Audi S3 vs Jaguar XE

What's the difference?

There are plenty of historical instances where a particular model within a broader range manages to hit the absolute sweet spot even though it’s not the fastest or most expensive variant. Porsche’s GTS specification across various models is a great example of this.

And at the risk of being proven wrong when the all-new RS3 comes along later this year, this car, the S3, might just pull off that feat.

Yes, the new RS3 will be more powerful and will offer even more grip and sporty flavour, but it will also be more expensive. And we defy anybody to drive the S3 and say that it lacks dynamism in any single area.

It’s also a magnificently balanced car with the right amount of attention paid to every aspect of its trim and performance. That, in essence, is where that `balanced’ label originates and even though it’s felt most in the actual driving experience, it permeates throughout the entire vehicle.

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

The Jaguar XE is a dynamic, prestige mid-sized premium sedan, for those who are more concerned with engaging driving than cargo space and rear legroom.

The sweet spot in the range is the entry R-Dynamic SE.  Buy that one and option the handling pack, and you'll still come in under the costs of the HSE.

Bang for you buck is the XE’s strong point and you won’t find more horsepower at this price in rivals such as BMW 3 Series, Benz’s C-Class or the Audi A4.

Perhaps the most striking thing about the styling of the new Audi is just how similar it looks to the old model. Okay, this is not a new thing with Audi which has made a point of not throwing a handsome design into the dumpster in pursuit of new for new’s sake.

As such, the exterior lines are taut and typically Audi clean and, with the latest LED headlights and a refinement of the Audi trapezoidal grille, the look is fresh and crisp without being a novelty act.

Inside, the virtual dash display and large, relatively flat centre console almost amount to anti-styling. Or it would if the rest of the deal wasn’t so sharply angled towards a philosophy of less is more.

Again, this is classic modern-era Audi where the game is to make a complex layout look as simple as possible. The face-level air vents also seem to have borrowed a little Lamborghini (part of the Audi family) DNA.

I particularly like the new shift-by-wire gear selector which is a nifty looking switch but works just as intuitively as a conventional shift lever. New tech meets old muscle memory, I’m calling it.

It's worth mentioning (again) just how good Audi’s customisable dashboard display is. With sharp, clear graphics and the ability for the driver to prioritise the information on display at the time, the S3’s display is still about the best in the business.

Overall, ergonomics have always been a long-suit of this brand and there’s been a clear intention to follow that tradition this time around.

This freshen up of the XE sees a sharper, wider look for the mid-sized sedan with sleeker headlights and tail-lights, plus redesigned front and rear bumpers.

From front-on the XE looks low, broad and planted, a black mesh grille and the way it’s flanked by much larger air intakes is tough, and the signature Jaguar long bonnet curving down towards it looks magnificent.

The rear of the car has benefited greatly, too. Gone are those overly simple tail-lights, replaced by more refined units with a strong resemblance to the F-Type's.

How much smaller is the XE than its big sister the XF? Well, here are the dimensions. The XE is a mid-sized car at 4678mm long (276mm shorter than the XF), 1416mm tall (41mm shorter in height) and 13mm narrower at 2075mm wide (including the mirrors).

The Mercedes-Benz C-Class is almost the same length at 4686mm, while the BMW 3 Series is 31mm longer.

The XE’s cabin has been updated, too. There’s the new steering wheel which has a more minimalist and cleaner design than the previous tiller, the rotary gear shifter has been replaced with an upright trigger-grip device (another functional improvement), and there’s the 12.3-inch digital instrument cluster.

New materials and trims are used throughout the interior. Both grades have premium carpet mats, and aluminium trim around the centre console.

In the SE four types of two-tone leather upholstery can be specified as non-cost options, while another four which are $1170 options in the base grade are available free in the HSE.

The standard cabins of both grades feel luxurious and premium.

While SUV owners are often quick to tell you that they bought their car for its interior space, the truth is sometimes different. And without the huge wheel-wells and suspension towers of a high-riding SUV, the conventional hatch or sedan often has an advantage.

Certainly, there’s no lack of room in the S3 and the hatchback version has a wide hatch opening to make loading easier. The sedan, however, is a full 150mm longer than the hatch and that extra is all behind the rear seat.

So the boot is actually very useable with a capacity of 325 litres. Audi claims the same 325 litres for the Sportback, but that figure jumps to 1145 litres with the rear seat folded flat.

The rear seat in either variant is handily split 40/20/40 and there are storage nets on the back of each front seat, luggage nets in the cargo area and 12-volt outlets in both the centre-rear and luggage compartment. Even floor mats are standard.

Mid-sized sedans have a tough job on their hands when it comes to practicality – they need to be small enough to park and pilot in the city but big enough to carry at least four adults comfortably along with their luggage.

I’m 191cm tall and while space up front for me is plentiful, space behind my diving position is limited. Headroom in the second row is getting tight, too.

The small rear doors also made entry and exit a bit of a challenge for me.

Boot space is also not the best in the class at 410 litres. I’m being kind. See, the Mercedes-Benz C-Class has a cargo capacity of 434 litres, while the BMW 3 Series and Audi A4 have 480 litres volumes.

Up front you’ll find a USB and a 12-volt outlet, but if you want the wireless charger for your iPhone or Android device you’ll need to option it for $180.

There are two members of the Jaguar XE family: the R-Dynamic SE which lists for $65,670, before on-road costs, and the R-Dynamic HSE for $71,940. Both have the same engine, but the HSE has more in the way of standard features.

Coming standard on both cars is a 10.0-inch screen with Apple CarPlay and Android Auto, LED headlights with auto high beam and direction indicators, metal treadplates with R-Dynamic branding, dual-zone climate control, ambient lighting, digital radio, sat nav, proximity key with push button ignition, reversing camera, Bluetooth connectivity and power front seats.

The R-Dynamic HSE grade adds more standard features such as a second touchscreen below the 10.0-inch display for climate control, swaps the 125W six-speaker stereo in the SE for an 11-speaker 380W Meridian system, also adding adaptive cruise control, and an electrically adjustable steering column.

The only other difference is that the SE has 18-inch alloy wheels while the HSE has 19-inch rims.

It’s not incredibly good value as far as standard features go and you’ll have to option privacy glass, wireless charging, the head-up display and a 360-degree camera on both grades.

Here’s where a lot of the extra currency demanded for the S3 goes. Forget the 1.5-litre engine in the base-model A3, and instead move to the two-litre four-cylinder as seen in the A4 40 TFSI. Then, add extra turbo-boost (up to 1.8 bar thanks to an efficient intercooler) different variable valve timing protocols, and a direct fuel-injection system with a specific calibration and the potential to create injector pressures of up to 350 bar, and you have the S3’s powerplant.

Maximum power is 228kW at anywhere from 5450 to 6500rpm, and maximum torque of 400Nm produced in a broad range between 2000 and 5450rpm.

Transmission is a seven-speed dual-clutch unit driving through all four wheels as per Audi’s Quattro mantra, although it’s important to note this version of Quattro is the simpler, arguably less pure, on-demand system where the car behaves as a front-drive platform until the all-wheel-drive system is required to step in.

That said, with 228kW under its wheels, that’s a fair bit of the time. And compared with previous systems, this one takes more notice of driver inputs and wheel-speed to be less reactive and more active.

There’s one engine for both the R-Dynamic SE and R-Dynamic HSE – a 2.0-litre turbo-petrol four cylinder making 221kW/400Nm. Drive is sent to the rear wheels via an eight-speed automatic transmission.

The four-cylinder felt strong and all that torque arrives low in the rev range (1500rpm) for good off-the-line acceleration. The transmission is also excellent, shifting smoothly and decisively.

It’s a shame the V6 isn’t offered anymore, but 221kW is a lot more power than you’ll get for this money in a BMW 3 Series or Mercedes-Benz C-Class

Audi quotes an official combined cycle fuel consumption figure of 7.4L/100km for the A3 Sportback and 7.3 litres for the sedan.

That difference is a bit of a mystery given the sedan is heavier (by just five kilograms) until you consider that the combined figure includes freeway running, at which point the sedan’s extra 150mm of length and different rear diffuser may be the aerodynamic deal-breaker.

The Sportback emits 170 grams of CO2 per kilometre (166 for the sedan) and with the 55-litre tank fitted, both variants should have a range of around 750km between fill-ups.

Jaguar says that the XE will use 6.9L/100km of premium unleaded petrol when driven on a combination of open and urban roads.

After my time with it the trip computer was reporting an average of 8.7L/100km. Not bad considering the test drive would have been thirsty work for the four-cylinder turbo engine.

Some cars take a few minutes at the wheel before they start to get chatty. Not so the S3. From the moment you grab the lovely leather tiller, haul it into gear and give the perky little turbo-motor a squeeze on the throttle, the Audi is making all the right noises and giving clear, precise feedback on its every move.

Sometimes, cars with lots of tyre, lots of all-wheel drive grip and the sort of sharp steering fitted here, can start to feed back so many responses that it becomes difficult to know which one to respond to.

Not the S3, which seems tuned to a keener driver’s priorities (as it should be, of course). As a result, the steering feedback is distinct from what the rest of the front end is doing and everything else going on is clear, quantifiable and designed to improve the experience.

That even extends to the soundtrack which, Audi told us does not use any electronics to improve it beyond amplifying the engine-bay harmonics which use the windscreen and scuttle as their 'speaker.'

Combined with the active exhaust system, this car honestly sounds like a five-cylinder engine (I opened the bonnet to count the spark plugs to make sure it wasn’t. It isn’t.)

If you’ve ever driven a five-cylinder Audi or a V10-powered R8 (two in-line fives, really) the tune will be a familiar one. Lovely, and – again - such amazing attention to detail.

The 2.0-litre engine runs fairly high boost levels, but that doesn’t seem to have affected the way it storms off the mark. Neither does the dual-clutch transmission contribute any delay, provided you haven’t managed to stand on the brake and throttle at the same time (as many left-foot brakers might).

At that point, the driveline goes into sulk mode and will force you to wait a heartbeat or two before full power is restored. This can be an issue when trying to dart across a busy intersection or merge into a traffic flow.

It’s not a new thing to Audis, but remains an annoyance to those of us who equate having two pedals with having two feet.

The driver-selectable drive modes fitted to the S3 are interesting inasmuch as they actually make a meaningful difference to the way the car operates. They alter the transmission shift points, the throttle sensitivity, steering weight and damper settings.

'Comfort' mode will be the default for most owners, and while 'Dynamic' does sharpen up the dampers ever-so-slightly beyond an acceptable day-to-day level of firmness, it also adds weight to the steering feedback.

Frankly, I don’t think it needs it and simply adding resistance feels like a token gesture. And since the steering has a (non-negotiable) variable rate in the first place, bigger inputs equal a bigger proportionate change of direction anyway.

The damping control is now the more sophisticated magnetic-hydraulic type where hydraulic pressure varies the valving rather than the simpler, previous system of energising an electro-magnet to alter the viscosity of the damping fluid.

This more finite control system has allowed more 'bandwidth' as Audi puts it, between Comfort and Dynamic damper settings.

While the auto mode is almost prescient, it’s not actually pre-emptive but rather takes into account suspension deflection, wheel-speed and driver inputs to come up with a combination of settings to make the most of the situation.

And if you really want to fiddle, you can choose 'Individual' and create an overall setting that combines bits of Comfort and Dynamic with a smattering of 'Efficiency' thrown in.

Toggle down to Dynamic and throw the S3 at some bends and it soon emerges as a pretty gripped-up piece of equipment. The front-drive bias is not really noticeable, but then neither is the transition where the computer begins to engage the rear multi-plate clutch to turn the rear axle into an active participant.

There’s certainly no lack of grip at any stage of a typical corner, and even the odd unexpected damp patch poses no awkward questions. Perhaps the biggest grumble would be the tyre roar at highway speeds, but that’s often the price of performance rubber.

The launch took place on twisty country roads snaking away from the coast in Northern NSW, but I was only a few corners in before it became darn clear the R-Dynamic HSE was talented dynamically. Impressively so.

The HSE I tested was fitted with the $2090 'Dynamic Handling Pack', which adds bigger front brakes (350mm), adaptive dampers and configurable settings for throttle, transmission, chassis and steering.

Steering which felt a tad heavy in town became the XE's secret weapon as the roads curled through the hills. The confidence the steering, delivering great feedback and accuracy, gives the driver can’t be overstated.

This combined with the XE’s excellent handling and powerful four-cylinder engine makes it a clear dynamic standout among its competitors.

A comfortable ride even, on potholed roads, but flat handling regardless of how hard it was pushed through corners amazed me.

Sure, optional adaptive dampers were fitted to our test car, but considering the work out they were getting without skipping a beat, their response was impressive.

Following this I dropped into the seat of the red R-Dynamic SE you can see in the images. While this wasn’t fitted with the handling package the HSE had, the only real difference I could feel was in the comfort – the adaptive dampers were able to produce a more composed and cushioned ride.

Handling, however, felt sharp, sure and the steering gave me the same confidence I experienced in the HSE.

The Jaguar XE was given the maximum five-star ANCAP rating when it was tested in 2015. Both the R-Dynamic SE and R-Dynamic HSE come with AEB, lane keeping assistance, rear cross traffic alert, traffic sign recognition and automatic parking.

The HSE adds blind spot assist which will steer you back into your lane if you’re about to change lanes on top of somebody else; and adaptive cruise control.

The lowish score is due to the need to option safety equipment – it’s becoming the norm for advanced technology to be included as standard.

Audi has finally had to cave in and extend its warranty to match its competition. So, any new Audi sold after January 1 this year moves up to a five-year/unlimited kilometre factory warranty; a big step up from the previous three years of cover.

S3 buyers can also opt for Audi’s five-year service plan which costs $2580. Servicing is set down for every 15,000km or 12 months.

The Jaguar XE is covered by a three-year, 100,000km warranty. Servicing is condition-based (your XE will let you know when it needs a check-up) and there’s a five-year/130,000km service plan which costs $1750.

Again a low score here, but that’s because of the short warranty compared to the five-year coverage which has become an industry expectation and while there is a service plan there’s no service-by-service price guide.