2025 Audi S3 Sedan First Drive: More of the Same, Only Better

This year marks the 25th anniversary of the Audi S3, the sporty variant of the A3 compact that made its first appearance in an era when the jellybean iMac was the last word in desktop computers and Star Wars fans were being whipped into a frenzy over The Phantom Menace. A lot has changed since then. For a start, though the A3 and S3 hatchbacks—called the Sportbacks in Audi-speak—are still available in other markets, America now only gets the A3 and sportier S3 as four-door sedans, the body variant first seen in 2014.

At first glance, the 2025 Audi S3 sedan, the performance variant of the A3, is evolutionary rather than revolutionary, a sensible mid-cycle upgrade of the fourth-generation car launched in 2020 that appears to address customer complaints about perceived quality and throws some extra performance into the mix for good measure. But appearances can be deceptive. Underneath the handful of cosmetic tweaks are mechanical upgrades that deliver improved performance and noticeably more responsive handling.

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To start with, the turbocharged 2.0-liter four under the bonnet sharpens its reflexes and delivers more grunt. Peak power has been increased by 22 horses to 328 hp from 5,000 rpm to 6,500 rpm, while peak torque is up 15 lb-ft to 310 lb-ft from 2,100 rpm to 5,500 rpm. Among the detail changes under the hood are a higher-pressure fuel injection system and revisions to the engine management system that keep the turbocharger spinning at a constant speed under light throttle and partial load for faster power delivery.

The seven-speed dual clutch transmission can now handle higher starting torque, which enables the little Audi four-door to launch harder off the line. With more power and more torque getting to all four wheels more rapidly, engineers claim the S3 sedan is a tenth of a second quicker to 60 mph than the 2024-model-year car. Based on our test numbers, that suggests a zero-to-60 time of 4.5 seconds. Top speed remains electronically limited to 155 mph.

Chassis upgrades include a new front suspension knuckle that doubles the amount of negative camber at the front axle to 1.5 degrees, and larger 14-inch front brake rotors. The most important change, however, is the adoption of the rear axle torque-vectoring system used on the hotter, faster RS3 sedan.

In simple terms the system uses two multi-plate clutches, each one located immediately to either side of the rear differential, to vary the amount of torque sent to each rear wheel. Each clutch has its own electronic control unit, which uses data such as wheel speed, longitudinal and lateral acceleration, steering and throttle angle, the gear selected, and the yaw rate—the speed at which the car is rotating around its vertical axis—to calculate how much torque to send to each wheel.

In theory, the torque-splitter system is designed to improve both agility and stability, sending more torque to the outside rear wheel to help better turn the S3 into a corner, and to the inside rear wheel to help counter oversteer when the limits of adhesion are exceeded.

And you only need to hurl the little Audi hard down your favorite driving road to feel the theory working in practice. Audi’s quattro all-wheel drive system has for years endowed its performance cars with high levels of cornering grip, though often at the expense of initial turn-in response and the ability to tighten your line mid-corner. The torque-splitter rear axle turns the S3 into an apex predator.

The change to the S3’s demeanor is so profound you need to recalibrate your driving style to make the most of the system’s capabilities. The trick is to go to power much earlier in a corner than you would usually do in an all-wheel drive car with 59 percent of its mass over the front axle, and use the extra torque sent to the outside rear wheel to effectively whip the tail around and tuck the nose into the apex of the corner.

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We’re not talking power oversteer here; it all happens quickly and concisely with nary a chirp from the tires. Essentially, the S3 just goes where you point it, with a minimum of fuss. That is, there isn't oversteer in most settings. Audi has used the torque-splitter to dial up the S3’s fun factor, and the system’s level of intervention depends on the drive mode selected. To make the most of its capabilities, Audi has added an extra drive mode, dubbed "Dynamic Plus" which, in addition to further sharpening the powertrain’s response, ensures as much torque as possible reaches the rear axle and that most of it is sent to the outside rear wheel when cornering. You don’t have to be Isaac Newton to figure out the result: As one Audi engineer wryly noted, Dynamic Plus mode endows the S3 with “a tendency to oversteer”.

The S3 is one of those rare performance cars that feels at home at almost all speeds on almost all roads in one of its sportiest modes—in this case, Dynamic. Which is just as well, because Audi’s mode selection protocol isn’t exactly easy to use, requiring you to toggle through all the options until you get the one you want. If you find the Dynamic mode ride too taut at low speeds, you can always use Individual mode to keep the powertrain responses sharp but switch the suspension to its more comfortable settings.

The Rest of the S3 Package

Visually, the 2025 S3 is distinguished by a new front fascia that features a wider and flatter execution of the single-frame grille with body-coloured trim underneath and strut-like structures supporting the front splitter. The new grille is flanked by larger, squarer vents with vertical outer edges.

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The LED and optional Matrix LED headlights now feature 24-pixel elements arranged in three rows on their upper edge. These allow owners to choose between four different digital daytime running light signatures using the central touchscreen. At the rear are redesigned taillights and a new rear bumper with vertical reflectors and a more boldly executed faux diffuser wedged between the signature quad exhaust.

New colors available include District Green, Ascari Blue, and Progressive Red metallics, and the iconic Daytona Gray is now available in a matte finish, complimented by redesigned alloy wheels. Speaking of which, 18-inch wheels are standard, with 19-inch wheels available as an option.

There have been no major revisions to the interior architecture, but Audi has invested in better materials and a higher level of standard equipment in response to criticism from media and customers that the S3 sedan’s cabin (and, by proxy, the A3 and RS3) wasn’t as premium as it should be. “Our main objective was to bring more quality into the car, to give it more charisma,” acknowledges A3/S3 product marketing chief Tobias Döbel.

Audi’s Virtual Cockpit instrument panel is now standard across the S3 range, and a reconfigured center console features a sleek new shifter. Instead of the 2024 car’s toggle, there’s a smooth, flush button that’s pulled to engage drive and pushed to select reverse. The flat-bottomed, three-spoke sports steering wheel is also new for 2025.

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The S3’s overall interior ambience is moody, its dark palette lifted by silver accents and beautifully executed contrast stitching. An optional interior lighting package, the most striking elements of which are door skins with 300 laser-cut openings that are backlit from a light source within the door, adds an extra splash of color and visual interest. New chrome trim on the air vents makes the otherwise narrow cabin look wider, too.

Yes, the 2025 Audi S3 sedan is more of the same, and then some, particularly in terms of the way it now goes around corners. All of which adds up to making it a compelling entry point into the world of German premium performance sedans, even if that trick rear axle promises to kick the price up slightly from the 2024 car’s base of $48,495 when it arrives in the U.S. this fall.