Audi S3 vs Lexus IS350

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 new-look Lexus IS takes several steps forward over its predecessor - it’s safer, smarter, sharper to look at and still pretty well priced and equipped.

It is feeling its age inside, and the competition has moved on in terms of engines and EV tech. But even so, if I was buying a 2021 Lexus IS, it would have to be the IS350 F Sport, which is just the most fitting version of this car, though the IS300h Luxury does have plenty to like for the money, too.

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.

You either get the Lexus look or you don’t, and I think this latest version is possibly more agreeable than the IS in years gone by.

That’s partly because the brand has finally done away with the odd spider-eyes twin-section headlights and daytime running lights - now there are more traditional headlight clusters, which look a lot more resolved than before.

The front end still features a bold ‘spindle’ grille, which gets different treatment depending on the grade, and the front, to my eye, looks better than before but still very much stuck in its ways. 

At the side you’ll notice the giveaway windowline hasn’t changed, despite the chrome trim line having broadened as part of this facelift, but you can tell the haunches have muscled up a bit, with the new IS now 30mm wider overall, and the wheel sizes are 18s or 19s, depending on the grade.

The rear accentuates that width, with an L-shaped lighting signature now spanning the entire re-sculpted boot lid, giving the IS a pretty tidy rear end design.

Overall dimensions for the IS are 4710mm long, making it 30mm longer nose to tail (on an unchanged 2800mm wheelbase), while it now spreads across 1840mm (+30mm) and is 1435mm tall (+5mm).

The exterior changes really are impressive - I think it is a more purposeful but also more pleasant looking car now than it ever has been in this current generation. 

The interior? Well, there’s not a whole lot to talk about in terms of design changes, aside from the repositioned and larger media screen - which sits 150mm closer to the driver because it’s now a touchscreen with the latest smartphone mirroring tech. Otherwise it’s a carryover affair, as you can see from the interior pictures.

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.

The interior design of the IS, as mentioned, hasn’t changed dramatically, and it is starting to feel old compared to some of its contemporaries.

It’s still a nice place to be, with comfortable front seats with electric adjustment and heating across all grades, and cooling on many variants, too. 

The new 10.3-inch touchscreen media system is a nice unit, and means you can essentially do away with the silly trackpad system that still resides near the gear selector, so you may still end up bumping it accidentally. And the fact the IS now has Apple CarPlay and Android Auto (though neither are wirelessly connectable) does further its appeal on the multimedia front, as does the standard 10-speaker Pioneer stereo - though the 17-speaker Mark Levinson unit is an absolute blinder!

The centre stack below the media screen retains a CD player, and still has the electromagnetic temperature adjustment sliders as well. That part of the design is dating it just as much as the transmission tunnel console area, which looks a bit out of touch by modern standards, though still incorporates a pair of cup holders and a reasonably large centre console bin with soft armrest padding.

The front doors feature trenches with bottle holders as well, while in the rear doors there is still no drink storage - a carryover annoyance from the pre-facelift model. However, the middle seat in the back doubles as an armrest with pop-out cupholders, and there are rear air vents too.

Speaking of that middle seat, you wouldn’t want to sit in it for long, as it has a raised base and uncomfortable backrest, plus there’s a huge transmission tunnel intrusion eating into leg and foot space.

Outboard passengers also miss out on toe room, which - for my size 12s - is an issue. And it’s hardly the roomiest second row in this class for knee room and headroom, as my 182cm frame was a touch squished behind my own driving position.

Children will be better catered for in the back, and there are two ISOFIX anchorages and three top-tether attachment points for baby seats.

The boot capacity varies on the model you buy. Choose an IS300 or IS350 and you score 480 litres (VDA) of cargo capacity, while the IS300h has a battery pack that robs it of some boot space, with 450L available. 

The updated 2021 Lexus IS range has seen a number of pricing changes, and a reduction of variants, too. There are now five IS models available, down from seven prior to this update as the Sports Luxury model has been axed, and you can only get the IS350 in F Sport trim now. However, the company has expanded its “Enhancement Pack” strategy across the different variants.

Opening the range is the IS300 Luxury, which lists at $61,500 (all prices listed are the MSRP - not including on-road costs, and are correct at time of publishing). It has the exact same equipment as the IS300h Luxury model, which is $64,500, and that ‘h’ stands for hybrid, which will be detailed in the engines section. 

The Luxury trim is equipped with items such LED headlights and daytime running lights, 18-inch alloy wheels, proximity keyless entry with push-button start, a 10.3-inch touchscreen multimedia system with satellite navigation (including live traffic updates) and Apple CarPlay and Android Auto smartphone mirroring tech, plus a 10-speaker sound system, eight-way power-adjustable front seats with heating and memory settings for the driver, and dual-zone climate control. There’s also auto headlights with auto high beam, rain sensing wipers, power steering column adjustment, and adaptive cruise control.

Indeed, there’s a raft of safety technology included - more on that below - and there’s also a number of Enhancement Pack options.

Luxury spec models can be equipped with a choice of two Enhancement Packs: the $2000 Enhancement Pack adds a sunroof (or moonroof in Lexus speak); or Enhancement Pack 2 (or EP2 - $5500) further adds 19-inch alloy wheels, a 17-speaker Mark Levinson sound system, cooled front seats, high-grade leather-accented interior trim, and a power-operated rear sunshade.

The IS F Sport trim line is available across the IS300 ($70,000), IS300h ($73,000) or the V6-powered IS350 ($75,000), and it adds a number of additional features over the Luxury grade.

As you can probably tell, F Sport models get a sportier look, with a body kit, 19-inch alloy wheels, standard fit adaptive suspension, sports front seats with cooling, sports pedals, and five drive modes to choose from (Eco, Normal, Sport S, Sport S+ and Custom). The F Sport grade also includes a digital instrument cluster with an 8.0-inch display, as well as leather-accented trim, and scuff plates.

Buying the F Sport grade allows customers to add further goodies by way of the Enhancement Pack for that grade, which costs $3100 and includes the sunroof, 17-speaker sound system and rear sunshade.

What’s missing? Well there’s no wireless phone charging in any grade, and no USB-C connectivity either. Note: the spare wheel is a space saver in the IS300 and IS350, but there is only a repair kit in the IS300h as there are batteries where the spare wheel would go.

There’s no go-fast IS F model sitting at the top of the tree here, nor is there a plug-in hybrid to compete against the circa-$85K BMW 330e and Mercedes C300e. But the fact the IS models all come in below $75K means it’s a pretty decent value proposition.

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.

The engine specs depend on the powertrain you choose. And at a glance there’s no variance between the earlier version of the IS and the 2021 facelift.

That means the IS300 model still runs a 2.0-litre turbocharged petrol motor producing 180kW of power (at 5800rpm) and 350Nm of torque (at 1650-4400rpm). It has an eight-speed automatic transmission, and like all IS models, it is rear-wheel drive (RWD/2WD) - there is no all-wheel drive (AWD/4WD) model here.

Next up the spectrum is the IS300h model, which has a 2.5-litre four-cylinder Atkinson cycle petrol motor teamed to an electric motor and nickel metal hydride battery pack. The petrol engine is good for a 133kW (at 6000rpm) and 221Nm (at 4200-5400rpm), and the electric motor produces 105kW/300Nm - but the combined total maximum power output is 164kW, and Lexus doesn’t provide a maximum torque figure. The 300h model runs a CVT automatic transmission.

The big horsepower offering here is the IS350, which runs a 3.5-litre petrol V6 engine, producing 232kW of power (at 6600rpm) and 380Nm of torque (at 4800-4900rpm). It runs an eight-speed auto.

All models have paddle-shifters, while the two non-hybrid models have seen tweaks to the transmission software that is said to “estimate driver intentions” for better enjoyment. 

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.

There’s still no diesel model, no plug-in hybrid and no full electric (EV) model - which means that while Lexus was at the forefront of electrification with its so-called “self-charging” hybrids, it is falling behind the times. You can get plug-in versions of the BMW 3 Series and Mercedes C-Class, and the Tesla Model 3 plays in this space in full-electric guise.

As for the fuel-sipping hero of this trio of powertrains, the IS300h is said to use 5.1 litres per 100 kilometres on the combined cycle fuel test. In reality, our test car’s dashboard showed 6.1L/100km across a mix of driving.

The IS300 with its turbocharged 2.0L engine is next best for fuel use, claiming 8.2L/100km. On our short launch drive of that model, we saw 9.6L/100km on the dashboard.

And the full-fat IS350 V6 petrol claims consumption of 9.5L/100km, while on test we saw 13.4L/100km.

The emissions for the three models are 191g/km (IS300), 217g/km (IS350) and 116g/km (IS300h). All three are Euro 6B compliant. 

Fuel tank capacity is 66 litres for all models, meaning your mileage range for the hybrid model could be considerably longer.

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.

With the engine at the front and drive to the back, it has the ingredients for a pure driver’s car, and Lexus made a bit of a big deal about the new-look IS being more focused thanks to chassis adjustments and track width improvements - and it does feel a pretty nimble and tied-down car in the twisty stuff. 

It is competent at stitching together a series of corners, and the F Sport models are particularly adept. The adaptive suspension in those models includes both anti-dive and anti-squat tech, which is designed to make the car feel solid and flat on the road - and it does, thankfully without feeling twitchy or uncomfortable, with good suspension compliance even in the most aggressive Sport S+ drive mode.

The 19-inch wheels on F Sport models are fitted with Dunlop SP Sport Maxx rubber (235/40 front, 265/35 rear) and there’s plenty of tarmac tenacity.

The grip from Luxury-spec models on 18s could be better, with those Bridgestone Turanza tyres (235/45 all around) proving not quite the most enthralling. 

Indeed, the IS300h Luxury I drove felt very different in character to the F Sport IS300 and 350 models. It was surprising how much more of a plush-focused model the Luxury grade feels, and likewise it wasn’t as impressive in dynamic driving due to the tyre grip and less-enthusiastic drive mode system. The non-adaptive suspension is a touch more jittery too, and while it’s not to the point of discomfort, you might expect better for a car on 18s.  

Across all models the steering is accurate and direct enough, with predictable response and decent feel to the driver’s hands for this electric power steering setup. The F Sport models have even further retuned steering for “an even sportier drive experience”, though I found at times it could feel a little numb for rapid changes of direction. 

As for engines, the IS350 is still the pick. It has the best zest, and feels the most fitting powertrain for this model. It sounds good, too. The auto transmission is pretty clever, there's easily enough pulling power, and it's probably going to be the last of the non-turbo V6s in Lexus's line-up when this cars life-cycle is up.

The IS300's turbo engine was the most disappointing, lacking some urge and constantly feeling bogged down by turbo lag, transmission confusion, or both. It felt underdone in enthusiastic driving, though in dull day-to-day commuting circumstances it came across as more acceptable, though the remapped transmission software was far less impressive in this application than in the IS350.

The IS300h was a lovely, quiet and refined experience all around. It’s the one you should go for if you don’t really care about all that go-fast stuff. The powertrain is proven, it accelerates with nice linear delivery, and at times it’s so hushed I found myself looking down at the instrument cluster to see if the car was in EV mode or if it was using the petrol engine. 

Safety equipment and technology has been upgraded for the IS 2021 model range, though it is expected to carry over its existing five-star ANCAP crash test rating from 2016.

The facelifted version scores auto emergency braking (AEB) with day and night pedestrian detection and daytime cyclist detection (from 10km/h to 80km/h) and car detection (10km/h to 180km/h). There’s also all speed adaptive cruise control with low speed following.

The IS also has lane keeping assistance with lane departure warning, lane trace assist, a new system called Intersection Turning Assist which will brake the car if the system judges the traffic gap isn’t big enough, and there’s also road sign recognition.

Plus the IS has blind-spot monitoring on all grades, as well as rear cross-traffic alert with auto braking (below 15km/h).

And beyond that, Lexus has added new Connected Services features, including an SOS call button, automated collision notification if an airbag deploys, and stolen vehicle tracking. 

Where is the Lexus IS built? Japan is the answer.

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.

On paper, Lexus’s ownership offer isn’t quite as enticing as some other luxury car brands - but it has a strong reputation for blissful ownership.

The Lexus Australia warranty period is four years/100,000km, which is better for duration than Audi and BMW (both three years/unlimited km) but not as accommodating as Mercedes-Benz or Genesis, each of which offer five-year/unlimited km warranty.

The company has a three-year capped price servicing plan, with maintenance every 12 months or 15,000km. The first three visits cost $495 each. That’s okay - but Lexus doesn’t offer free servicing like Genesis, and nor does it offer prepaid service plans - for three to five years for a C-Class, and five years for Audi A4/A5, for instance.

There is complimentary roadside assistance for the first three years, too.

That said, the company has its Encore ownership benefits program that allows a number of experiences and deals, and the service team will collect your car and return it, leaving you with a loan car if you need it.