of servicing totals $3542, which averages out to just over $700 per service. This does seem like a lot, but in the premium space this is rather competitive, especially once you consider both the electric and combustion components are being serviced.
There are currently seven Denza dealers around Australia and it plans to have a total of 20 by the end of 2026. It’s also planning to allow certain BYD dealers to service Denza cars.