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The premium compact car. If that concept means anything to you, then it's the car we look at here, Audi's A3 Sportback, that might well come to mind. True to the brand's Vorsprung durch Technik philosophy, this model has always aimed to set fresh standards in its fourth generation form and the further updated version of that model continues that quest with a smarter cabin and extra technology. The result is a car that should show you just how far things have recently progressed in this segment.
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Background
These days of course, this Audi faces strong competition, but back in 1996 when we first saw the A3 model line, the idea of being able to move a car up-market in class and appeal without increasing its size was new and rather different. Cynics dismissed it as a way of dressing up ordinary family hatches and charging a lot more for them. Customers though, loved the idea and by the time the second generation A3 arrived in 2003, BMW and Mercedes rivals had also arrived to swell the market.
Initially, those two brands struggled to produce products good enough to overtake Audi and the result was that nearly a quarter of a million MK2 A3s were pounding global roads by the time the third generation model arrived in the Autumn of 2012. It sold for nearly eight years until this more cutting-edge MK4 model arrived in 2020, which four years on was improved, then further enhanced in Summer 2026 to create the car we're going to look at here.
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Range data
| Min | Max |
| Price | 28650 | 63655 |
| CO2 (g/km) | 193 | 6 |
| Max Speed (mph) | 141 | 155 |
| 0-62 mph (s) | 8.1 | 4.7 |
| Electric WLTP-Rated Driving Range (miles) | 88 | 88 |
| Min | Max |
| Combined Mpg | 33.2 | 941.6 |
| Length (mm) | 4354 | 4354 |
| Width (mm) | 1816 | 1816 |
| Height (mm) | 1466 | 1466 |
| Boot Capacity (l) | 280 | 380 |
| Power (ps) | 150 | 333 |
Driving experience
There are no engineering or handling changes to this further updated A3. As before, everything about this car is designed to deliver on the concept of a Volkswagen Golf with just a touch more polish - and the driving experience it offers is no exception. If you're an A3 regular - or a graduate from a Golf - you'll find that this Audi has even more of the mature drive dynamics you'll be looking for, helped by a fully digital at-the-wheel experience and the optional embellishment of self-driving tech. The original version of this MK4 model got a little more involving to drive thanks to slightly sharper steering, a wider track and the introduction of a 'modular dynamic handling control system' that, based on steering movements, predictively co-ordinates interplay between all the car's dynamic systems - like a conductor with an orchestra - so the car can always be one step ahead of the drive inputs you want to make.
The core engine options here are familiar for mainstream customers - the 30 TFSI (116PS) and 35 TFSI (150PS) petrol units and the 35 TDI diesel (also with 150PS). Only the 30 TFSI can be ordered without Audi's familiar 7-speed S tronic dual-clutch auto transmission. There's supple multi-link rear suspension and with the 35 TFSI petrol model, the engine comes with an integrated 48-volt 'BAS' belt alternator starter-generator that powers a 12-volt main electrical set-up in which a 48-volt compact lithium-ion battery in the boot stores energy harvested via a 'KERS' kinetic energy recovery system. You can talk to your dealer about a highly-efficient plug-in e-hybrid version too, which has a large 25.7kWh battery capable of an 88 mile EV range.
If you've more to spend on a more sophisticated kind of A3 Sportback, you can also consider the 2.0-litre petrol turbo S3 variant, which gets 333PS and the torque-splitter system previously reserved for the RS 3. That RS 3 model continues in the range, it's classic 2.5-litre five cylinder turbo engine putting out 400PS.
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Design and build
As before, there's a choice of Sportback hatch or Saloon body shapes. And there are no visual exterior changes as part of the second update of this fourth generation model. So as before, there are large, angular front air intakes and a flat grille design with the brand's two-dimensional four-ring logo. The daytime running lights feature up to four different illuminating signatures that owners can switch between to individualise their car's appearance.
The major changes with this second update lie up-front inside, where there's a completely new, less angular redesigned dashboard incorporating Audi's latest 'Digital Stage' instrument and infotainment tech. This sees a single curved fascia panel incorporating two now-larger monitors, a 12.8-inch centre touchscreen and an 11.9-inch 'virtual cockpit' driver's instrument display. A strip of ambient lighting underneath the central display creates a 'floating' effect - which is nice. But all the climate controls have been relocated onto the touchscreen, which isn't. Smarter cabin materials now feature too - and scroll wheels have been added to the steering wheel, though the other wheel controls are fiddly touch-sensitive panels. There's also a wireless 'phone pad now more angled towards the driver and able to deliver up to 25-watts to charge devices more quickly.
Otherwise, things are much as before. Much effort has gone in to visually emphasise the width and spaciousness of this cabin, most notably with precise horizontal lines and surfaces. Not all of it's smoke and mirrors; the seats have been set quite low to improve headroom, plus there's plenty of shoulder room.
As previously, on the rear seat a six-footer can sit behind an equally lanky driver, but it's a fairly snug fit and, as you'd expect from this class of car, three across the back here only really works if the people concerned are of school-going age. Out back, the boot is as before, offering a capacity of between 380 and 1,200-litres. The PHEV version though, offers only 280-litres. The loading floor can be adjusted to different heights, and the rear shelf can be stored underneath it to save space.
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Market and model
Expect pricing starting from around £29,000, with a premium of £535 for the Saloon version. There are four trim levels - 'Tecknik', 'Sport', 'S line' and 'Black Edition'. The e-hybrid versions start from around £40,000, the S3 is priced from around £50,000 and the RS 3 is from around £64,000. There's lots of new tech available as part of this update, including virtual surround sound modes and remote functions allowing drivers to check on where their car is parked, how much fuel it has left and whether they've locked it. the adaptive cruise control system can now maintain the car's position even without lane markings. And the longitudinal and l;ane-guidance systems now operate with 'swarm data', allowing the car to adjust its own speed to the average speed of the road. A 'park assist plus & pro' feature allows you to stand outside the car and park it with an app on your 'phone. and 'trained parking' allows the car to memorise specific parking movements.
All the usual executive equipment items feature and this improved A3 is particularly digital and connected, thanks to numerous connect services, functions on demand, and an app store. Standard equipment features DAB+ digital radio and a new 12.8-inch central MMI touch display, along with the new 11.9-inch 'Audi virtual cockpit plus' instrument screen and an improved inductive smartphone charger. In addition to the two USB-C charging ports in the centre console in the front, two additional ports in the rear also come standard.
Other features include MMI navigation plus, along with the complete connect portfolio and access to the app store, which allows the driver to use a wide range of applications via the vehicle's display. By embedding the store, customers can directly and intuitively access popular third-party apps on the MMI touch display by means of a data link in the vehicle.
For our market, two individual infotainment and comfort functions can be added online via the myAudi app, even after the vehicle has been purchased. Functions include adaptive cruise control and high-beam assist. They can be booked for one month, six months, one year, three years, or permanently, depending on the customer's individual needs.
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Cost of ownership
Audi is continuing its electrification strategy in the premium compact class, hence the emphasis on the MHEV mild hybrid 1.5-litre 35 TFSI petrol model in this A3 range. The figures suggest that the base 35 TFSI S tronic variant manages 54.3mpg, with a CO2 return of 119g/km of CO2. The base 30 TFSI model manages up to 50.4mpg and 128g/km in manual form - or up to 53.3mpg and 127g/km as an S tronic auto. For the S3 petrol hot hatch, it's 33.2mpg and 193g/km.
Most A3 buyers will want the MHEV auto petrol model which uses the same sort of set-up we've already seen on larger Audi models. A 'BAS' belt alternator starter-generator that with this four cylinder engine, powers a 48-volt main electrical set-up in which a compact lithium-ion battery in the boot stores energy harvested via a 'KERS' kinetic energy recovery system. During braking, the 'BAS' package can recover up to 12kW of power and feed it back into the battery.
If the driver takes their foot off the accelerator at speeds between 34 and 99mph, the mild hybrid system will recuperate energy, while the car rolls in idle or coasts with its engine automatically switched off for up to 40 seconds. The belt alternator starter-generator restarts the engine the next time the accelerator is depressed, and does so faster and more gently than a conventional starter. All of this you'll particularly notice at urban speeds where the engine start-stop system is cutting in and out. The start stop range begins at just under 14mph, so you'll often find the car coasting up to the end of a traffic queue, a traffic light or a level crossing.
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Summary
In the search for a compact car that's also a premium purchase, there are probably more charismatic choices than this Audi A3. But we think there are few better ones. Light in bulk, heavy in technology, it's a logical evolution of a breed that's long been one of Britain's favourite company cars. This further improved version might look little different at first glance but it might feel so once you get to grips with the upgraded interior with its two sophisticated screens. Otherwise, things are much as before - which means that there's lot's to like. If you're one of those still questioning the need for a premium peoples' hatch, then in this Audi, you have your answer. From the outside, it's as home in Belgravia as it is in Brixton. But the interior is where this design really strides apart. You could be in a luxury car.
And of course, in many ways, you are. By pioneering the premium compact hatch segment with original versions of this model, Audi has in many ways redefined the meaning of automotive luxury, democratising it without the desirability being diluted. Other brands claim to have done the same of course and many have used a few more visual or dynamic fireworks to grab the attention. Ingolstadt though, doesn't think this A3 needs them and legions of loyal global buyers seem to agree. Cool, class-less and clever, it remains desirably definitive.
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