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.
Even amid the near-constant discussion of utes in Australia, 2025 has been a momentous year. We’ve already seen the arrival of the BYD Shark 6, Ford Ranger PHEV and Kia Tasman. Now comes the latest new contender looking to shake-up the establishment - MG.
The formerly-British-turned-Chinese brand has made no secret of the fact its Australian aspirations involve challenging Toyota, Ford and Mazda at the top of the sales charts. To achieve that it knew it needed a ute and needed one quickly.
Luckily for MG, it had a way to shortcut the development and get a new ute into the market in next to no time. It was called the LDV Terron 9, an upsized ute from the commercial vehicles division of SAIC, parent company to MG.
In a throwback to the days of ‘badge engineering’ (if you don’t remember, kids, google ‘Toyota Lexcen’ or ‘Holden Apollo’), the LDV swapped badges and became the MG U9. To be fair, there are some key technical differences that we’ll explain, but the majority of the two vehicles are shared, saving time and money to help MG enter the ute contest as quickly as it could.
The LDV arrived in Australia a few weeks before the MG, but the arrival of the U9 marks a key moment, not only for the ute market, but also the brand itself. MG Australia boss Peter Ciao admitted this is a watershed moment, when MG stops focusing on small vehicles like the MG3, MG4 and ZS and takes on the literal big boys of the car industry.
Before we dive into the details, it must be noted at this point the cars we tested were pre-production examples and while mechanically the same as the vehicles which will ultimately arrive in showrooms, the trim and equipment was not the final version.
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).
I can’t give you a definitive verdict on the U9 based on our limited time behind the wheel. However, what I can say with certainty is MG is serious about making its first ute a success. The price alone demonstrates how motivated the brand is to win buyers over. Undercutting the likes of the Ranger and HiLux with a physically larger ute is a strong opening move from MG.
The clever features, spacious cabin and smart technology will also help to win over buyers, as will the choice of a conventional diesel engine. But none of that guarantees success. As the dominance of the Ford and Toyota demonstrates, ute buyers are loyal and drawn to the most popular options, so MG will need to fight hard for every sale to ensure the U9 isn't lost in the increasingly crowded ute market.
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.
While the fancy tailgate step and the Smart Hatch are the most obvious changes between the LDV and MG utes on the surface, arguably the biggest change is what’s underneath. MG has opted to buck the conventional leaf spring, live rear axle set-up and has instead opted for a more SUV-like independent, multi-link rear suspension.
This explains why such a big ute has a sub-one-tonne payload, but it speaks to MG’s aspirations to try and lure ‘urban’ ute buyers. There is no doubt a large group of ute owners who don’t go off-road regularly and instead use their vehicle as a family transporter.
To that end, opting for a more SUV-like suspension set-up should be beneficial to its on-road manners and unladen ride. Unfortunately, as mentioned earlier, we couldn’t test that because our drive was limited to unsealed roads. But it was enough for us to get an initial impression of how the U9 drives and the early signs are positive.
The engine sounds like a traditional ute, with the gruff diesel ‘chug’ and smooth pulling power. The towing test provided was well below the 3500kg maximum rating, only 1500kg, so naturally the U9 has little trouble pulling the horse float along.
As for the ride on the suspension, it's fairly well composed on a gravel road and offers no obvious signs of struggle on more challenging muddy trails and creek crossings. So there are promising signs that the U9 should be able to hold its own against the more established ute contenders.
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.
That SUV-like interior and the larger dimensions make for a very pleasant cabin with loads of space. We didn’t get too much time to experience the multimedia system, but the 12.3-inch touchscreen looks good and operates smoothly, while the inclusion of large physical buttons for the air-conditioning and audio system is a positive for those who value ease-of-use.
There’s a generous amount of room up front, but it’s the back that really impresses. Unlike the sometimes cramped back seats in a conventionally-sized dual-cab ute, the U9 has plenty of legroom and headroom for four or even five adults to fit in comfort.
There’s also plenty of small item storage, including a wireless charging pad (but only on the high-grades) and USB outlets just ahead of the gear selector.
As for the tray out the back, that is so important to ute buyers, it measures 1600mm by 1600mm at the top, but narrows to 1230mm between the wheel arches. Despite its big size, the payload is only rated at 870kg for the Explore, 835kg for the Explore X and just 770kg for the Explore Pro.
However, MG has introduced a party trick no-one else, not even LDV offers, in the tray. At the press of a button, the rear tailgate opens and then with another press a section of the tailgate drops down, revealing a step. While not the quickest way to climb into a tray, it might be the nicest and is definitely the easiest this reviewer has experienced locally.
The even more elaborate party trick the U9 offers is what MG calls a ‘Smart Hatch’. This allows for the rear glass to retract and the bottom of the cabin to recline into the interior, creating a direct connection between the tray and the cabin for especially long items. While MG is, rightfully, very proud and keen to promote the Smart Hatch, it must be noted it is only available as an option on the Explore Pro and costs $5500 (which is nearly 10 per cent of the total cost of the car) so you’ll want to really need the extra space.
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.
By not having to worry about developing its own ute from scratch, MG was able to focus on its key selling strength - price. MG has a reputation for its aggressive pricing strategy in Australia, trying to win over buyers with the most affordable or best value products in any given market sector.
To that end, the MG U9 range begins at just $52,990, drive-away, for the U9 Explore, undercutting not only the Terron 9 Origin (from $53,674, drive-away), the Ford Ranger and Toyota HiLux dual-cab pick-up ranges. It's inline with the similarly-sized GWM Cannon Alpha (from $51,990 drive-away).
For $52,990 the U9 Explore comes with 18-inch alloy wheels, side steps, painted tub liner, synthetic leather seats, keyless entry and ignition and a six-speaker stereo with digital radio and wireless Apple CarPlay/Android Auto.
Next up in the range is the U9 Explore X, which starts at $55,990, drive-away. For the extra money you get 19-inch alloys, a cargo slide rail with a hook in the tray, heated front seats, acoustic glass, vehicle app connectivity, voice command, a wireless smartphone charging pad, satellite navigation, Amazon music and the ability to receive over-the-air updates.
The flagship Explore Pro is priced from $60,990, drive-away, and has 20-inch alloy wheels, an eight-speaker JBL sound system, a panoramic sunroof, suede headlining, heated outboard rear seats and the clever tailgate step we’ll detail later.
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.
MG has plenty of hybrid knowledge, but has opted to keep it simple for the U9. It’s powered by a 2.5-litre, four-cylinder, turbo-diesel engine, which should be popular with the ute crowd.
It produces a solid, if unspectacular, 160kW and 520Nm, enough for it to offer a 3500kg maximum braked towing capacity, which is also something that should be popular with potential buyers.
The engine is paired with an eight-speed (torque-converter) automatic transmission and 'Super Select' 4WD system capable of sending drive to all four wheels.
Like so many new brands in the ute market, MG was keen to highlight that the transmission is built by ZF and the 4WD system is from BorgWarner, both brands with a long history in their respective areas.
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.
As all three variants are powered by the same engine and all return the same fuel economy. Rated at 7.9L/100km on the combined (urban/extra-urban) cycle.
As our test drive was limited to off-road only we can’t assess its real-world usage, so that will need to wait until we can spend extended time behind the wheel.
Notably, with an 80-litre fuel tank the U9 has a theoretical driving range of more than 1000km, which is great for anyone looking to take their ute on a long road trip.
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.
In terms of safety, the U9 has all the usual features you should expect of any new car in 2025. This includes airbag protection for all occupants, plus active safety features including autonomous emergency braking, adaptive cruise control, lane keeping assist and a host of others.
That’s enough for it to achieve a maximum five-star Euro NCAP score and MG expects the same from ANCAP. However, it must be noted Euro NCAP crash tested the LDV e-Terron 9, the electric version of the ute, which obviously has no diesel engine in the front of the vehicle and instead a smaller electric motor and a storage space.
It also worth noting even on our limited, off-road only drive, the driver attention system seemed very sensitive, which suggests better calibration is needed. So we’ll reserve final judgement on the other systems until we can fully experience them, too.
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.
This is a crucial area for many ute buyers, so MG has tried to make itself as appealing as possible to discerning pick-up prospects.
However, the U9 is covered by MG’s seven year warranty, not the newer 10 year coverage from its passenger vehicles. And even then, that requires you to service the vehicle via an authorised MG dealer for the full seven years to apply.
However, this only applies to non-commercial use vehicles, so while tradies will be covered, fleet buyers are stuck with a five-year warranty.
Over the first five years, if you spend the $2395 capped price costs, you’ll get the extra two years of coverage. The first service is due after 10,000km, but the rest are at 12-months/15,000km.
MG has also worked on expanding its dealer and servicing network to respond to some growing pains and ensure owners aren’t burnt and are more likely to return for their next MG. There are currently 120 MG dealers across Australia with plans to gradually expand that footprint into regional areas following the launch of the U9.