Audi S3 News

The small car segment, especially on the premium and luxury end of the spectrum, has been very tumultuous over the last few years with hatchback and sedan sales plummeting, while SUV sales have climbed astronomically.In order to combat this, as part of our ongoing 2026 CarsGuide Car of the Year awards, we’ve combined small premium passenger cars and SUVs into this segment.It’s worth noting that each shortlisted small premium car mentioned below is inclusive of the entire line-up, though its entry price must be under $80,000 before on-road costs for this particular category.The following is a rundown of our top 10 sub-$80K small cars in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Note Mercedes-Benz's current A-Class, CLA and GLA were ineligible as they were unavailable for review.While many brands are fleeing this segment of the car market, this German small hatch and sedan is still offered in Australia in a wide range of trim levels and variants. Beyond the normal A3 variants, there’s the sporty S3 and the fire-breathing RS3.It notably made this shortlist due to the latter which is still offered with an iconic five-cylinder engine. However, we do wish it made just a bit more noise like the older models did.Beyond this, CarsGuide reviewers praised the A3 line-up for its capable and engaging driving dynamics, as well as its luxuriously equipped and premium-presenting interior.While the A3 hatch and sedan may be newer, the Audi Q3 small SUV has been soldiering on for a couple of years now without any major updates.The current model is reaching the end of its lifecycle and is set to be replaced by a new-generation model during 2026.Despite this, CarsGuide reviewers liked how the Q3’s exterior design is ageing, even in the polarising Sportback body style, plus the on-road manners are both elegant and fun.The new-generation version of the BMW 1 Series hatchback launched locally late in 2024, offering everything from everyday commuter trims to the M135 xDrive hot hatch.CarsGuide reviewers were impressed with its driving dynamics and outright performance, though fuel efficiency took a hit as a result.Additionally we liked the new and modern front-row layout, however the exterior design, especially at the front, likely isn’t for everyone.The X1 small SUV is the most popular BMW in Australia currently and for good reason.It launched locally in new-generation guise in 2022 to popular fanfare, then the all-electric iX1 variants joined the line-up in 2023, cementing its status as a benchmark small SUV.CarsGuide reviewers praised X1/iX1’s on-road manners, as well as the modern and high-tech exterior and interior designs. However, common European quibbles like tyre roar and suspension bumps can intrude into the cabin.The X2 is a swoopy ‘coupe’ SUV counterpart to the X1 small SUV and still notably offers both petrol and electric (iX2) powertrain options.While its exterior design is polarising and not for everyone, CarsGuide reviewers appreciated how polished the drivetrains feel from behind the wheel. The X2/iX2 is also affordable when compared to premium rivals from the likes of Mercedes-Benz and Volvo.The few dislikes were centred around the X2 M35i xDrive’s firm ride due to its large (and thankfully optional) 21-inch alloy wheels, as well as the slight reduction in boot capacity over the X1/iX1.This spicy Spanish small crossover SUV is the clear front-runner for Cupra in Australia. Arriving in 2022, the Formentor is offered in a range of variants from warm to hot, plus even a plug-in hybrid (PHEV) offering.CarsGuide reviewers appreciated the lifted hatchback looks and the smile-inducing driving dynamics, however some found the multimedia system to be a little finicky and the ride a little too far on the firm side.An oft-forgotten entrant in the small SUV segment, this quirky French electric SUV impresses with its sleek design, maximised interior space and reactive driving feel.There is currently only one trim level of the Megane E-Tech offered in Australia, the Techno EV60, and it’s limited by its 7.4kW maximum AC charging rate, plus the lack of features like connected services that are available overseas.A huge step away from the iconic Fortwo of the early ‘00s and ‘10s, the Smart #3 is the brand’s largest car in Australia to date.With unique looks and a premium cabin feel, the #3 impresses though the driver-assist features can be a little overbearing and the panoramic glass sunroof has no sunshade.More sore points are the average warranty coverage of five years or 150,000km, as well as the hefty servicing costs for an electric vehicle.While a number of these shortlisted vehicles are high-tech or electrified offerings, the Subaru WRX stands out as a purist sports car.Still featuring a turbocharged four-cylinder boxer engine and a manual transmission in certain trim levels, the WRX is offered in sedan and wagon body styles.CarsGuide reviewers praised the WRX’s dynamism, practicality and even value when compared to rivals with similar amounts of power. However, the WRX Sportswagon only comes with a continuously variable transmission (CVT) and doesn’t look as sporty as the standard WRX sedan.This vibrant and quirky Volvo electric SUV stands out on the road thanks to its stunning exterior design with boxy proportions.The interior also stands out, but sometimes not in the best of ways. CarsGuide reviewers found too many of the key features are tucked into menus on the central touchscreen, plus the lack of a proper instrument cluster was grating.

Audi has revealed its facelifted A3 and S3 hatch and sedan range with some design and performance upgrades, but with steeper pricing across the range.Scheduled to arrive from early 2025, the new A3 range kicks off at $54,800, before on-road costs, for the base Sportback 35 TFSI S line, representing an increase of $4200 on the pre-facelift version.It is still $1700 cheaper than the BMW 118 and $2100 cheaper than the Mercedes-Benz A200 hatchbacks, though.The sedan version, meanwhile, starts at $57,800 (before on-road costs), a rise of $4600 over its predecessor but still $600 cheaper than the A200 sedan.The more powerful 40 TFSI Quattro all-wheel drive variant, has been cut from the range for now, meaning customers are left with a single-variant front-wheel drive A3 lineup.CarsGuide has contacted Audi Australia to determine whether it plans to add it to the lineup in the future.In return for the higher price point, Audi has equipped the A3 with S Line packaging, which adds an S roof spoiler (hatchback only) and sportier S Line front and rear bumpers.There are also high-gloss exterior styling highlights such as anodised aluminium window strips and a blacked-out Audi emblem.Inside, Audi has reconfigured the A3’s cockpit with new air-conditioning vents, a bigger 12.3-inch multimedia touchscreen and a fully-integrated gear shifter.S Line packaging adds sports front seats with integrated headrests and four-way lumber support, as well as heating and ventilation functions.Headlining comes in black with aluminium inlays, while there are stainless steel sports pedals and a multifunction steering wheel with the 'S' emblem and perforated leather stitching.A ten-speaker audio system remains standard as well as a wireless charging pad.Power is still derived from an 1.5-litre four-cylinder petrol engine, which is paired with a 48-volt mild hybrid system.Together it delivers 110kW/250Nm to the front wheels through a seven-speed dual-clutch transmission.The S3 has seen its power upped by 17kW/20Nm on its punchier 2.0-litre turbocharged four-cylinder petrol engine to 245kW/420Nm. The S3 rockets from 0-100km/h in 4.7 seconds with a limited top speed of 250km/h.The rise in power comes thanks to the addition of an RS3-derived torque splitter and new dynamic plus driving mode. Both features work together to distribute torque to the rear wheels more efficiently, while improving handling and agility.Braking performance has also been improved with larger perforated front brake disks fitted with new two-piston callipers, while a new Akrapovic sports exhaust with a titanium silencer adds a more distinct exhaust note.Inside, the S3 further differentiates itself from the A3 with Nappa leather upholstery that includes diamond stitching with 'S' embossing, black microfibre inlays and an auto-dimming interior mirror.There are selectable daytime running light signatures on the A3’s matrix LED headlights, along with ambient interior lighting and three-zone climate control.The S3 range will start at $3400 more for the S3 sportback and $4427 for the sedan.Both models carry a five-star ANCAP safety rating and are covered by a five-year/unlimited km warranty.All prices are at before on-road costs

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