Audi S3 vs Lexus IS
What's the difference?

Audi S3

$73,980 - $98,888

2025 price

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Lexus IS

$39,990 - $62,990

2021 price

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Aston Martin Vanquish

Mercedes-Benz A-Class

Mercedes-Benz A35

Mercedes-Benz A45

Mercedes-Benz AMG GT

Mercedes-Benz C-Class

Mercedes-Benz CLA-Class

Mercedes-Benz CLA250

Mercedes-Benz CLS-Class

Mercedes-Benz E-Class

Mercedes-Benz E53

Mercedes-Benz EQS

Mercedes-Benz S-Class

Mercedes-Benz SL-Class

Summary

2025 Audi S3

2021 Lexus IS

By Emily Agar

By Tom White

Safety Rating

Engine Type

Turbo 4, 2.0L

Inline 4, 2.5L

Fuel Type

Premium Unleaded Petrol

Premium Unleaded/Electric

Fuel Efficiency

7.9L/100km (combined)

4.9L/100km (combined)

Seating

Likes

Athletic and sporty in all the right places
Improved engine outputs
Gorgeous cabin space

Sleek and efficient hybrid drive
Graceful ride
Spec improvements

Dislikes

Tiny back seat
Missing some premium features
Lots of road noise

Slow
Busy interior design
Fiddly and over-complicated software

2025 Audi S3 Summary

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.

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2021 Lexus IS Summary

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.

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Deep dive comparison

2025 Audi S3 2021 Lexus IS

Verdict

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).

Verdict

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

Audi S3 vs Lexus IS What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Audi S3 vs Lexus IS
What's the difference?