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.
Thank the automotive gods cars like the GR Yaris still exist.
Not only are hot hatches the funnest way to drive, but in a world that’s obsessed with electric vehicles, these combustion-powered beasties remind us what we’ve got before it's gone.
The GR Yaris arrived in 2020 and won praise for its rally-car-for-the-road feel with Toyota’s high-performance division Gazoo Racing heavily modifying the docile Yaris hatch - while adding a bit of Corolla - to create this little monster.
In early 2025 Toyota added more power and torque, along with an automatic transmission for the GR Yaris and now a new variant has been launched - the GTS Aero Performance Package and this is what we are testing.
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 GR Yaris GTS with the Aero Performance Package is a so wonderfully special with its brilliant engineering, mind-blowing dynamics and fun-to-drive nature. The new aero package makes an already angry beastie look furious, making it the perfect enhancement that's also functional.
The only lower marks here are for warranty, fuel use and practicality. But if there was a score for fun it'd be a 10/10.
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.
The GR Yaris exists so that Toyota could go racing in the World Rally Championship. As with many racing series it required Toyota to build a road-going version of their Yaris race car, also known as a homologation vehicle. It’s a good deal, they get to race, you get a race car for the road. And so the GR Yaris was born.
Wildly different from a regular five-door garden variety Yaris, the GR Yaris is a hand-built three-door hatch with a wider track, wider and lower body and the use of forged carbon and aluminium for lightweight construction.
The GR Yaris already looks very angry, but the GTS Aero Performance Pack makes it look furious. It adds a huge adjustable rear wing, fender ducts that channel air, a front spoiler lip that aids stability, a giant bonnet scoop to help release air, and rear bumper ducts to reduce drag.
The GR Yaris’s cabin was redesigned for the 2025 update and that saw the dashboard angled more to the driver much like in a race car, but it's more functional than fancy and it’s all very plain.
Still, we’re not complaining. The seats are lovely and the red stitching is a nice touch but this isn’t a Lexus. It’s supposed to favour function over form and so the design is absolutely fitting. And by function I mean dynamics and not practicality.
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.
The regular Yaris is small, the GR Yaris is smaller at 3995mm end-to-end and with two fewer doors. As a tall person (I’m 1890mm end-to-end) the space on board is adequate up front with just enough knee, head and elbow room.
The GR Yaris is a four seater with the two rear seats accessed through the front doors. There’s not much room in there for adults and not even my lanky 11-year old would be happy in there. Still if you need to carry three other people, technically you can.
Cabin storage is limited to fairly large door pockets and two cupholders between the front seats. There is a little shelf carved into the dashboard which is great and a small glovebox below it.
Boot space is tiny at 174 litres but again this is a small car with other priorities.
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 GR Yaris GTS Aero Performance Pack sits at the top of the model range with the six-speed manual version listing for $64,990 before on-road costs, while the automatic is $67,490. That’s $4500 more than the standard GTS without the aero pack
The aero pack significantly toughens up the look of the GR Yaris, and also improves its dynamics. So if you plan to use the GR Yaris as a track car and drive it hard and fast, the kit will help.
That's thanks to improved down force from the giant rear wing, air ducts in the fenders to improve steering under braking, a front splitter for stability, underbody cladding to maximise airflow and a bonnet scoop to help release hot air from the engine bay.
The rest of the high-performance equipment comes on the regular GTS including a Torsen limited slip differential, high performance suspension tune and 18-inch forged wheels with Michelin Pilot Sport 4S tyres.
Standard features are the same as the regular GTS and include heated GR sports front seats with suede leather upholstery, a 12.3-inch digital instrument cluster, leather-wrapped steering wheel, aluminium pedals, dual-zone climate control, proximity unlocking and push-button start.
There's also an eight-speaker, eight-inch media screen with Apple CarPlay and Android Auto, and an eight-speaker JBL sound system.
The value is actually great considering all the high-performance engineering around you in the GR Yaris, and it will save you money from being tempted to go down the aftermarket route and buy equipment that hasn't been designed for the car by the people who made the car.
There are some nice comforts, too, like the leather seats, although the media screen is small.
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.
It still boggles my mind how 221kW and 400Nm is extracted from a 1.6-litre three-cylinder petrol engine but here we are. The GR Yaris has this set up with this output, along with all-wheel drive.
Thanks to lightweight materials such as forged carbon and aluminium the GR Yaris weighs nothing in car terms - just 1300kg - so acceleration from 0-100km/h is a rapid 5.1 seconds.
I’ve already detailed the juicy engineering bits the GTS Aero Package is fitted with, from the limited slip diff to the adjustable rear wing, and it’s not an exaggeration to say that not many small hatches are this gifted with this kind of genius.
Our test car has an eight-speed automatic, which is easy to drive in city traffic. However, I'd opt for the six-speed manual because if you've come this far you may as well go the whole way.
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 GR Yaris is a hungry beastie that eats through its 50L petrol tank fairly quickly and then wants more. Toyota says you should see 9.1L/100km of 98 RON used in the automatic and 8.2L/100km with the manual over a combination of driving conditions.
Stop-start city driving in traffic saw fuel use increase dramatically to 13.0L/100km in the auto. According to our car's trip computer, my own testing used an average of 14.5L/100km after mainly suburban driving.
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.
There’s been a multitude of electric cars through the test garage over the past six months and the GR Yaris is like a diamond found in a tub of Lego when it comes to driving.
So much sound. The three cylinder snarls on start up sending vibrations into the cockpit and up through the steering wheel, the transmission can be heard engaging gears, the big brakes creak as they’re released. And we’re hardly even moving yet. There’s so much theatre. It’s all real and I love it!
I even love that in the first 10 minutes of driving, a message appears on the instrument cluster asking that excessive acceleration be avoided while the engine is cool. You don’t get that beautiful inconvenience in an electric car.
But when you can excessively accelerate (on a race track of course, right?) it's wonderful and it's loud. Lift off, and the wastegate lets out a little "weeee!" in excitement.
I don't need to tell you that the GR Yaris handles better than just about anything in this price range and while the ride is firm and speed bumps feel like you’ve hit a gutter I still drove the GR Yaris every day, even to do the school run, because it is so much fun. Meanwhile my hybrid long0term test car looked lonely in the driveaway all week...
Being an automatic makes it easy to drive in traffic and the small size makes finding parking spots quick and simple.
Visibility is good, steering is excellent, the seats are big enough to accommodate me but snug enough to offer good lateral support, too.
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 GR Yaris has not been crash tested by ANCAP and the score for the regular Yaris can't be applied to the GR version.
Still the GR Yaris comes equipped with an array of advanced safety tech such as auto emergency braking (AEB), lane keeping assistance and a blind spot warning.
There are six airbags, two child seat ISOFIX points and two top tether anchor mounts in the rear row.
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 GR Yaris is covered by Toyota's five-year/unlimited-kilometre warranty which is lacking compared to many other mainstream manufacturers’ seven-year-plus warranties. The good news is that the engine and driveline is covered by an extra two-year warranty.
Servicing is capped at about $300 for the first six visits, although services are six months apart which means that after three years you’ll run out of capped-price servicing.
Still, Toyota’s reputation for reliability does provide some peace of mind.