The size of this smallest Audi passenger car sold in Australia is just about perfect for anyone living in a major city or its suburbs. There's good interior space for a couple. A back seat that can cope with three children in comfort, or with two adults who receive more legroom than you would expect. Good headroom, as well, by courtesy of the long roofline.

Though it could be argued that the S3 isn't particularly sporty to look at, after all it's a practical wagon first and foremost, it's certainly sporty in its dynamics. It almost goes without saying that this car has Audi's famed quattro all-wheel drive system, the suspension engineers have done an excellent job of making the car a lot more neutral than we anticipated. It turns in promptly, holds on nicely in corners and is happy to change direction suddenly if asked to do so.

Tyre and road noise is generally well muffled, though we did find some rough sealed surfaces that set up quite a din. This isn't unusual in European-sourced vehicles as that sort of road surface is seldom used over there. But it can be an eye-opener (ear-opener!) to those moving to a prestigious Euro marque after spending years in Australian-designed cars that are so much more refined in those circumstances.

Styling changes to separate the S3 from the Audi A3 on which it is based include a bolder radiator grille with chrome plated surrounds and vertical bars. The front under-bumper section has a sleeker look. Red S3 badges on the grille and the tail let others know yours is no run of the mill Audi.

Inside, there's an ‘S3’ insignia on the steering wheel, some red touches in the dash and gearlever trim, as well as semi-sports seats done in a neat two-tone finish in good leather. The side bolsters offer better support than the standard A3 seats, but some may find it less easy getting into and out of the seats.

The engine is a four-cylinder petrol unit producing a very impressive 188 kW from just two litres, albeit with the assistance of a turbocharger. The latter assists the engine in torque output, pushing out 3300 Nm between 2500 to 5000 rpm. So any driver who is going a little harder than average will find the S3 sitting at its peak torque virtually all of the time. This certainly shows up on the road where the little Audi is not only willing to dash off the line, but also has the sort of grunt you would associate with a much larger engine.

When you are in the mood for fuel economy Audi's gear-assistance system suggests upchanges that minimise fuel usage when you're driving the six-speed manual. A small display in the lower-centre area of the instrument panel tells you in which gear the car is travelling and suggests a higher gear when the engine can handle it. The system even gives information on ‘skip’ shifting should the car sense you are driving very gently and changing up a couple of gears will work.

Driven carefully on the open road or a motorway you should be able to get the petrol consumption under seven litres per hundred kilometres, which is pretty impressive economy for a high-performance car. More realistically, routine driving in the suburbs will generally have consumption sitting in the nine to ten litre range. Make full use of the engines potential, after all this is a car that can accelerate from standstill to 100 km/h in under six seconds, and you could be using in excess of 12 litres per hundred kilometres. Still a lot lower than the consumption of a high-performance V8.  

We were really impressed by one feature of the Audi S3 we have road tested for the past week. An offshoot of the main satellite navigation system, it cleverly keeps the driver up to date by giving the car’s direction of travel by showing N, NE, E (North, North East, East, and so on). That is backed up by the name of the street in which the car is travelling. All of this is done in a quiet, subtle manner that doesn’t intrude on the driver’s concentration. Rather, it's sitting waiting in the base of the instrument panel when you need it. This is a handy aid when you know the area already, and a real safety feature when you're in unfamiliar territory, particularly if you're travelling on your own.

Also on the driver assistance list on our test car was the optional $950 self-parking system that can automatically slot the Audi into a kerbside parking spot without the driver touching the steering wheel. We must admit to having doubts about this sort of system. It's scary to think there are drivers out there who can't park a car. What will they be like if they have to do something complicated to stay out of trouble?

At $68,310 the Audi S3 Sportback five-door isn't cheap (the three-door costs $66,403), but you do get a lot of high-performance car with the image provided by a prestigious German maker. Best of all the ability of the S3 to double as a sensible daily driver and a genuine sports machine means you really need only the one car.

AT A GLANCE

MODEL RANGE

Audi S3 2.0-litre three-door hatch: $66,403 (manual)

Audi S3 Sportback 2.0-litre five-door hatch: $68,310 (manual)

FEATURES

ABS Brakes: Standard in both models

Air Conditioning: Standard in both models

Automatic Transmission: Not offered

CD Player: Standard in both models

Central Locking: Standard in both models

Cruise Control: Standard in both models

Dual Front Airbags: Standard in both models

Front Side Airbags: Standard in both models

Stability Control: Standard in both models

Traction Control: Standard in both models

SPECIFICATIONS (Audi S3 Sportback 2.0-litre five-door hatch)

ENGINE:

Capacity: 1.984 litres

Configuration: Four cylinders in line

Head Design: DOHC, four valves per cylinder

Compression Ratio: 9.8:1

Bore/Stroke: 82.5 mm x 92.8 mm

Maximum Power: 188 kW @ 6000 rpm

Maximum Torque: 330 Nm @ 2500-5000 rpm

DRIVELINE:

Driven Wheels: All-Wheel-Drive

Manual Transmission: Six-speed

Automatic Transmission: Not offered

Final Drive Ratio: 3.444:1

DIMENSIONS, WEIGHT AND CAPACITIES:

Length: 4302 mm

Wheelbase: 2578 mm

Width: 1765 mm

Height: 1402 mm

Turning Circle: 10.7 metres

Kerb Mass: 1495 kg

Fuel Tank Capacity: 60 litres

Towing Ability: Not supplied

SUSPENSION AND BRAKES:

Front Suspension: MacPherson struts, lower wishbones, anti-roll bar

Rear Suspension: Four-link, separate spring/shock absorber arrangement, anti-roll bar

Front Brakes: Ventilated disc

Rear Brakes: Ventilated disc

PERFORMANCE:

0-100 km/h Acceleration: 5.8 seconds

FUEL CONSUMPTION:

Type: Petrol 98RON

Combined Cycle (ADR 81/01): 8.5 L/100km

GREEN VEHICLE GUIDE RATINGS:

Greenhouse Rating: 6/10

Air Pollution Rating: 6.5/10

STANDARD WARRANTY: