The fourth-generation Audi A3 doesn’t just look smarter, it works smarter too, thanks to a mild hybrid powertrain.

The Audi A3 has always been the classy hatchback, offering up refined looks and a polished driving experience that set it apart from the others in the C-segment. It also was the first of the ‘Big Three’ German brands to put a model into this part of the market. Now the A3 enters its fourth generation with a car that doesn’t just look sharper than ever; it also comes packed with Audi’s latest technology. 

Technically, this A3 isn’t entirely new, as it’s built using the same MQB platform that underpinned the previous model and a whole load of other cars in the Volkswagen Group lineup like the Volkswagen Golf, Skoda Octavia and Seat Leon to name but a few. An evolution of the platform has enabled Audi to add more features such as higher levels of electrification for the various versions of the A3 in addition to improving the suspension setup and track width to improve how the car handles. 

While every panel on the car is new even at a glance, it’s easy to tell that it’s an A3. That signature Audi grille is more substantial with some models featuring electrically controlled slats behind that will close over to improve the car’s aerodynamics. The face of the A3 also varies depending on the equipment grade you choose, with sportier S line versions gaining more open lower bumper sections and the appearance of three slots above the main grille as a nod to the original Quattro model. 

Another distinguishing element of the A3’s design are the new LED headlights, which also display different daytime running light signatures in relation to the specification grade. A small panel in the lower part of each headlight contains 15 LED panels that light up to show different patterns. Some might see this as a bit of a gimmick, and I guess it is, but Audi has developed quite a reputation for creating snazzy light animations in its larger models like the RS 6 and Q8, so why should the A3 be any different? 

The rest of the car looks smart, with more curves than creases and lots of contours on the bodywork that catches the light in different ways. This effect can be quite eye-catching in the right colour. New bodywork makes the A3 a few millimetres longer, however, the length between the wheels is unchanged as is the amount of boot space, which is 380 litres. 

But what will impress most people is the interior of the A3. The design and quality of it are every bit as good as other models that Audi will charge you twice as much money for, and you won’t feel short-changed by what you get. For starters, all models get a 10.1-inch touchscreen display for the MIB-3 infotainment system. It’s very intuitive to use, is crisp and sharp and, according to Audi, has ten times the processing power of the last generation’s system. You can connect and mirror your smartphone with Android Auto or Apple Carplay, and there’s the option of wireless charging as well as USB ports. 

The driver-centric design puts a 10.25-inch digital instrument cluster in front of you that is configurable to show more mapping if you’re using the built-in sat nav or a more traditional looking set of instruments. It’s upgradable to a larger 12.3-inch unit as well as adding a head-up display. There's more room between the front seats due to a stubby drive selector for the now shift-by-wire automatic transmission. For those in the back there is a reasonably good amount of space; best-suited to two rather than three in the rear though as there’s still a transmission tunnel running along the centre of the floor. 

But what’s the A3 like to drive? In a word: smooth. That’s partly down to the improved 1.5-litre turbocharged petrol engine that in this case is paired with a 48-volt mild hybrid system. That means a second small battery lies beneath the front passenger seat and is connected to an uprated starter system on the engine. That four-cylinder engine already uses Audi’s fuel-saving tech that turns off half the engine when the car is cruising along. The mild hybrid system goes one step further and fully switches off the ignition in the engine for up to 40 seconds when you take your foot off the accelerator. Power from that additional battery keeps all the car’s systems powered until the point when the engine seamlessly restarts. Even though the battery doesn’t electrically power the vehicle as a conventional hybrid would, it’s a smart system, and Audi says it can save reasonable amounts of fuel for little extra weight penalty. 

In city traffic the start-stop works much more quietly when restarting the engine, doing so with less vibration too. The only gripe I had with how it operates was the feeling from the brake pedal when driving as there is little to no feeling in the first part of the pedal movement before a stronger braking force applies. It doesn’t lend itself to a light touch that you’d expect to need. I quizzed the Audi engineers about this, and they explained that it’s only like this in the mild hybrid versions as the belt alternator starter system recuperates energy into the battery first before the physical brakes are applied. 

That aside, the now wider wheel tracks in tandem with the multilink rear suspension setup that features on all A3s with 148bhp or more, come together to deliver some lovely road holding. There is plenty of stability as you drive through faster bends, and the steering setup is spot on. Having the optional adaptive dampers adds an extra layer of comfort, though they’re not an essential item. A variety of other elements like acoustic glass in the windscreen and better sound insulation in the floor all contribute to making this feel every bit the premium hatchback. Its eight-speed automatic transmission slips between gears in a short, sharp manner and the 1.5-litre engine provides plenty of pep at the lower end of the rev range so that you aren’t always having to go looking for it. 

This latest Audi A3 should have its nearest rivals, the BMW 1 Series and Mercedes-Benz A-Class feeling worried. The sharp looks, generous tech and overall refinement when driving proves that it is every bit the genuine premium hatchback. 

Model: Audi A3 35 TFSI MHEV Sport

Price: starts at €24,900 

Engine: 1.5-litre turbocharged four-cylinder petrol

Power: 148bhp

Torque: 250Nm

0-62mph: 8.4 seconds

Max speed: 139mph

MPG: TBC

CO2: TBC

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