2025 Audi S3 Review: Subcompact, But Not Substandard

Spend enough time in crossovers and SUVs, and it’s easy to forget just how lovely it can be to drive a car. It doesn’t matter how good the SUV is, and I’m not talking supercar or even a big-dollar and bigger horsepower sports sedan; I’m talking about sedans with a hint of enthusiast intention. Cars like this 2025 Audi S3 are light, nimble, and just fun to spend time in.

The latest version of Audi’s smallest model in the U.S. launched in 2020. An update for this year has brought the middle-hot version of the compact sedan a new nose and a much nicer interior. It also got more power and more torque thanks to updates to the 2.0L engine.

I first tried the new S3 last year near its corporate home in Munich. This time, I didn’t get to run it to top speed on a stretch of German Autobahn. Instead, I got to spend a week with it at home, getting to know the 2025 Audi S3 in the slower pace of our real world. A place where, like it does on the Autobahn, its dynamics still shine almost as brightly as the Python Yellow paint.

In short: For 2025, Audi fixed the biggest problem with the S3: the interior. While it’s not perfect, it’s definitely better. And all of the other improvements are just a little more icing on an already quite tasty cake.

2025 Audi S3 Review

In the pantheon of Audi performance, this is the middle grade of the Audi A3 sedan. There is the standard A3 sitting below it and the bonkers five-cylinder RS3 above it. If the A3 lineup is a shelf of Takis, the A3 is Chicken Fajita. This S3 is Fuego, and the RS3 is Blue Heat.

Audi tweaked the car for 2025, and since the biggest update was to the interior, I’ll start with that revised cabin. The S3 comes standard with sports seats that look the part of a sports sedan. They’re also plenty supportive, but at the same time, they’re not cramped. They won’t squash you like a Golf R might, or like the late Ford Focus ST.

From that new seat, you look out at a new dashboard with some higher-grade materials covering it. The design is the same, but the finishes are different.

It’s not an A8, or even an A6. But still, in this price point, it’s nice enough. There’s still too much piano black trim, a detail that loves to scratch if you even so much as look at it, but the new controls, like the new gear selector, are a big improvement.

This Little Audi Is Huge Inside

This is a massive cabin, at least by the standards of subcompact sedans. If you’re expecting a budget Audi to be a tiny experience, you’re in for a surprise. Loads of headroom and legroom in the front, and even the rear seats are bigger than you’d expect. Big enough for adults to sit behind adults, at least, even if everyone’s a 6-footer.

The trunk, on the other hand, is quite small. It’ll hold just over 10 cubic feet of stuff, which is probably the trade-off for the big and airy cabin. I’ll take that trade, but not everyone will approve.

Tech-Heavy Dashboard

Audi has upgraded the in-cabin tech for 2025. The screen measures 10.1 inches and has a new update to Audi’s multimedia interface software. It’s quick and crisp, and it has a smooth-flowing map that includes Google satellite imagery. There’s an app store if you want to add more.

This car also offers Audi’s Virtual Cockpit digital dash. The big dash screen is massively customizable, letting you change around gauges, add and remove information, and even set it up as a full-screen view of the map.

Wireless charging is standard this year. So is Audi’s neat phone box that helps boost signal strength.

More Powerful Engine for 2025 Audi S3

By turning up the fuel pressures and making changes to the car’s software, the 2025 Audi S3 can handle more boost than before. That pushes horsepower up by 22 to 329 horsepower total, and torque climbs by 15 pound-feet, to hit 310.

The torque curve stays table flat from 2,100 to 5,500 rpm, so it pulls strongly at a touch of the gas at almost any speed. A new trick from Audi tweaks the throttle plate without adding fuel to keep the turbo spinning. Since the turbo is always spinning, boost lag is virtually eliminated.

Audi’s neat turbo trick is not something you’ll ever notice unless you go back-to-back with a car that doesn’t have it. But that’s the point; it just makes the car better.

Transmission Escaped the Upgrades: It Shouldn’t Have

Audi hasn’t made any changes to the seven-speed dual-clutch automatic, and it probably should have. The transmission is clunky at low speeds, as well as when you suddenly hit the gas. By suddenly, I mean situations like proceeding at a yield or exiting a traffic circle.

The lack of smoothness was frustrating, but only because the rest of the experience was so solid. No, there’s no manual available anymore.

The 2025 Audi S3 has bigger brakes than the standard version of the car. Rotors, pads, and calipers are all upgraded. They deliver amazing stopping power on the Autobahn, and they are just as nice in city traffic and on back roads. The Audi stops smoothly and quickly, over and over again.

The Fun Really Starts in Dynamic Plus

Hit your favorite back road and you’ll discover one of the best upgrades for 2025. Audi has added its sophisticated Torque Splitter rear differential, a feature previously exclusive to the RS model. It uses clutches to transfer torque between the rear tires, rerouting the force to give you optimal handling.

Click the 2025 Audi S3 into Dynamic Plus mode and mash the gas mid-corner, and you can feel the car’s power shift from inside to outside as it works to keep understeer in check.

The S3 has variable assist steering that does a great job of delivering a satisfying level of heft when you turn into a fun bend. It’s still clearly nose-heavy if you’re doing things you probably shouldn’t be doing, but if you’re just out for a fun drive, the combination of steering and rear diff is glorious.

It’s stable but still fun. Eager to change direction, but planted when it does. After the rolling and heaving of crossovers, it’s lovely.

On the Autobahn, I found road noise in the S3 to be quite reasonable. Back home and at much lower speeds, I found road and wind noise intrusive. Both cars seemed to have the same tires, so I’m going to put the changes down to the differences in asphalt between Germany and North America.

The bright yellow paint and checkered flag running lights do make me feel a little boy-racer in this Audi. Drop the yellow for one of Audi’s other lovely shades, and the compact sedan feels a little more grown-up.

You’re also going to want to pick the 19-inch wheels. Not because they improve the ride (they won’t) or the handling (they might), but because the standard 18s look like an off-brand winter wheel design.

Premium Fuel but a Mid-Grade Price

Though this Audi is small and has a 2.0L engine, it’s not exactly frugal on fuel. It gets an official estimate of 23 city and 31 highway, and my driving saw closer to the lower figure than the higher. You’re also going to need premium gas.

Premium gas makes sense, because this is a premium car (yes, I know that’s not how it works, it’s a metaphor). The 2025 Audi S3 starts from $48,700. Equipped like my test car in Prestige trim with the 19s, yellow paint, and the S sport package with adjustable shocks, the total is $59,540 plus destination.

2025 Audi S3 Review: Conclusion

Audi’s only real competitor for this car is BMW’s M245i. But that BMW isn’t a rear-drive platform like a typical BMW, so it doesn’t have the natural advantage most BMWs bring to the table. Audi has been doing this segment longer and, frankly, it does it better.

It’s powerful, it’s playful, and now it feels more like it deserves its price tag. The 2025 Audi S3 is the antidote to the subcompact crossover. More importantly, it’s a car that should make you smile every time you get behind the wheel. Exactly what you’re paying for.