Audi S3 vs Peugeot 408

What's the difference?

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 Peugeot 408 GT plug-in hybrid features tech that could be improved upon and like all plug-ins, you get the best economy if you regularly charge it and that’s not always realistic. It is a little expensive compared to its rivals but sports a killer design that looks fresh and the cabin is roomy with nice features.

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.

There’s quite a lot happening with the design because of the mash-up of body styles. The long sleek body has sedan vibes but it sits high enough to tag itself as an SUV and the rear has that classic coupe pinching.

It won’t be everyone’s cup of tea but I like it. It's bold and different, which feels like a bit of fresh air in this SUV-heavy market.

The lights also set this apart from its Peugeot stablemates and look more refined, too. You can still see the remnants of the original ‘claw’ design in the tail-lights if you look closely but it's the long vertical DRLs at the front that give the design real edge. They resemble the fangs of a snarling cat (just too cool).

The sophisticated sleekness is extended to the interior where you find a cabin that is flush with high-end materials and soft touch points.

The curved dashboard, high-end tech screens and the mix of Nappa leather upholstery and synthetic leather trims definitely cement its grade position. While not a fan of the green contrast stitching myself, it does create an interesting focal point.

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.

Both rows have ample leg- and headroom for my 168cm height. Even my father, who is 183cm tall, felt comfortable in both rows.

The seats are comfortable and offer enough padding to be enjoyable on a long trip. The heat and massage functions on the front seats make the cabin experience feel refined but the massage function sometimes stops when the heat function is also on.

Individual storage is good for the class with the front getting some centre console storage spots, including a phone shelf, as well as a dual-opening middle console, glovebox and two cupholders. There are also a small storage bin and drink bottle holder in each door.

In the rear, there are directional air vents, two USB-C ports, map pockets and a drink bottle holder in each door but you miss out on cup holders, an armrest and other items you might expect for this grade level, like heated outboard seats or climate control.

The other charging options are solid with the front row getting two USB-C ports, a wireless charging pad and a 12-volt socket. There is another 12-volt socket in the boot.

The 10-inch touchscreen multimedia system looks great and you can customise your ‘buttons panel’ to the features you use most often, which is very clever. However, the system isn’t always responsive which gets very annoying - the seat functions in particular can be laggy.

The system does feature built-in satellite navigation and wireless Apple CarPlay and Android Auto but the multimedia system is too glitchy to truly charm.

The boot features a tyre puncture repair kit, relatively level loading space and 471L of boot capacity, which has been fine for all of my errands this week. You also get a hands-free powered tailgate, which is always handy.

The 408 is being offered in one grade for the Australian market, the GT model, and it’s priced from $67,990 before on road costs, making it more expensive than its rivals.

The closest rival, the Cupra Formentor VZe PHEV sits at $64,990 MSRP and the Citroen C5 X PHEV slides in as the most affordable at $57,670 MSRP.

However, only being offered in one grade does have its benefits because the GT is highly specified and most people will be satisfied with the long features list.

In terms of luxuries, there is a heated steering wheel, powered front seats with heat and massage functions, with Nappa leather upholstery and synthetic leather trims throughout.

The technology looks gorgeous with a 10-inch touchscreen multimedia system and a 10-inch digital instrument cluster headlining the dashboard. It's rounded out by the wireless Apple CarPlay and Android Auto, built-in satellite navigation, four USB-C ports, two 12-volt sockets and a wireless charging pad.

The key practical features include a powered tailgate, dual-zone air-conditioning, push-button start, keyless entry and the front driver's seat features a two-position memory function.

You can option a panoramic sunroof for an extra $2000, if you want it.

The 408 only comes in five colours, with the Obsession Blue on our test model being the only included colour. The rest are priced at $690 but the Elixir Red jumps up to $1050.

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.

The 408 GT is a front-wheel drive that has an eight-speed auto transmission and is powered by a 1.6-litre turbo-petrol engine and an 81kW electric motor, which produce combined outputs of 165kW/360Nm. It can do a 0-100km/h sprint in 7.8 seconds. 

The switch between the electric and petrol components isn’t always seamless and you can feel some shudders as it flips between them at lower speeds but the power feels adequate for everyday driving.

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.

The official combined cycle fuel consumption figure is 1.5L/100km but that’s if you were recharging the car every time the electric range dropped out.

My real-world consumption sat at 5.5L after a mix of open-road and urban driving. I only charge it every other day as that’s realistic for my family life but like all plug-ins - you will get the best efficiency if you charge it regularly.

The 408 GT has a Type 2 charging port and a small 12.4kWh lithium-ion battery that can accept up to 3.7kW of power. You get up to 60km of pure electric driving range (but I only saw a top of 38km available) and on a domestic socket, you can go from zero to 100 per cent in around six hours.

On a 7kW or 11kW AC power charger, that drops to three and a half hours. So, it’s a tad slow to charge but worth it if you can leave your car on charge overnight.

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 408 GT has more than enough power to be a comfortable open-roader. You can keep your speed consistent on hills and it has enough gumption to cross traffic quickly in an urban environment.

Steering is responsive and the car is easy to manoeuvre in close quarters but the lane-keeping aid does severe corrections, so have your wits about you when you’re on the go because it can be a fright when the wheel starts fighting you.

With the ride comfort, there can be vibrations through the seats and steering wheel depending on the road surface and you’ll know about it when you hit a bump. It’s okay enough to not be classed as rough but it’s not as refined as you'd hope.

Despite the narrow rear window, the visibility is actually very good and it’s easy enough to park but the 180-degree camera system needs work.

You'll end up using the straight reversing camera because you need to ‘drive’ over the space for an image to pop up for the '180-degree' view and by the time it does, you’ve parked anyway!

The 408 is so new that it doesn’t have an ANCAP safety rating but it has a long list of safety features that it might not worry you.

That list includes all of the biggies like rear cross-traffic alert, blind-spot monitoring, forward collision warning and AEB.

It also includes a driver attention alert, dusk-sensing auto lights, tyre pressure monitoring, lane departure and keeping aids, traffic sign recognition, intelligent seatbelt warning and adaptive cruise control.

Parking is sorted with the 180-degree view camera system and front and rear parking sensors.

The 408 only features six airbags, which is low, and is missing out on the newer front centre airbag and even a drivers knee airbag.

For any families out there, the rear features ISOFIX child-seat mounts on the outboard seats and three top-tether anchor points. Two seats will fit best, though.

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 408 comes with a usual warranty term of five-years/unlimited km and the battery is covered by an eight-year or up to 160,000km warranty.

You can pre-purchase three, four, or five-years worth of services, which all work out to be cheaper than the pay-as-you-go option. It costs $1200 (three-years), $1700 (four-years), and $2000 for the five-year plan.

On the five-year plan, services average $400, which is reasonable for the class. Servicing intervals are also good at every 12 months/15,000km, whichever occurs first.