Against the backdrop of aggressive hot hatchbacks like the Audi RS3 and Mercedes-AMG A 45 S, it may seem that there is almost no room for the more modest Audi S3. But considering the price, which in Australia exceeds 105 thousand dollars (68 thousand US dollars) for the RS3, it becomes clear why the updated S3 2026 confidently occupies a place in the lineup as a more affordable, but still dynamic alternative. With a starting price of around 83,000 Australian dollars (54,000 US dollars), it combines Audi's signature style, all-wheel drive, and performance comparable to the VW Golf R and Toyota GR Corolla.
The S3 approached the updated model year noticeably fresher: the design became more aggressive, the power increased, and the restyling gave the body more character. Nevertheless, the appearance is still restrained: many may mistake the S3 for an A3 with the S Line package. There isn't even a signature badge on the grille, which makes the sedan almost a "sleeper" car - fast, but inconspicuous.
Under the hood is a familiar two-liter EA888 engine, which Audi has brought to 245 kW (329 hp) and 420 N·m of torque. This is a significant increase compared to the previous generation and more than enough for a brisk ride. But the main thing is the transition to a rear differential with torque splitting, borrowed from the RS3. Unlike the old S3 models, which were prone to understeer, the new version feels rear-wheel drive, and the rear axle can receive up to 100% of the traction, turning the sedan into a real driver's tool.
In Australia, the test car was equipped with the Launch Edition package, which includes 19-inch wheels, darkened mirrors, black exhaust pipes, and lighting with the S logo. The price is noticeably increasing, although competitors like the Golf R or Toyota GR Corolla cost significantly less.
The interior almost completely repeats the design of the A3: the same Audi Virtual Cockpit dashboard, the same 10.1-inch MMI screen, the same center console made of black lacquered plastic. Of the pleasant things - physical climate buttons and traditional buttons on the steering wheel. The front seats are trimmed with Fine Nappa leather, and Alcantara with slots illuminated by LEDs is used in the door panels. Sonos acoustics play at a surprisingly high level for a compact sedan.
Practicality remains a strong point of the S3: there is enough space both in the front and in the back, and the fit is comfortable for daily use.
On the road, the S3 turned out to be faster than the factory figures. The manufacturer claims 4.7 seconds to 100 km/h, but tests showed stable 4.5 seconds on dry pavement. The seven-speed S-tronic gearbox works quickly and smoothly, and a set of transmission and chassis control modes allows you to choose between comfort and a rigid sports setting.
The new differential works wonders. In Dynamic mode, the sedan actively rotates around its axis, allowing you to take corners with a slight drift. In Sport mode, the behavior becomes more neutral, and in Dynamic Plus, the S3 is surprising in how easily and quickly it transfers the load to the rear axle. On sticky Goodyear Eagle F1 Super Sport tires, there was enough grip even for aggressive speeds, usually inaccessible to cars of this class.
The engineers also increased the camber angle of the front wheels to 1.5 degrees and installed stiffer lever bearings, which significantly improved steering precision. On winding roads, the S3 shows itself as a real driver's car - fast, obedient and confident.
The sound is also pleasing: four exhaust pipes create a pleasant roar, and lively accents are heard when the gearbox is shifted. For maximum effect, a titanium Akrapovic system is available, although its price of 9,900 Australian dollars (5,800 US dollars) will not impress everyone.
At the same time, the S3 retains an important advantage - it does not turn into a tiring sports car in the city. In normal mode, the suspension becomes soft, the transmission works imperceptibly, and the car drives almost like a standard A3. This is a rare combination: real performance and at the same time comfort, allowing you to use the sedan every day.
After spending a week behind the wheel of the updated S3, it becomes clear that it is one of the most versatile compact cars in the segment. Perhaps track day fans will prefer the Toyota GR Corolla or Honda Civic Type R, but as an "every day" car with the ability to please with a drive at any moment, the Audi S3 stands apart. It feels equally good in city traffic jams, on mountain roads and on high-speed sections.
The Audi S3 2026 is a successful combination of power, all-wheel drive, a premium interior and a character that is revealed when the driver really wants it. That is why the new S3 does not just complement the Audi lineup - it becomes one of the most logical choices among compact sports sedans.
