2025 Audi RS3 review: Australian first drive

The world of hot hatches is a fertile one, with a slew of options available to buyers who like the fun and performance of a sports car in a hatchback-sized package that doesn't break the bank.

It’s a tried and true formula – one that has been a mainstay of the automotive world for over 50 years.

But not all hot hatches are created equal. At one end of the spectrum you have budget-priced pocket rockets that won’t break the bank but still deliver driving enjoyment by the shovel load.

At the other end, you have this, the Audi RS3 which has, since 2011, reimagined the hot hatch formula – a snarling beast of a thing with near-supercar-like performance at around the fifth of the cost of a Lamborghini or Ferrari.

Audi has updated its pocket rocket for the 2025 model year with a thorough refresh that brings revised exterior styling, a refreshed cabin, new tech and improved driving dynamics. Audi has also bumped up the price, meaning that for the first time the RS3 strays into six-figure territory.

Two variants make up the range, the RS3 Sportback (Audi-speak for hatchback) and RS3 Sedan. The are priced at $104,800 and $107,800 respectively, representing increases of $9085 (Sportback) or $9585 (Sedan). That sees both models nudge over the $100K barrier for the first time.

Rivals are thin on the ground – as thin as the rarefied air found at the lofty heights the RS3 plays in. The most obvious rival is the Mercedes-AMG A45 at $122,500 before on-road costs. Buyers who prefer a sedan could consider the A45 twin-under-the-skin Mercedes-AMG CLA45. It’s priced from $129,300 before on-road costs, a direct rival to the RS3 Sedan.

And then there’s the BMW M2 Coupe, a different animal for sure, but a close match in terms of outright performance, even if it gets there using a different six-cylinder-sized formula. It starts at $127,300 in either manual or automatic trim.

The M2 is an interesting comparison, as it is Munich’s pocket-brawler that this new RS3 bested to claim Nürburgring Nordschleife bragging rights, taking more than five seconds off the previous record held by BMW around the hallowed German track. The RS3’s time? A staggeringly quick 7min 33.123sec to claim the ‘compact’ production car class lap record.

So we know it’s fast, and faster than before. But what else is new on the 2025 Audi RS3? Let’s take a closer look.

External changes are minimal and subtle. There’s a flatter and wider ‘single frame’ grille up front, redesigned 19-inch alloy wheels, larger air intakes at the side, new slots above the front splitter to allow the car to sit even lower, and updated matrix LED headlights with four selectable daytime running light designs, including a racy checkered flag pattern.

A new flat-bottom and top steering wheel is the most visible change in the cabin which, like the exterior, features some subtle styling tweaks. That’s no criticism as the previous-gen RS3 always impressed in the cabin; its blend of German restraint and sporty hit the right notes.

The front seats are supportive, well bolstered, and look the goods with their hexagonal-patterned quilted stitching.

Audi offers two ‘RS Design’ packages for the cabin with either green or red highlights on the steering wheel, seatbelt edging, contrast stitching, the centre bar on the air vents and seat shoulders. Both are priced at $2150.

Red accents look traditional, but for something different I loved the look of the green contrast which, I’d venture, is almost a must-have for anyone ordering lairy Kyalami Green paint.

The new-look steering wheel, replete with a series of haptic touchpads that operate a variety of features on the infotainment and driver display screens, feels nice and meaty in hand. The haptic pads, though, aren't always as responsive as the former traditional switches and scrollers, sometimes requiring two or more inputs to effect any changes, a mild source of frustration.

Pleasingly, Audi has persisted with physical switches and toggles for adjusting the RS3’s climate settings.

Screen sizes remain unchanged, with infotainment hosted by a 10.1-inch touchscreen, while the digital driver display, or Virtual Cockpit in the world of Audi, measures in at 12.3 inches.

Apple CarPlay and Android Auto are standard, as is satellite navigation and digital radio, while Virtual Cockpit features multiple layouts including a series of RS-specific displays such as the centrally mounted (digital) tachometer that gives off race car vibes. There’s also a new ‘bowling alley’ rev counter that transitions through green, yellow and red before prompting gear shifts via the steering wheel mounted paddle-shifters.

The second row is a bit tight, even behind my driving position – and I'm 173cm tall. Thankfully, big scallops in the front seatbacks add to the available leg and knee room, and anyone ensconced in row two will need them.

A large drivetrain tunnel eats into available foot space for middle-seat passengers, and three adults across row two won’t be swaddled in comfort. There are a couple of USB Type C outlets in row two, joining the two up front, as well as a wireless smartphone charging pad.

Boot space remains unchanged at 282L/1104L (Sportback) and 321L (Sedan). Interestingly, the Sportback scores a powered tailgate for opening and closing, while the Sedan’s bootlid is power opening but manually closing, which seems a bit odd. Both models are equipped with a tyre inflation kit.

Of course, these and a few other foibles are minor, and pale further once the RS3’s red-ringed starter button on the centre console is pressed, eliciting that distinct baritone burble that only a five-cylinder engine can muster.

It’s the beating heart of the RS3 and its unusual configuration – 2.5 litres, inline five-cylinder, turbocharged – is the hero of the story.

It’s carried over from the previous generation, and that means an unchanged 294kW/500Nm and 0–100km/h claim of 3.8 seconds. And yet, this new RS3 is significantly faster than the model that came before it, es evidenced by shaving seven seconds off its own Nordschleife lap time from 2023.

Revisions to its modular driving dynamics controller (mVDC), which combines the software behind the RS3’s torque splitter, electronic stability control and adaptive dampers, have resulted, according to Audi, in significant improvements to the car's agility and stability.

In short, it might be just as quick in a straight line as the older model, but it corners faster and more confidently and with more stability than ever before.

Audi’s history with the unconventional five-cylinder layout dates back almost 50 years to the Audi 100 and the legendary Ur-Quattro. Seeing service in any number of subsequent models, the five-cylinder format has been refined and fettled to arrive at today, and the last remaining five-pot in the brand’s line-up.

And it is, in short, a thing of automotive beauty – a grumbling and gruff explosion of fury and speed worthy of celebration.

But don’t be fooled by its gruff nature, which even at idle makes the hairs on the back of your neck sway in the air.

Drive it at anything resembling daily use, and the RS3 is a comfortable companion. Quick off the mark, but with a relaxed nature that belies its true character, the RS3 excels as a daily driver.

The seven-speed S tronic transmission (Audi speak for dual-clutch automatic) plays its part with aplomb, displaying none of the hesitancy that some dual-clutch transmissions are known for. Instead, shifts are precise and razor-sharp, whether moving away from a set of traffic lights or letting the RS3 off its chain a little on some rural twisties.

And it’s out on the winding stuff, those beguiling ribbons of tarmac that tease with their promise of adventure, that the RS3 reveals its true nature.

Helpfully, Audi Australia chose to launch the updated RS3 with a combined road loop and a thrills-a-minute session at the Haunted Hills circuit in Gippsland, Victoria.

Freed from the restraints of speed limits and civility, the RS3 shows its true colours, accompanied by a snarling five-pot soundtrack that’s hard not to be smitten by.

Yes, it’s fast, but it’s also so very easy to drive quickly. The algorithmic interplay between torque splitting, stability control and quattro all-wheel drive results in an assured and confident ability to wring the RS3’s neck at what feels like the limit, but isn’t.

Sure, the RS3 slingshots out of corners at prodigious speeds, but it’s how it handles those corners that is the real standout – faster than before but without any loss of control. Simply, you can get on the throttle earlier without fear of losing traction.

The revised torque-splitter system plays its hand here, distributing power to the wheel (or wheels) that need more grip. The result is greater cornering speed and an assured experience behind the wheel; one that will flatter most drivers’ abilities.

Seven drive modes – Comfort, Auto, Efficiency, Dynamic and three RS modes; RS Individual and RS Performance and RS Torque Rear – are tailored to alter the characteristics of the RS3 – from front-wheel drive only in Efficiency, to the all-out track-focused RS Performance and the tail-wagging ferocity of RS Torque Rear.

The sum parts equal an undeniably engaging, thrilling even, time behind the wheel when the right situation presents itself.

But more than just a capable performance car, it’s the RS3’s duality that really shines. Turn down the wick and the RS3 stands out equally as a daily commuter, with excellent ride comfort and a docility belying the unashamed performance engineered into its RS DNA.

The new Audi RS3 packages a characterful engine that gruffs and grumbles for its supper in an intoxicating hymn to performance, complemented by a beautifully engineered and exciting driving experience equally at home on the daily commute as it is out on your favourite stretch of winding blacktop. Buyers who can stretch to the now $100K-plus buy-in will be richly rewarded.

Rob Margeit is an award-winning Australian motoring journalist and editor who has been writing about cars and motorsport for over 25 years. A former editor of Australian Auto Action, Rob’s work has also appeared in the Sydney Morning Herald, The Age, Wheels, Motor Magazine, Street Machine and Top Gear Australia. Rob’s current rides include a 1996 Mercedes-Benz E-Class and a 2000 Honda HR-V Sport.

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