This is the 2025 Audi S3, positioned perfectly between the understated A3 and the bonkers RS3. This year, Audi has packed in everything we love: increased power, improved handling, and a special feature borrowed from the RS3.

The last redesign of the Audi S3 was in 2022, so this year brings a significant mid-cycle update. While the changes may not be immediately obvious, they are there. The headlights and taillights have a fresh look, the grille is now framed with body-colored accents, and the rear diffuser has a bolder design. Inside, the updates are just as subtle, featuring enhanced interior lighting and a new shifter among the key changes. But let’s be honest, what really matters is how it drives.

Under The Hood

The well-known turbocharged 2.0-liter four-cylinder engine now delivers an impressive 328 horsepower and 295 pound-feet of torque (the European model offers 310 lb-ft). This marks a 22 horsepower increase compared to last year. Power is transmitted through a 7-speed dual-clutch automatic transmission. Additionally, the throttle response has been enhanced with a new preload feature that keeps the turbo active during low-demand situations, a technology adapted from the Mk8 Volkswagen Golf R ‘20 Years Edition (which isn’t available in our market).

The seven-speed automatic distributes power to all four wheels, and Audi claims that full-throttle upshifts are about 50 percent faster. According to Audi, the S3 can accelerate to 60 mph in just 4.4 seconds, which is 0.1 seconds quicker than its predecessor. I believe it might be even faster than that.

How does the turbo preload feature work?

The preloaded turbocharger maintains a steady speed during overrun mode, enabling the engine to generate power more rapidly when you really need it. This is aided by the throttle valve that remains continuously open. When the driver releases the accelerator and then presses it again, it facilitates a quicker torque build-up, significantly enhancing the engine’s responsiveness.

AWD System

Another piece of technology that’s been borrowed is the rear torque splitter from the sportier RS3. It features electronically controlled clutches on each drive shaft that distribute torque between the rear wheels, ensuring power is directed where it’s most required. It can transfer up to 100 percent of the torque to either wheel.

Wheels and tires

You get the choice of 225/40 run-flat summer tires or an available 19-inch wheel with 235/35 conventional summer tires. The front rotors are now bigger, measuring 4 inches; no changes to the rear brakes.

Driving

The S3 is an impressive all-around vehicle, handling city driving with ease and offering great fuel efficiency on the highway. However, when faced with a twisty road, it truly shines, competing with the very best. The earlier model felt more like a long-distance cruiser, but Audi has made significant enhancements (including increased power, a more responsive gearbox, and the addition of the rear torque splitter from the RS3) that have greatly elevated the S3’s performance. It boasts the stability and balance of an all wheel drive, making it an excellent choice for any season, while the technology adds excitement and allows the S3 to feel more like a rear-wheel drive car when desired.

Attack a twisty road, and the S3’s transformation is so significant that you’ll need to adjust your driving approach to fully utilize its features. The key is to apply power earlier when entering a turn, which allows the additional torque directed to the outside rear wheel to help swing the back end around and guide the front into the corner’s apex. too slow and it will understeer ever so slightly, but go against all of your logic and pile on the power, and you will be rewarded.

No need to panic, though. If the S3 detects that you’re oversteering excessively, especially on a slippery surface, it can adjust the power to the inside wheel, helping to realign the vehicle.

Need a crazy launch?

Well, you can simply press the drive-select button and access Dynamic mode, then unlock the new Dynamic Plus feature. You’ll have to tap the screen again to confirm your desire for maximum performance. This extra step is necessary when changing traction or stability control, but it also enhances the experience. In this mode, launch control is enabled; to use it, press both pedals down and then let go of the brake to take off.

I have to give a shoutout to the seats, which feature excellent quilting and provide support where it’s needed the most. The back seats are nothing to write home about and feel a bit tight, but you do get vents and power.

The 2025 update has enhanced the interior without making drastic changes. The drive selector has been revamped, the infotainment system now features a 10.1-inch touchscreen, and stylish additions like ambient lighting shining through the perforated leather of the door cards have been included. One of the great perks now is that the S3 comes with more standard features, and all trims of the car share the same interior technology.

Anything bad, yes, the piano black plastic on the center console is probably the cheapest looking part of the interior, and it shows up smudges and marks very easily. My OCD kicks in every time I see a fingerprint or mark on it, so I find myself carrying a microfibre cloth for both the touchscreen and the gearshift surround.

Cargo Space

At 8.3 cubic feet, the trunk is rather small, and it’s at these times that you wish Audi offered the sportback versions the rest of the world gets. We don’t, so I should stop complaining.

Pricing

Base prices start at $48,700, but this one is a Prestige trim, so that adds $6,200 and gives you things like Adaptive Cruise control, Animated exterior lights, a head-up display, and Audi MMI navigation plus. Add the black package for $1,650, which gives you those 19-inch wheels with summer tires and black exterior trim. On the inside, for $1,100, are these fine Nappa leather seats.The S Sport package for $1,000 gives you those red brake calipers and s sports suspension. Finally, the black roof is $300, making the total $60,840

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Verdict

The S3 was already a pretty good luxury sport compact, and the updates for 2025 have made it even more attractive. It’s tough to find cars in this price range that blend speed with practicality like the S3 does. Audi has really enhanced the S3 experience, and it’s paying off. The improved drivetrain technology adds to the car’s appeal and should keep competitors at bay for a while.

2025 Audi S3 Numbers

BASE PRICE: $48,700
AS TESTED PRICE: $60,840 (Prestige Trim)
VEHICLE LAYOUT: Front-engine, all-wheel-drive, 5-passenger, 4-door sedan
ENGINE: 2.0-liter turbocharged and inter-cooled DOHC 16-valve inline-4
POWER: 328 hp @ 5,450 rpm
TORQUE: 295 lb-ft @ 2,100 – 5,500 rpm
TRANSMISSION: 7-speed dual-clutch automatic
0-60 MPH: 4.5 sec
CURB WEIGHT: 3,549 lb
CARGO VOLUME: 8.3 cubic feet
TIRES: Goodyear Eagle F1 235/35R-19
EPA COMB/CITY/HWY:  26/23/31 mpg
OUR OBSERVED FUEL ECONOMY:  23.1 mpg
PROS: Effortlessly quick, more poised, superb handling, lovely interior
CONS: Limited trunk space