The 2025 Audi S3 is a Sophisticated Performance Daily With RS Derived Hardware

[Author: Zach Miller]

The fourth generation of Audi’s A3 lineup just went through a mid-cycle refresh for the 2025 model year, which means the higher-performance S3 and RS 3 models will also receive some modest upgrades to their design, technology, and hardware. Audi of America invited us out to Oceanside, California, for some hands-on experience with the refreshed 2025 Audi S3. Here’s everything you need to know about Audi’s latest entry into its long-running compact performance segment.

With 22 additional horsepower compared to the outgoing 2024 model, the revised Audi S3 now produces 328 hp from its turbocharged 2.0-liter four-cylinder engine, paired exclusively with quattro AWD and a seven-speed S Tronic dual-clutch transmission. Torque remains unchanged at 295 lb-ft, but Audi has enhanced the S3’s power band in several ways—such as preloading the turbocharger for more immediate torque lower in the rev range and delivering 50% faster shifts with the revised S Tronic unit.

However, the most exciting change comes in the form of new RS-derived hardware.

The rear torque-splitting mechanical differential that first appeared in the 2022 RS 3 has now trickled down to the S3, providing fully variable torque distribution between the rear wheels. Power is split 50/50 between the front and rear wheels, but the torque splitter allows for a more rear-biased driving experience, especially when used in the new Dynamic Plus drive mode. The S3 can shift up to 100% of the power to either rear wheel to mitigate understeer, facilitate a drift, or help rotate the car back to center in the event of wheel spin.

The S3 driving experience delivers the same smooth and effortless speed we’ve come to expect from S models, blending comfort with elevated performance. Power off the line won’t throw you back into your seat, and the turbo still takes a moment to spool up, but once you climb higher in the rev range, the benefits of turbo preloading become apparent—along with some joyful turbo noises.

The twisty, more remote second half of our drive is where the S3 really shined. Navigating a long series of sweeping turns with elevation changes and uneven pavement allowed the torque-splitting differential to showcase its capability. Not only does the S3’s chassis inspire plenty of confidence, but we found ourselves exiting turns earlier and applying more throttle, thanks to the dynamic torque distribution. Throughout my drive in Dynamic Plus mode, the S3 felt stable and handled its ~3500 lb weight with grace, never encountering a level of understeer that the rear diff couldn’t manage.

Visually, the 2025 Audi S3 sharpens its presence with a more aggressive front fascia, featuring a wider, flatter singleframe grille and larger air intakes that give it a more assertive stance. Subtle tweaks to the LED lighting signatures front and rear add a fresh, modern edge, while new S wheel designs and an available Black Optic package deliver the kind of understated menace Audi does so well.

Inside, the S3 remains a masterclass in clean, driver-focused design. The latest iteration of Audi’s Virtual Cockpit is as crisp and configurable as ever, while the cabin materials, though slightly simplified compared to past generations, maintain an air of premium build quality. Admittedly, the primary downside is the increased use of piano black plastic in the center console and dash panels, which we would prefer to see less of. Beyond being difficult to keep clean, the piano black segments somewhat cheapen what is otherwise a thoughtful and premium-feeling interior.

The textured steering wheel, body-hugging sport seats, and contrast stitching add just enough performance flair without veering into boy-racer territory. The steering wheel also features Audi’s older design, as opposed to the updated style found on newer Audis like the A5, which include the controversial flat Audi emblem in the center instead of the three-dimensional brushed metal rings seen on the S3. There’s also a healthy balance of hard buttons on the steering wheel and center console, making it easy to navigate your media inputs, climate controls, and driver assistance features.

The additional ambient lighting featured within the door card designs is also a nice new touch. With the 2025 S3 being a mid-cycle update, the whole package is an evolution rather than a revolution, but it’s one that keeps the S3 looking fresh and sophisticated.

Audi has worked to simplify their vehicle trims into three straightforward names: Premium, Premium Plus, and Prestige. Two additional packages become standard as you move up through the trims. The Premium Plus comes with the Convenience Package as standard, which adds features like radar adaptive cruise control, a wireless charging pad, and benefits such as a memory driver’s seat. Step up to the Prestige trim with the standard Technology Package, and you’ll get Audi’s famous Virtual Cockpit, among other software upgrades. Honestly, the Virtual Cockpit alone makes it worth the upgrade.

While the base Premium trim comes well-equipped, Audi claims most S3 buyers opt for the Premium Plus or Prestige models, which makes sense given that radar cruise and other ADAS features are considered standard fare for most luxury car shoppers these days.

The S3 we drove was a top-trim Prestige model in Ascari Blue, fully loaded with the additional Black Optic package and S Sport package. The latter includes new adaptive dampers and red brake calipers for a sporty touch. The base S3 Premium starts at $48,700, but the as-tested price for our Prestige model was $60,840, representing a $22,000 premium over the entry price of a standard Audi A3. Despite this, the 2025 S3’s starting price still beats out other compact performance sedans from rival brands, such as the BMW M235i Gran Coupe ($49,500) and the Mercedes-AMG CLA35 ($52,900), all of which feature AWD and 2.0-liter turbo four-cylinder engines but deliver slightly less power at 312 hp and 302 hp, respectively.

Later in the day, we also experienced a quick drive in a Python Yellow S3 Prestige, a vibrant metallic yellow that was previously exclusive to the Audi RS 3. It’s great to see Audi expanding the factory color options to bring some additional RS excitement to the S3 lineup.

If the outgoing Audi S3 was a capable but somewhat reserved performer, the 2025 refresh adds just the right amount of spice to keep things interesting. The RS-derived torque splitter injects a newfound agility into Audi’s compact sport sedan, making it more engaging without sacrificing its refined daily manners. It may not be a full-fat RS 3, but with sharper handling, quicker shifts, and just enough turbo theatrics, the S3 has never felt more alive. If you enjoyed previous S3 generations, the 2025 S3 will deliver even more of the formula you love.

Photo Credit: All images by Audi Media USA and Zach Miller, unless otherwise specified.