Watch out, China! Sharper-value Audi A3 comes in hot to fight up-start BYD Atto 3 and MG4, along with VW Golf, Honda Civic and other premium hatchbacks

Audi will finally launch the facelifted A3 Sportback range in Australia in the second quarter of this year, to take the fight to the rising tide of fast-improving Chinese hatchback alternatives.

As revealed in December, the range will kick off from $57,800 (all prices are before on-road costs) for the 35 TSFI S Line front-wheel drive in Sportback five-door hatch and Sedan guises, bringing a $4200 price hike due to significantly more equipment, including a sporty body kit package.

According to Audi Australia Product Manager, Matt Dale, the improvements and specification upgrade add nearly $10,000 worth of previously-optional features as standard, offsetting the extra cost while dramatically improving the facelifted A3’s value for money.

“Our team's done a significant upgrade in terms of the A3,” he told CarsGuide earlier this month.

“There's a significant amount of customer value (coming) in that, almost $10,000 worth of added value to the car, and at a really sharp price position as well.”

Dale believes the rejig of the A3 range, which is now limited to the 35 TFSI S Line as well as the S3 quattro Sportback and Sedan from $88,800, proves the brand is committed to its long-lived small-car strategy moving forward.

“(Both the A3 and the smaller A1 Sportback) are important for us, because sometimes they are the first touch point a new Audi customer has to our brand,” he said.

“The team is working on product strategies to really imbue that customer value, to make them as exciting as possible for those new customers.”

Taking the emergence of Chinese rivals seriously, Audi Australia Director, Jeff Mannering, added part of that commitment to younger buyers is recognising new competitors and reacting accordingly – something the A1 Sportback and A3 range are in the box seat to achieve.

“I think every manufacturer is a competitor,” he revealed. “Because, and I think it's an opportunity as well, a lot of our customers… come from that segment into our segment, and vice versa. And they come from premium.

“I really believe that (China) has changed the landscape. So, I think from our point of view, what are we doing about it?

“We're focusing on the experience with the network that we have, the training that we put in, the way that you look to talk about repositioning a car, the advertising….

“We need to make sure that we stay above that, when you get to the showroom, the sales process… and (ensure) how seamless is it? And then even the delivery, and then what happens after, with aftersales (support).

“And when it goes wrong, and cars are just machines, after all, how do you handle the customer… and how do turn negative experiences into really good experiences?

“I think our infrastructure, the strength of our dealer network, is paramount, because you're paying a premium price versus a Chinese competitor and so there has to be something more than just the car.

“I think those little fundamental things are your competitive advantage over, you know, the cheapest segment of the market.”

Already a leading contender in the premium small-car segment against the BMW 1 Series and now-discontinued current-shape Mercedes-Benz A-Class (an electrified CLA series is expected to be unveiled shortly to take its place), the outgoing A3 nearly caught up with the closely-related Volkswagen Golf last year, recording 2375 sales versus the latter’s 2929 units.

The Audi also comfortably outsold the Honda Civic (966 registrations in 2024) and Peugeot 308 (150 units), though the MG4’s shocking 20 per cent-plus price slash in the latter part of last year helped propel the Chinese EV to nearly 7000 sales, making it the clear victor in the premium small-car class.

With the next-generation A3 set to join the CLA and others in electrifying later on this decade, Audi Australia is clearly laying down the groundwork to make sure it remains competitive with China.