Peugeot 408 vs Audi A3

What's the difference?

The Peugeot 408 GT Hybrid delivers heaps of standard equipment and safety tech for what is now a much more competitive price. It’s also super fuel-efficient, which is right for these turbulent times, offers thoughtful practicality and the wagon-fastback-crossover-SUV look is striking. The price paid for miserly economy is a peaky small-engine powertrain and the ownership promise isn’t exactly class-leading. That said, it deserves consideration in its new, even more competitive under $60K mid-size SUV segment.

Closing in on $60,000 for a small car isn’t cheap. Ask a car dealer and they might even say the hatchback is a good way to get someone into a showroom to eventually look at an SUV.

But I reckon you’d be doing the A3 a disservice to count it out. It’s always been one of those cars that does everything well, and with this current facelift manages to keep its practicality without becoming boring.

It looks good on the outside, it’s smart on the inside and it’s fun to drive while remaining sensible. Even if you get it in bright yellow.

Peugeot Design Director Matthias Hossann has been guiding the brand’s look and feel since 2020 and the result is a recognisable approach across the range with enough flexibility to give each model its own personality.

Recurring themes include the dramatic, fan-like grille with body-colour elements, narrow angled LED daytime running lights (DRLs) slicing through the outer edges of the nose and sinister tapered headlights set into the front corners.

The rear end maintains the visual drama with a stacked, angular treatment sectioning off the ‘Claw Effect’ LED tail-lights (the Peugeot brand mark is a Lion), chamfered mid-section and chunky bumper.

And among what increasingly feels like a mass of same-same newcomers the 408’s sloping turret and high, wide haunches give the car a distinctively sporty fastback look.

The interior is classy and clean although the almost uniformly grey colour palette is unrelenting.

The two-tier dash adds visual interest and a combination of sweeping curves and clean, straight lines around the cabin lift the tone. Nappa leather trim with the ribbed seat centre panels using perforated hide also looks classy.

But then we come to the ‘iCockpit’ instrument display and steering wheel combination. It’s based on the idea that reducing the size of the steering wheel and lowering its position while flattening its top and raising the location of the instrument binnacle is a better solution than the traditional look-through-the-steering wheel approach.

It doesn’t work for everyone and it doesn’t work for me. As noted in previous Peugeot reviews, after more than a decade in existence various members of the CarsGuide editorial staff continue to struggle with the arrangement, while others love it. 

For me, the wheel feels too low, yet the top of it obscures the lower part of the instrument panel. While it may work well for others I see it as the answer to a question no one was asking.

Eye of the beholder and all that, sure, but the A3 looks cool from the outside. It’s got this angular design but manages it without being too aggressive or busy with other design elements, so it still has a ‘premium Euro’ feel to it.

Shooting pics of the car for this review, the harsh light accentuated its sharp lines. It looks sculptural rather than just some little blob. 

At the same time, thanks to the proliferation of sports design packs like the S Line, The A3 looks like it could be an S3, almost. Which makes sense, because the front bumper and rear diffuser as well as the roof spoiler are all partly inspired by RS models.

New for the A3 is the flat, 2D Audi badge, the model name on the B pillar and the new font for its name on the tailgate. 

The lights in the cluster are able to look narrower than before thanks to their customisable settings, which allow you to choose the light signature, while the grille has a flatter appearance and the air intakes are bigger. Even the wheels look like they’re from a sports car.

Whether you’d have the A3 in the Python Yellow of our test car is another thing. I don’t mind a loud colour but I reckon a bit of 'District Green', 'Ascari Blue' or 'Progressive Red' would be the vibe.

Also, any colour that isn’t white is a cost-option on the A3, all of them coming in at $1350, except Ascari Blue which is an Audi Sport colour and costs $1850.

Speaking of the vibe, inside the A3 feels properly nice. It’s not just a spruced up Golf in there. There’s proper Audi character to the car, though that means plenty of piano black trim to get smudgy.

Audi’s done a good job making the layout look sleek without resorting to locating all the controls in the screen. There are design elements in the cabin that aren't strictly necessary but are worth doing for the way they look.

Things like the way the vents flank the driver display or the trim inlay on the passenger side of the dash.

At close to 4.7m long, around 1.9m wide and a bit less than 1.5m tall with a 2790mm wheelbase, the 408 sits in the middle of the typical mid-size five-seater footprint.

Ample room in the front, although the lower section of the two-tier dash protrudes a fair way towards the driver and front passenger and the centre console is broad so it feels snug rather than airy.

Storage includes generous door bins with room for larger bottles, a lidded (and illuminated) bin between the seats that doubles as a centre armrest, two cupholders in the console with an oddments tray ahead of them and a decent glove box with an extra pocket built into the lid.

Switching to the rear, sitting behind the driver’s seat set for my 183cm position, there’s loads of leg- and headroom and enough width for three adults when required and more than enough for a trio of up to mid-teenage kids. Centre rear is less of a short-straw position, too, thanks to a relatively low and flat central tunnel.

The lack of a fold-down rear centre armrest is a miss mainly because it means there are no cupholders in the rear. But there are decent door bins with a space for smaller bottles, netted map pockets on the front seatbacks and a storage cubby at the back of the front centre console.

Speaking of which, individual air vents in the back of that console are a welcome addition.

 The boot is large for the class at 508 litres (VDA) with the rear seat upright and 1583 litres with the 60/40 split-folding backrest folded down. The power tailgate (with foot sensor and pedestrian detection) also makes life easier.

Other thoughtful touches include four load tie-down anchors, a netted pocket on the right-hand side, elasticised straps on the left-hand side, specific lighting and a pair of bag hooks.

Power and connectivity options include two USB-C sockets, a 12-volt outlet and a wireless phone charging pad in the front, another two USB-Cs in the back and a second 12V plug in the boot. So no problems with charging capacity for phones and other devices.

Maximum braked trailer towing capacity is a useful 1300kg (750kg unbraked) but we have to put a big black mark against provision of a repair/inflator kit rather than a physical spare. Not good enough for the Aussie market. 

Starting from what’s right in front of you as a driver, the steering wheel is the same as in bigger, more expensive Audis. That’s a good thing, because it’s nice to hold, has a good shape for the nine-and-three hand position and it’s not too thick. 

As well as the nice, clear buttons on the wheel, you’ve got some physical controls for the climate control and some of the vehicle functions like parking assist and stop-start under the multimedia screen.

For a car this size, the 10.1-inch central touchscreen is plenty big enough, and the fact it doesn't sit up high over the dash is great. It's like a perfect arm's length for your standard-sized adult (like me). I can reach the other side of the screen without needing to lean.

The fact there’s no head-up display is a bit of a let-down, but the now-standard 12.3-inch driver display is very good. It’s configurable yet clear, and means you can get detailed navigation information in front of you rather than having to look to the multimedia screen. 

The test A3 has genuine leather upholstery, which is $1100 extra. Not the most you’d pay for leather seats in a Euro, and the seats are comfortable. They're nicely bolstered, the drivers’ side is electrically adjustable and the leather doesn’t feel hard or rough to the touch.

Sitting behind my own seating position in the second row is a little tight, however. At 178cm, my knees almost touch the seat in front. There's also no sunroof, and even though there's just about enough light, that omission doesn’t help the cramped feeling.

There are, like the front, two USB-C ports and the air vents in the back, the latter separately adjustable to avoid arguments, though the cupholders in the armrest are in an awkwardly central position.

Behind that, under the 380-litre boot's floor is a space-saver spare tyre. That's better than some SUVs designed for family adventures that only offer up an inflator/repair kit. Keep that up, Audi. Good job. Well done. 

If you fold the rear seats, you get 1200 litres of space. Interestingly, those luggage space figures are the same as the BMW 1 Series.

For $54,800, before on-road costs, the A3 can be had as a hatchback - aka Sportback if you’re Audi - or for $57,800 as a sedan.

It’s a little over $4000 more expensive than the pre-facelift version, but Audi reckons there’s about $10,000 more value than before.

And value can be an important when you’ve got the BMW 118 ($57,600) and Mercedes A200 ($61,900) not sitting too far away in terms of price.

Part of the A3’s value equation comes thanks to the addition of the S Line package as standard, which not only makes the A3 look sportier but adds heated sports seats, aluminium interior trim elements and stainless steel on the pedals.

There’s also a larger 12.3-inch screen for the driver display as standard rather than an option. Audi has also reconfigured the air vents for the three-zone climate control, as well as adding a new style gear shifter.

Continued standard kit on the A3 is a wireless phone charger as well as a 10-speaker sound system, an ambient lighting package, a leather steering wheel and synthetic leather trim on the seats which all make for a sporty feel on the inside.

But on the outside there’s also customisable LED headlights and daytime running lights, as well as dynamic indicators and a set of 18-inch alloy wheels.

The car we tested also has a couple of options, its 'Python Yellow' paint is $1350 which I’ll come back to in the design section, but there’s also optional leather seats for $1100 and an electric tailgate for $660, the latter certainly worth it, I reckon.

All up, the car on test comes to $57,910, before on-roads, so even an optioned-up A3 comes in at either the same or less than its closest rivals from BMW and Mercedes-Benz.

The Peugeot 408 Hybrid is powered by a 1.2-litre, turbo-petrol, three-cylinder engine producing 100kW at 5500rpm and 230Nm at 1750rpm.

This compact, all-alloy, direct-injection unit works in concert with a single 15.6kW/51Nm 48-volt electric motor integrated into the six-speed dual-clutch auto transmission and energised by a 0.9kWh lithium-ion battery.

Drive goes to the front wheels only and Peugeot claims a 0-100kmh sprint time of 9.4 seconds.

The A3 is powered by a 1.5-litre, turbocharged four-cylinder petrol engine that makes 110kW and 250Nm.

It drives the front wheels via a seven-speed dual-clutch auto transmission and it can hit 100km/h in a claimed 8.1 seconds.

It’s also got a 48-volt mild hybrid system to help with efficiency, though you’d need to be told about it to notice. It also helps with the A3’s (smooth) stop-start system.

The 408 Hybrid’s official fuel consumption figure for the combined (urban/extra-urban) cycle is 4.5L/100km, the 1.2L turbo triple emitting 102g/km of CO2 in the process.

And it’s important to point out those official (ADR 81/02) numbers for the 408’s consumption and emissions are better than any of the direct competitors we’ve called out in the ‘Price & Features’ section above. 

Over a week of mainly city and suburban running with some freeway sections thrown in, we recorded an on-test average of 6.0L/100km. Impressive for a mid-size crossover weighing in at a bit over 1.4 tonnes.

Brim the 52-litre tank with minimum 95 RON premium fuel (ethanol blends not recommended) and using our real-world figure you can expect a handy driving range in excess of 860km.

The A3’s 50-litre fuel tank needs to be filled with RON 95 premium fuel and it’ll drink a claimed 5.3-litres per 100km on the combined (urban/extra-urban) cycle.

Theoretically you’re topping 900km a tank there, but given how fun this car is to drive you’d have to be well behaved to get even close.

For reference, whenever I was on a normal, day-to-day drive on test the A3's trip computer was returning figures in the mid to high sixes.

Even with the assistance of an electric motor in the transmission and a turbo on the engine, a 1.2-litre, petrol three-cylinder powering a more than 1.4-tonne five-seat car is always going to be an interesting equation.

And in practice, although the small triple’s peak torque (230Nm) is available from just 1750rpm it lacks the smoothness of larger capacity mild- and full-hybrid combinations. Especially at slower speeds, the powertrain feels relatively edgy and agitated.

Outright acceleration is fine (claimed 0-100km/h acceleration is 9.4sec) with decent mid-range pulling power for confident overtaking or decisive lane changing (a 15.6kW/51Nm boost from the motor playing its part) and the dual-clutch auto is a more polished example of what can be a fractious device. 

But engineering and tuning for maximum fuel-efficiency has an impact on driveability. For example, we noticed the air-conditioning system’s output softened at standstill, which led to some mild window fogging in stop-start traffic on a particularly humid morning. Haven’t seen that for a while. 

The strut front, torsion beam rear suspension delivers a compliant ride and responsive handling in classic Peugeot fashion. The steering in particular points accurately and provides good road feel. 

We’ve covered the intricacies of the i-Cockpit instrument and steering wheel configuration in the Design section as its shortcomings (for me, anyway) are more ergonomic than dynamic.  

The car is relatively quiet, thanks in part to sound-dampening acoustic glass and the Michelin e.Primacy tyres (205/55) which also grip persistently if you decide to slice through your favourite set of corners. Push the engine harder and it’s revvy note and exhaust rasp will start to make their presence felt. 

Regenerative braking is helpful and the physical brakes (ventilated discs and the front and solid rotors at the rear) are nice and progressive.

The front seats are firmer than the Peugeot norm but remain comfy enough and they provide enough side support to keep you well located. 

Despite the swoopy fastback design, all-around vision is surprisingly good and an overall length under 4.7m, an acceptable 11.2m turning circle, a clear reversing camera and a 360-degree camera view make parking straightforward. 

First things first, the A3’s exterior and S Line pack are a clue to the way the car drives. It’s probably not the perfect car if you like a cushy, soft ride. 

Its suspension errs towards the stiffer side of things, and certain bumps can feel more significant than they need to. But even on particularly bad roads or tram tracks in the city the dampers do a decent job of soaking up the harsh stuff.

It also means there’s more road noise than you’d like on some older highway surfaces, but only in a way that might get annoying if you’re on a road trip with the stereo off for some reason.

The upside of that is its steering feels well weighted and accurate. Plus, the way it handles and corners feels like a bit more grunt would make this a proper driver's car.

It’s not too intense, and there’s enough feedback to make it feel like the A3 shouldn't be a city-dweller only when it comes to driving.

Of course, it’s a hatchback, so you've got the advantages that come with less weight and a lower centre of gravity. 

It doesn’t have enough weight to push into understeer more than you’d like on a tight corner. But it also doesn’t feel so light that you’re not sure how it’s going to behave under sharp braking.

The A3’s drivetrain, despite looking underwhelming on paper, feels practical on the road. Sure, 110kW isn't anything wicked, but its 250Nm feel like they’re working in the right places - that being between 1500 and 3500rpm. 

It isn't blisteringly quick but even with the seven-speed transmission operating in default auto mode it usually feels like it's in the right place, let alone chipping in with 'manual' shifts via the paddles or shifting drive modes. The A3 has a choice of 'Normal' and 'Sport' shift settings.

You might be a little disappointed if you thought you’d be getting anything approaching a hot hatch, but for an entry-level model the A3 more than holds its own. It’s a solid platform that performs well without compromising too much when it comes to daily driving ability.

Tested in 2020, the A3’s been awarded a maximum five-star rating from ANCAP which applies to the facelifted version.

Six airbags and a suite of active safety tech helped contribute to this, though, whether it would pass with five stars under ANCAP’s current assessment protocols isn’t certain.

That’s likely only down to its relatively non-invasive safety warnings and mild assistance with things like lane-keep and speed warnings.

If you’re someone who’s likely to turn off most of the electronic assistance, the A3’s systems are at a pretty good level as standard.

It’s missing some modern kit like surround-view parking cameras but it does have front and rear proximity sensors and things like rear cross-traffic alert.

Peugeot covers the 408 with a five-year/unlimited kilometre warranty, which is perilously close to sub-par in 2026 with an increasing number of brands at seven, eight and up to 10 years conditional. The battery warranty at eight years/160,000km matches the market.

Roadside assistance is included for five years, service is recommended every 12 months/15,000km and pre-paid servicing is offered across three-, four- or five-year plans, with the latter at $2070.

That’s a not insubstantial average of $414 per workshop visit, which Peugeot says will save you $893 compared to pay-as-you-go over the five years.

For reference, a Toyota RAV Hybrid service for any of the first five years is $260, although pricing steps up after that period.

Peugeot has a well established network of 31 dealers mainly covering major cities and key rural areas, primarily on the east coast. Currently, no presence in Tassie or the Northern Territory, while Perth and Adelaide are the only representation in WA and SA. 

Audi offers a five-year/unlimited kilometre warranty, which is about par for a premium brand, but it also offers five years' free roadside assist and the ability to pay to extend the warranty.

Servicing is $2520 for a five year plan, but the extended two years of 'Audi Advantage' warranty is $3250 and comes with unlimited kilometres, roadside assist and covers two services.