2026 Audi A3 Sedan review

The sedan body style hasn't really been in fashion Down Under for a while.

With the exception of the Tesla Model 3 and Toyota Camry , sales of the traditional three-box sedans have basically fallen off a cliff and, as a result, most car companies have moved away from offering them in Australia, particularly in the smaller segments.

Audi is not one of those automakers. The current A3 range maintains a sedan equivalent to the five-door Sportback hatch in every model grade locally – including high-performance S3 and RS3 versions – following a great showing from the previous-generation model.

Here on test we have the 2026 Audi A3 Sedan TFSI quattro 150kW S line (deep breath), the most recent addition to the local lineup. It bridges the gap between the base TFSI 110kW mild-hybrid and the Volkswagen Golf R -powered 245kW S3 quattro.

It pairs a detuned version of the German auto giant's 2.0-litre 'EA888' turbo-petrol engine from said S3 and Golf R with quattro all-wheel drive and a slick-shifting seven-speed S tronic dual-clutch auto. While it looks cutesy and demure, it packs GTI levels of performance underneath.

So while this little Audi sedan stacks up as a potential sleeper on paper, does it justify its existence in the local lineup when so many Australians are likely to jump straight to the S3?

The A3 Sedan generally commands a $3000 price premium over the equivalent A3 Sportback, including the high-performance S3 and RS3 variants.

On test here we have the TFSI quattro 150kW S line, which starts from $65,800 plus on-road costs. Our test vehicle also included the $1990 Premium plus package, while the Mythos black metallic paint seen here costs another $1350. Other options as tested included the Black exterior styling package ($1200), a panoramic sunroof ($2000), and privacy glass ($650).

So that's $72,990 as-tested for this compact premium sedan, before on-road costs, which is nudging $80,000 on the road. That's no small amount for a small car, but it's still cheaper than the base price of the Mercedes-Benz A250 Special Edition (from $74,600), while the BMW 220 Gran Coupe starts around the same price as the Audi (from $64,800) and requires similar box-ticking to get equivalent spec.

If you really want all-wheel drive and turbocharged performance in a smaller sedan and you aren't fussed about the badge, the Subaru WRX (from $48,890) offers a range of variants with more power as well as the option of a six-speed manual transmission if you prefer to shift your own gears.

Perhaps the A3 TFSI quattro's biggest natural rival comes from within the Audi family, given the 245kW S3 Sedan starts from $81,800 before on-roads.

To see how the Audi A3 lines up against the competition, check out our comparison tool

There's not much to distinguish the cabin this mid-spec A3 from the base one, particularly when they both have optional packages specified.

Even I struggled to find differences at the beginning, and my partner recently bought a new A3 Sportback TFSI 110kW S line. But, there are a couple of little (or not so little) things that distinguish the 150kW from the 110kW.