Audi has grown into a fully-fledged premium brand, which is not only reflected in the quality of its cars, but also its pricelist. The new A3 is pitched against BMW's 1-series rather than its cousin, the VW Golf, so you'd be forgiven for expecting a product to match, and beat, Wolfsburg's benchmark hatch.
Styling tweaks in 2008 included more muscular wings and a more aggressive headlight and bumper design, giving the A3 a face similar to that of the A4 and A5. The cabin offers standard Audi design fare, but that's certainly not a criticism. There are high-quality materials including aluminium flourishes, and the instruments and controls are thoughtfully laid out. Basic spec is a little stingy, though, and you'll have to plump for the SE variant before you'll get front fogs, an information system and multi-function steering wheel as standard, and upgrade again to the 'Sport' model to benefit from half-leather seats. Adding gear from the options list isn't cheap, either.
The engine line-up has been refreshed, too. The most frugal is the excellent 1.6 TDI, which returns 68.9mpg and emits just 109g/km of CO2 - not too shabby when reconciled with its 0-60mph time of around 11sec. There's also a beefier 2.0-litre common-rail TDI, available in 140bhp or 170bhp form, a basic 1.6-litre petrol engine, and a host of TFSI petrol units which are 1.2, 1.4, 1.8 or 2.0 litres in capacity. The range-topping S3 is amongst the quickest hatches on the market thanks to its 265bhp, and produces headline figures of 0-62mph in 5.7sec and an electronically limited maximum of 155mph. Performance enthusiasts now also benefit from a choice of a 3- or 5-door S3, making it a more practical proposition than before.
There's also a drop-top A3, which takes just 9sec to stow its electric canvas roof, and, usefully, this operation can be executed at up to 18mph. The convertible is available with an extensive range of petrol and diesel engines, including the 2.0-litre petrol unit.
On the move, the A3 is capable rather than outright sporty, and handles motorway slogs as well as it does rural jaunts. Soundproofing in the cabin is excellent, and the ride is supple enough to dispatch sharper bumps while retaining enough stiffness for reasonably rapid progress. The steering is a tad numb, but feels solid and composed.
Back to costs, though, which turn out to be a weakness. The fleet-footed S3 doesn't perform any better than the far-cheaper Golf GTI, and the rest of the range falls short on dynamics against the Ford Focus, VW Golf and BMW 1-series. On the other hand, there are plenty of top-notch engines to choose from, and considering its sharp styling and interior quality, the A3 begins to justify its price.