The 2025 Audi S3 is hitting the Canadian market as a major update to a model that originally debuted in 2020. The changes are far more than just skin deep – there are improvements in power, agility, refinement, and style. They all thrust the S3 into the limelight as potentially one of the last internal combustion engine sports sedans before electrification fully takes hold. Audi Canada flew us to Munich, Germany, to test these updates, where we found a harmonious fusion of twisty rural backroads paired with limitless speed on the autobahn.
What’s New
For starters, the 2025 S3’s 2.0 L turbocharged four-cylinder engine receives a power increase and now makes 328 horsepower and 310 lb-ft of torque, up from 306 and 295, respectively. Audi says that the 0 to 100 km/h sprint takes place in only 4.7 seconds, which is a 0.1-second improvement over last year’s model. The seven-speed S tronic dual-clutch automatic transmission has been tweaked to reduce shift time, the front brakes are larger, and the variable-ratio steering is now more responsive.
Visually, the refreshed S3 receives more angular front and rear fascias. There’s more metallic trim all around, and L-shaped accents replace honeycombs. The headlights feature a new daytime running light (DRL) design, and drivers can select between four different DRL signatures from within the car’s menu system.
Quattro AWD: Torque Splitter
While Audi’s quattro all-wheel drive system has always been a high water mark, for 2025, the S3 adds a torque splitter function to the rear axle. Depending on the driving situation, engine torque can now be diverted between the left and right side rear wheels. More power sent to the outside rear wheel improves turning under throttle, letting the car essentially pivot on its axis much more easily. Conversely, when the back end of the S3 starts to step out (oversteer), power sent to the inside rear wheel helps to keep the Audi on the straight and narrow. A new Dynamic Plus drive mode offers increased torque to the rear axle and a more aggressive calibration on the torque splitter, engine, and suspension.
Improved Handling, Compact Size
Testing the updated S3 in its natural habitat was a real treat. On the narrow roads that meandered along the farm fields outside of Munich, a mix of tight corners and elevation changes gave the new torque splitter a real workout. While the overall handling balance was neutral with neither oversteer nor understeer, setting the drive mode to Dynamic Plus allowed for noticeably improved agility at lower speeds. Compared to a rear-wheel drive car, the rear axle’s torque vectoring combined with the all-wheel drive makes spirited driving much more precise, allowing the Audi to exit corners like a slingshot.
The steering was well-weighted and precise, and while ride quality was relatively good in each drive mode, the stiffest setting in Dynamic Plus may be felt more evidently on pothole-ridden Canadian city roads. As before, the S3’s compact size helps with maneuverability in urban driving; it’s easy to squeeze in and out of underground parking lots, and visibility out of the cabin is good in all directions.
Engine and Transmission
On the autobahn, the absence of speed limits allowed for legal testing of high-speed stability and performance that would likely land some serious jail time at home. Top speed is limited to 250 km/h, and the S3 was able to get to that point in a hurry. Cruising north of 200 km/h was smooth and serene, with high stability and low wind noise, and the lane-keeping driver safety assist system can operate at up to 210 km/h. Brake response was good, with a firm pedal that inspired confidence at all speeds.
The 2.0 L turbo engine makes peak torque between 2,100 and 5,500 rpm, which is very usable in day-to-day driving at more Canadian-like speeds. The engine puts out a satisfying mean growl as it goes through the rev range, the S tronic dual-clutch transmission shifts extremely quickly, and there is practically zero gap in power delivery between the S3’s seven gears. Paddle shifting manually is responsive and engaging, which is often not the case in more conventional automatic transmissions. Canadian fuel economy numbers are not yet available.
On the Inside
Like the exterior, the 2025 S3 receives cosmetic interior updates to keep things fresh and upscale. While the basic layout remains the same, accent materials have been meaningfully revised. The shifter, air vents, and interior lighting receive an updated look. There are elegant new fabric panels on the dashboard and doors, the latter being backlit in a striking pattern. A series of metal bezels match the updates on the outside, and a thick flat-bottom steering wheel and sporty seats with integrated headrests round out the interior look.
The S3 features a 10.1-inch touchscreen for infotainment, Sonos premium audio, and wireless phone charging. Virtual Cockpit – Audi’s name for a digital gauge cluster – is now standard equipment. There’s dual-zone climate control, memory settings for the power driver’s seat, and a head-up display. With seating for five, space for passengers and cargo is about right for a compact sedan; it can accommodate four adults without issue, but taller folks may find legroom to be at a premium. Audi’s in-house app store allows the installation of useful applications, such as Spotify, for music streaming.
Versus the Competition
The closest competitors to the S3 are the Mercedes-AMG CLA 35 4MATIC and the Acura Integra Type S. The Audi makes more power than the Mercedes, and both Germans offer a torque-vectoring rear axle over the front-drive Acura. The Integra is the only one with a manual transmission, although the S3 will have an overall performance advantage with its dual-clutch automatic gearbox. Between the three, the Audi offers the ideal balance of all-wheel drive performance, comfort, and driving engagement.
Final Thoughts
The 2025 Audi S3 gets a series of proper updates that help push its performance envelope to higher levels. The improvements mean that the S3 performs closer to the old RS3 (sadly no longer available in Canada) without sacrificing comfort and refinement. For most people, it’s a perfect amount of German-engineered sports sedan. It has plenty of power, style, a fancy all-wheel drive system, and is practical enough for daily use. Pricing on our shores is not yet available, but expect it to start in the high-$50,000 range, topping out around $70,000.
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