Audi S3 vs BMW M135: which German brand builds the hottest hatchback?

Four-wheel-drive hot hatchbacks have been a byword for exploitable performance ever since the first examples hit the road in the late eighties as a by-product of rallying. With total traction at their disposal in all weather conditions, the very best can rival supercars for cross-country ability, despite delivering it at a fraction of the cost.

A latecomer to the party was BMW, which only added four-wheel drive to its fastest 1 Series hatch in 2012, but just as an option in foreign markets. UK buyers had to wait until the all-new Mk3 car arrived in 2019.  Now there’s been a major facelift, with a different look, a slight power decrease and  the loss of an ‘i’ to denote the petrol variants.

Audi was one of rallying’s pioneers of four-wheel drive, and until recently nearly every model in its line-up was offered with a quattro transmission. These days it’s reserved mainly for performance models and high-end SUVs, and in the A3 line-up it’s just the rapid S3 and RS 3 versions that feature it.

The A3 was also subject to a facelift earlier this year, but has either brand done anything to spoil the fun of firing a powerful four-wheel-drive hot hatch along a twisty road?

BMW M135

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While BMW is famous for its rear-wheel-drive M division cars, four-wheel drive is now much more common across the line-up than it used to be. Despite most xDrive-equipped M models still having a bias towards the back axle, the BMW M135 (now shorn of its ‘i’ suffix to differentiate it from BMW’s electric offerings) has a character that’s markedly different from the rest of the range. That’s not to say it’s no fun, though, because it’s still one of the most engaging hot hatchbacks around.

There are enough revisions to the updated car for BMW to give it a new model code – changing from F40 to F70 – and the tweaks are largely positive. The looks are less awkward, although it can feel a little anonymous in some specs. Enhancements to the chassis and powertrain help the M135 to battle it out with the best models in this class.

Tester's notes

With the launch of the new BMW 1 Series, the brand has ditched the ‘i’ suffix that has adorned the bootlids of its petrol cars for generations. It’s something that probably should’ve happened once all of its cars were fuel injected, but now that the company uses ‘i’ to signify its electric models, BMW has only just decided to consign it to history.

We’ll get used to it, I’m sure, but what makes my eye twitch more is the different point sizes used for the M135 badge. It’s a good car in itself, it doesn’t need a nod back to the M1 supercar in its name.

Audi S3

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The Audi S3 has been part of the four-ringed line-up for 25 years, and while the original was a three-door hatchback that eventually spawned five-door, saloon  and even convertible variants, all versions have kept the same format of a powerful turbocharged four-cylinder engine connected to a quattro all-wheel drive powertrain. The current car is the most powerful ever, and it comes in saloon or five-door Sportback guises.

The fourth-generation S3 that arrived in 2020 has been subject to the same update as the rest of the A3 range. There’s a new nose, more intricate LED lighting and a revised interior that offer improvements that make the car more appealing than before, while its performance has also been enhanced.

Tester's notes

Ever since the original S3 arrived in 1999, it’s offered a tempting mix of performance and premium quality in a compact package that has been snapped up by buyers. It’s also a good way to show how the class has evolved.

The original three-door model had 207bhp and 270Nm of torque from a 1.8-litre turbo engine and a manual gearbox. Fast-forward to today, and the car is a five-door (or saloon), there’s a seven-speed dual-clutch auto instead of a manual, and it has an extra 121bhp and 150Nm on tap. It’s also heavier, by around 100kg.

Head-to-head

Performance

In a straight line, the S3’s higher power output means it outsprints the M135 from 0-62mph, with a time of 4.7 seconds being 0.2 seconds faster than the BMW’s.

Both cars feel responsive, with the BMW’s new twin-clutch gearbox giving you a distinct thump in the back each time a cog is changed in Sport mode. They each feature launch control that will deliver consistent, fuss-free starts.

Tech highlights
Both makers go large with advanced exterior lighting. The BMW has a bright LED system that can be upgraded to adaptive matrix units featuring blue reflectors in the housings for £1,550 extra.

Audi has become a master of LED tech, and the S3 has different daytime running light signatures that can be configured by the driver. It features intricate light patterns when locked and unlocked, too.

Price and running costs 
While the BMW has a lower starting price, it doesn’t come with as much kit as the Audi – wireless phone charging, a head-up display and adaptive cruise control are all included in pricey packs.

Insurance and tax costs are steep for both cars, but the M135 was more efficient on test. However, the Audi claws back some advantage because it has a larger fuel tank and can go further between fills.

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Practicality
There isn’t much between these two in terms of room. The S3 has a slightly wider cabin to boost shoulder space across the back, but this is offset by a relative shortage of legroom, due to the large sports seats up front.

The BMW has more boot space, with 380 litres on offer, compared with 325 litres in the Audi. But the S3 has greater versatility, because 40:20:40 split-folding is standard – it’s optional on the M135.

On the road
Four-wheel-drive grip helps these cars get their power to the road, but when you push hard you’ll find they’re set up very differently.

Surprisingly, it’s the BMW that behaves more like a front-wheel-drive car at the limit, with strong front-end grip. The Audi has more of a rear bias, with power sent towards the back wheels on the exit of corners. The M135 has adaptive dampers as standard that help boost comfort.

Ownership
A three-year, unlimited-mileage warranty is standard on both cars, while the two makers offer optional extensions at extra cost.

BMW has different levels of cover that can last up to seven years or 100,000 miles and can be paid for monthly or in one go. Audi has more straightforward one or two-year extensions that can be paid for outright, or as part of any finance agreement that has been taken out.

Verdict

First place: BMW M135

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Both of these models prove that if you’re a driving enthusiast that can only have one car on your drive, then a powerful, four-wheel- drive hot hatchback is the answer to all your needs. They’re quick, responsive and still deliver everyday usability.

And it’s the M135 that offers more for your money; standard-fit adaptive dampers help it to be a more rounded choice. There’s plenty of power to put a smile on your face, but it’s  the lively chassis that really appeals, with involving handling and plenty of grip.

Runner-up: Audi S3

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Second place here is no slight on the S3; it’s still a great option if you’re in the market for a performance hatchback. It packs a punch and offers grip by the bucketload, but overall it’s not quite as engaging to drive as the M135. Factor in poorer fuel economy and a firmer ride at all speeds, and it doesn’t quite have  the all-round appeal of the BMW.

And then there’s the price. Yes, you get a lot of kit for your cash, but you have to spend even more to add the adaptive dampers that would deliver an even better driving experience.

Prices and specs