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.
Mercedes-Benz has shifted its CLA compact coupe-style sedan from support player to headline act with the introduction of this all-new, third-generation version.
It exemplifies the German giant’s multi-powertrain approach with an expansion of the local line-up from two pure-combustion variants to a five-model range comprising three hybrid and two pure-electric options.
CarsGuide was invited to sample the hybrid version of the newcomer (the EVs arrive in July), so stay with us to see if this sleek four-door is your kind of premium European compact sedan.
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 broadening of the CLA’s scope in this third-gen version puts it a step ahead of key rivals and raises the compact sedan’s prominence in the three-pointed star’s local line-up. Its combination of quality design, performance and efficiency is compelling. And we’ll drive the battery-electric version as soon as it lands.
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.
In an impressive feat of aero fine-tuning Mercedes-Benz design and engineering teams have managed to make an already slippery car even more efficient with this new CLA dropping the car’s drag-coefficient from 0.23 to an amazing 0.21.
The sloping, coupe-style profile remains as a CLA signature, complete with frameless doors, flush door handles and aero wheels.
Hybrid variants sport a conventional radiator grille decorated with a Mercedes-Benz star pattern in chrome and illuminated around its perimeter, while the EVs feature a fully illuminated LED grille display.
And in a move perilously close to branding overkill, the three-pointed star motif is carried into the headlights and tail-lights.
For Latin buffs the interior treatment is minimus extremus, the multi-screen ‘MBUX’ array in the CLA220 we drove dominating the front part of the stripped-back cabin.
From an ergonomic point-of-view, there are no physical controls for ventilation and the only non-digital audio control is on the steering wheel.
But aesthetically, the cabin is clean and simple with touches like ‘floating’ door armrests and a gently rounded front centre console adding to an overall relaxed atmosphere.
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.
At just over 4.7 metres long the CLA isn’t a million miles away from full C-Class length and interior space is generous. In fact, there’s an extra 16mm in height and 12mm in width compared to the model this car replaces.
And in terms of storage there are generous bins in the doors with room for bottles and you can place them in one of the two cupholders in the centre console.
There’s the obligatory bin between the seats, a bay here for wireless device charging and a glove box, plus an extra storage bay under the flying buttress-style console.
In the back seat sitting behind the driver’s seat, set for my 183cm position and there’s plenty of footroom as well as acres of legroom and headroom.
And part of that is the immense panoramic roof which is covered in all kinds of high-tech coatings to make sure all the light comes through but none of the heat.
Then for storage, again you’ve got bins in the doors with room for bottles as well as a pull-down armrest between the seats with three cupholders in it (one espresso-sized) and drive slot in front of them.
There are netted map pockets on the front seatbacks, individual vents which are always welcome and a couple of USB-C charging ports to keep devices charged.
Boot volume is rated at 405 litres (VDA) and the rear seatback folds 40/20/40 to liberate more storage space if required. And there’s a 101L front boot on electric models.
There’s a hands-free tailgate on the 220 Hybrid. A 1.6- to 1.8-tonne braked trailer towing capacity is handy, but the fact there’s no physical spare tyre isn’t. Your only option in the case of a flat is an inflator and puncture sealant kit. Not good enough.
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 Mercedes CLA kicks off at $66,500 for the entry-level 180, with two other hybrids above it - the CLA200 at $68,100 and CLA220 4Matic sitting at $84,300, all before on-road costs.
Prefer pure-electric? The CLA200 electric will set you back $72,200 with the flagship CLA350 4Matic electric at $91,300.
Which puts the range in the same price ballpark as its German ‘Big Three’ rivals, the Audi A3/S3 sedan and BMW 2 Series Gran Coupe.
Aside from the safety and performance tech we’ll get to shortly, standard equipment in the CLA180 includes heated power front seats, synthetic leather trim, a fixed panoramic glass roof, ambient lighting, ‘high performance’ LED headlights, keyless entry and start, park assist, 18-inch alloys and metallic paint. And the AI-powered assistant integrates ChatGPT, Google Gemini and Bing technologies.
Move up to the CLA200 and you pick up AMG Line elements including different (still 18-inch) rims, sports seats, synthetic leather and synthetic suede trim, a multi-function sports steering wheel, carbon-grain aluminium trim pieces, AMG body styling and what Merc refers to as ‘a sporty engine sound’ driven through the audio system.
Then, aside from its all-wheel-drive powertrain, the CLA220 4Matic includes the ‘MBUX Superscreen’ (combining a 10.25-inch driver display and 14-inch central media touchscreen), a rear light strip, 16-speaker, 850W Burmester 3D surround audio, ‘Multibeam’ LED headlights, 19-inch AMG rims, a head-up display, hands-free boot functionality and privacy glass.
No surprise, the CLA200 electric’s spec is largely the same as its hybrid counterpart, while the CLA350 4Matic electric matches its extra dual-motor performance with the larger 19-inch wheels.
All in all, a decent rather than class-leading list of included features for the class.
There are two option packages. The ‘Premium’ bundle is essentially the standard spec of the CLA220 4Matic, so it’s $0 on that grade but adds $1800 to the hybrid or electric CLA200 and $2340 (including LCT) to the CLA350 4Matic electric.
Similarly, the ‘Sport’ package consisting of privacy glass and 19-inch rims is standard on the CLA220 4Matic but adds $1200 to the price tag on the CLA200 (hybrid or electric).
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.
Hybrid CLAs combine a 1.5-litre, turbo-petrol, four-cylinder internal-combustion engine (ICE) with a 48-volt electric motor integrated into a new eight-speed dual-clutch transmission with drive going to the front wheels in the CLA180 and 200 and all four in the CLA 220 4Matic.
Mercedes-Benz quotes power and torque outputs for the hybrid’s petrol engine and electric motor individually and the powertrain is able to engage both simultaneously so there are overall output figures, as well.
The pure-electric models are powered by an in-house developed permanently excited synchronous motor driving the rear wheels through a two-speed transmission, with a second 80kW drive unit added to the CLA350’s front axle for extra performance and all-wheel-drive traction.
Here’s a panel to explain it all.
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.
Hybrid CLAs are fitted with a 48-volt, 1.3kWh lithium-ion battery and at urban speeds where less than 20kW is needed, can drive using electric power alone, depending on conditions at speeds up to 100km/h.
Official combined cycle fuel consumption is quoted at 5.4L/100km for the CLA180 and 200, which equates to a theoretical range of close to 800km, rising to 5.8L/100km for the 220 4Matic for a potential range of around 740km.
On the roughly 150km launch drive through Melbourne's suburbs and up the Yarra Valley north-east of the city we saw an average of exactly 5.8L/100km in the CLA220.
Electric CLAs are underpinned by a specific new-gen EV platform boasting an 800-volt electric architecture and housing an 58kWh LFP battery in the 200 electric and an 85kWh NMC pack in the 350.
Maximum charge capacity is 320kW for a claimed 10-80 per cent charge time of 22 minutes.
Claimed energy use for the CLA200 electric is 14.4kWh/100km with a range of 470km while the AWD 350 4Matic sits at 14.9kWh/100km with a range of 663km.
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.
The CLA220 4Matic was the only option available for the drive program, but for the record, claimed 0-100km/h acceleration times for the hybrid models step down in roughly one second increments - 8.8 seconds for the CLA180, 8.0sec for the 200 and 7.1sec for the 220 4Matic.
Switch to pure-electric power and the CLA200 electric hits the same speed in 7.5 seconds, while the 350 4Matic electric smashes the five second barrier at a properly quick 4.9sec.
Mind you, the 350 4Matic electric weighs about 2.1 tonnes while the hybrids tip the scales at roughly 1.7 tonnes.
There’s plenty of performance in the 220 4Matic but power delivery is not always linear with the powertrain taking half a beat to pick up after you’ve applied some throttle. Which could be the interface between the combustion engine and the electric motor or the turbo on the engine.
The sports steering wheel is grippy and chunky in the hands, and while the steering itself is nice and accurate, road feel is modest.
There are two settings for steering weight - Comfort and Sport. We tried both, and yes, you can feel where the car’s going but it’s not exactly an intimate connection between your hands and the front tyres on the tarmac.
Speaking of which, standard rubber on the CLA220 is 225/40 Bridgestone Turanza 6 on 19-inch rims and despite those relatively large wheels the car copes well with bumps and thumps and the coarse-chip surface of rural B-roads.
Suspension consists of a newly-developed strut-based three-link set-up at the front and multi-links at the rear with all of the major components in alloy to minimise unsprung weight.
The car remains composed and balanced through corners and the sports seats in the 220 are grippy, supportive and comfortable. We spent a couple of hours straight behind the wheel without a hint of discomfort.
The CLA’s super-slippery shape manifests itself out on the highway with minimal wind noise at 100km/h and even more. The big tyres are also quiet so the cabin environment remains refined and peaceful.
Brakes on the 220 are vented discs on the front, solid rotors on the rear. And during some pretty challenging downhill twisty sections we leant on them quite heavily. Push hard and they will bite but are not overly aggressive.
The lane-keeping, driver-monitoring and other assistance features are all there, present and accounted for. But more than ticking the box, they work very well.
The media system is driven by a high-capacity unity engine which is often used in gaming and the graphics and animations are super-smooth. And the latest iteration of the Mercedes-Benz media system works nicely across the enormous screens.
All models feature a 360-degree overhead view and a reversing camera and the 11.2-metre turning circle is not small but not vast. The car is easy to manoeuvre and park.
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 new CLA hasn’t been assessed by ANCAP although its sister organisation, Euro NCAP, awarded it a maximum five-star rating in 2025 with mega high scores across the board for occupant and pedestrian protection as well as driver assist systems.
Active (crash-avoidance) tech highlights include auto emergency braking (AEB), blind spot monitoring, lane keeping assist, adaptive cruise control, parking assist, ‘Exit Warning’, ‘Evasive Steering’, ‘Maneuvering Assist’ and more.
Worth noting over-the-air updates cover safety systems, including driver assistance functions.
The airbag count runs to eight, including a front centre bag and there are three top tethers for child restraints across the second row with ISOFIX anchors in the two outer positions.
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.
The CLA is covered by Mercedes-Benz Australia’s five-year/unlimited km warranty with roadside assistance included. On top of that, there’s an eight-year/160,000km warranty on the drive battery in electric models.
That general warranty is in line with Audi, BMW and other premium players, but it’s worth noting an increasing number of brands in the mainstream market are stepping up to longer seven, eight and even 10-year cover.
Hybrid and electric variants have the same 12-month, 25,000km recommended service interval with a five-year schedule for the hybrids equating to an average of $1342 per workshop visit over that period. Reduced mechanical complexity in the EV models lowers that number to $859. But neither is especially cheap in the context of class competitors.