Audi A3 2026 review: Sedan TFSI quattro 150kW S line

It takes a brave carmaker to launch a new sedan variant into the market, given Australia’s obsession with SUVs.

Kudos to Audi for expanding its A3 small sedan and hatch line-up with a new grade that sits at the top of the tree, before you get into S3 and RS3 performance car territory.

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You also get an extra helping of standard gear, different wheel designs and more premium options.

The new TFSI 150kW grade is offered in Sportback hatch guise for $62,800, before on-road costs, and the sedan we tested from $65,800.

Focusing on the sedan, that price is an $8000 bump from the entry-grade 35TFSI. On the flipside, it represents a $16,000 saving compared with the spicy S3 sedan, and you get a nice dollop of performance with the 150kW engine. More on that later.

If you’re considering other small premium sedans, there are really only two - the BMW 2 Series Gran Coupe in 220 M Sport guise at $63,400 and the Mercedes-Benz A250 4Matic from $75,400. However, Mercedes recently dropped the A-Class sedan from its line-up so you’d be looking at whatever’s left in dealer stock.

The Audi is $2400 dearer than the BMW. Their performance figures are similar, although the Audi gets 20Nm more torque and it’s one second quicker to 100km/h. Standard gear wise they line up pretty well.

Equipment highlights include 18-inch alloy wheels, S line styling, keyless entry and start, heated electric folding, auto-dimming exterior mirrors, heated front seats, power-adjustable front seats, three-zone air-con, ‘MMI navigation plus’, digital radio, wireless Apple CarPlay and Android Auto, 10-speaker audio and a solid list of standard safety gear.

Our test car came fitted with a panoramic sunroof ($2000), metallic paint ($1350), black exterior styling package ($1200) and the 'Premium plus package' ($1990) that adds a head-up display, privacy glass and Sonos sound system. That brings the price to $72,340.

The current-generation Audi A3 landed in Australia in early 2022 but it benefited from a mid-life facelift in early 2025.

Whether you opt for a sedan or hatch will depend on your own preferences and needs. I prefer the hatch design but the sedan tested here is handsome, if a little conservative. The optional black exterior styling package adds a sinister vibe. It’s sleek enough and the current Audi lighting design looks good, but it’s not breaking any rules.

The A3’s interior is a mixed bag. The leather-appointed front sports seats look schmick and offer excellent support and comfort, while the three-spoke ‘S’ perforated leather steering wheel looks and feels perfect.

I’m not sold on Audi’s current interior design. Angling the multimedia and central controls towards the driver is a good thing, but it creates this pointy centre element to the dash that results in a feeling of being hemmed in as a front passenger. The air vents have an appealing shape but there’s a lack of cohesion to the overall layout.

The console design is functional with two cupholders, a small central bin, wireless charger and two USB-C ports, but the electronic park brake lives on a different panel to the gear shifter. BMW’s current set-up of having everything housed in the same section feels more considered.

Audi gets a massive tick for keeping physical controls and buttons. The air-conditioning controls are housed conveniently just under the central screen and they are easy to use. Below that are buttons for hazard lights, the 'Drive Select' drive modes, auto parking and the idle stop function. Thank goodness you don’t have to trawl through a series of sub-menus to turn that off.

The 10.1-inch multimedia screen looks small by today’s standards, but the system is mostly logical and easy to navigate. When Apple CarPlay is active, the Apple menu is displayed on the right of the screen, next to Audi’s in-house menu. It doesn’t take much to accidentally press the far right screen and end up in the wrong menu.

Audi’s 12.3-inch ‘Virtual cockpit’ digital driver display is excellent and has for many years been one of the best in the business.

One final gripe from the driver’s seat is the cruise control stalk on the steering column. It feels like an afterthought and it’s hard to see. Surely those controls would fit on the steering wheel?

Rear-seat legroom is decent without being generous and there’s more than enough headroom for this 183cm (6.0') tall reviewer. Space across is okay but you wouldn’t want three adults back there.

There are two more USB-C ports in the rear plus adjustable lower air vents and two map pockets. A fold-down centre armrest features two cupholders, while only narrow bottles will fit in the rear doors.

The boot can swallow 425 litres and that increases when you lower the 40/20/40 split-fold rear seats. The boot is long but has a high floor. There’s a temporary spare wheel hiding under that floor.

On the road is where the little Audi sedan shines. For the most part.

The new grade is powered by VW Group’s excellent 2.0-litre turbo-petrol engine delivering 150kW of power and 320Nm of torque. It’s paired with a seven-speed dual-clutch auto transmission and drives all four wheels via Audi’s 'quattro' all-wheel drive set-up.

There’s a lot to like about this powertrain, including the engine note. It sounds pitch perfect when pushed.

Turbo lag is evident on take off and sometimes it’s more noticeable than others. But when you accelerate already on the move, it picks up speed rapidly. It’s so responsive.

Sure, it’s not as punchy as an S3 or RS3, but for a non-performance grade, this 150kW A3 is plenty quick.

Steering response is excellent. The A3 changes direction without hesitation, which is something of an Audi trait.

The brakes are strong and the seven-speed transmission changes gears at just the right moment, although if you switch from 'Comfort' to 'Dynamic' mode, the transmission occasionally holds gears a little too long.

Dynamic mode also improves response and makes the engine note a little shoutier.

The A3 150kW TFSI sedan offers loads of grip which comes in handy in corners. It remains flat in tight bends and feels infinitely chuckable.

The payoff is the ride quality which is firm, meaning you feel potholes, road joins and everything in between. It’s not busy, however. And it’s not so sharp that it’s a turnoff. Simply something to be aware of if you value comfort above all else.

The grippy but low-profile Nexen 225/40/R18 tyres are partly to blame for this, as is the sportier suspension tune.

It’s not the quietest cabin with some exterior noise like coarse chip road surfaces making their presence felt.

On the plus side, the advanced driver assist tech is unobtrusive for the most part.

My final fuel economy figure according to the trip computer was 7.7 litres per 100km, which is more than the 6.6L/100km official claim. In fairness, I could’ve reduced that figure if the A3 wasn’t so much fun to drive.