Audi S3 vs BMW 2 Series

What's the difference?

There are plenty of historical instances where a particular model within a broader range manages to hit the absolute sweet spot even though it’s not the fastest or most expensive variant. Porsche’s GTS specification across various models is a great example of this.

And at the risk of being proven wrong when the all-new RS3 comes along later this year, this car, the S3, might just pull off that feat.

Yes, the new RS3 will be more powerful and will offer even more grip and sporty flavour, but it will also be more expensive. And we defy anybody to drive the S3 and say that it lacks dynamism in any single area.

It’s also a magnificently balanced car with the right amount of attention paid to every aspect of its trim and performance. That, in essence, is where that `balanced’ label originates and even though it’s felt most in the actual driving experience, it permeates throughout the entire vehicle.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

Perhaps the most striking thing about the styling of the new Audi is just how similar it looks to the old model. Okay, this is not a new thing with Audi which has made a point of not throwing a handsome design into the dumpster in pursuit of new for new’s sake.

As such, the exterior lines are taut and typically Audi clean and, with the latest LED headlights and a refinement of the Audi trapezoidal grille, the look is fresh and crisp without being a novelty act.

Inside, the virtual dash display and large, relatively flat centre console almost amount to anti-styling. Or it would if the rest of the deal wasn’t so sharply angled towards a philosophy of less is more.

Again, this is classic modern-era Audi where the game is to make a complex layout look as simple as possible. The face-level air vents also seem to have borrowed a little Lamborghini (part of the Audi family) DNA.

I particularly like the new shift-by-wire gear selector which is a nifty looking switch but works just as intuitively as a conventional shift lever. New tech meets old muscle memory, I’m calling it.

It's worth mentioning (again) just how good Audi’s customisable dashboard display is. With sharp, clear graphics and the ability for the driver to prioritise the information on display at the time, the S3’s display is still about the best in the business.

Overall, ergonomics have always been a long-suit of this brand and there’s been a clear intention to follow that tradition this time around.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

While SUV owners are often quick to tell you that they bought their car for its interior space, the truth is sometimes different. And without the huge wheel-wells and suspension towers of a high-riding SUV, the conventional hatch or sedan often has an advantage.

Certainly, there’s no lack of room in the S3 and the hatchback version has a wide hatch opening to make loading easier. The sedan, however, is a full 150mm longer than the hatch and that extra is all behind the rear seat.

So the boot is actually very useable with a capacity of 325 litres. Audi claims the same 325 litres for the Sportback, but that figure jumps to 1145 litres with the rear seat folded flat.

The rear seat in either variant is handily split 40/20/40 and there are storage nets on the back of each front seat, luggage nets in the cargo area and 12-volt outlets in both the centre-rear and luggage compartment. Even floor mats are standard.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.

From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.

Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.

You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.

From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.

Many of those items are available with a $6700 Enhancement pack on the lower grades.

These more-or-less line up with rival premium small sedans.

Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!

Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.

Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.

Here’s where a lot of the extra currency demanded for the S3 goes. Forget the 1.5-litre engine in the base-model A3, and instead move to the two-litre four-cylinder as seen in the A4 40 TFSI. Then, add extra turbo-boost (up to 1.8 bar thanks to an efficient intercooler) different variable valve timing protocols, and a direct fuel-injection system with a specific calibration and the potential to create injector pressures of up to 350 bar, and you have the S3’s powerplant.

Maximum power is 228kW at anywhere from 5450 to 6500rpm, and maximum torque of 400Nm produced in a broad range between 2000 and 5450rpm.

Transmission is a seven-speed dual-clutch unit driving through all four wheels as per Audi’s Quattro mantra, although it’s important to note this version of Quattro is the simpler, arguably less pure, on-demand system where the car behaves as a front-drive platform until the all-wheel-drive system is required to step in.

That said, with 228kW under its wheels, that’s a fair bit of the time. And compared with previous systems, this one takes more notice of driver inputs and wheel-speed to be less reactive and more active.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

Audi quotes an official combined cycle fuel consumption figure of 7.4L/100km for the A3 Sportback and 7.3 litres for the sedan.

That difference is a bit of a mystery given the sedan is heavier (by just five kilograms) until you consider that the combined figure includes freeway running, at which point the sedan’s extra 150mm of length and different rear diffuser may be the aerodynamic deal-breaker.

The Sportback emits 170 grams of CO2 per kilometre (166 for the sedan) and with the 55-litre tank fitted, both variants should have a range of around 750km between fill-ups.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

Some cars take a few minutes at the wheel before they start to get chatty. Not so the S3. From the moment you grab the lovely leather tiller, haul it into gear and give the perky little turbo-motor a squeeze on the throttle, the Audi is making all the right noises and giving clear, precise feedback on its every move.

Sometimes, cars with lots of tyre, lots of all-wheel drive grip and the sort of sharp steering fitted here, can start to feed back so many responses that it becomes difficult to know which one to respond to.

Not the S3, which seems tuned to a keener driver’s priorities (as it should be, of course). As a result, the steering feedback is distinct from what the rest of the front end is doing and everything else going on is clear, quantifiable and designed to improve the experience.

That even extends to the soundtrack which, Audi told us does not use any electronics to improve it beyond amplifying the engine-bay harmonics which use the windscreen and scuttle as their 'speaker.'

Combined with the active exhaust system, this car honestly sounds like a five-cylinder engine (I opened the bonnet to count the spark plugs to make sure it wasn’t. It isn’t.)

If you’ve ever driven a five-cylinder Audi or a V10-powered R8 (two in-line fives, really) the tune will be a familiar one. Lovely, and – again - such amazing attention to detail.

The 2.0-litre engine runs fairly high boost levels, but that doesn’t seem to have affected the way it storms off the mark. Neither does the dual-clutch transmission contribute any delay, provided you haven’t managed to stand on the brake and throttle at the same time (as many left-foot brakers might).

At that point, the driveline goes into sulk mode and will force you to wait a heartbeat or two before full power is restored. This can be an issue when trying to dart across a busy intersection or merge into a traffic flow.

It’s not a new thing to Audis, but remains an annoyance to those of us who equate having two pedals with having two feet.

The driver-selectable drive modes fitted to the S3 are interesting inasmuch as they actually make a meaningful difference to the way the car operates. They alter the transmission shift points, the throttle sensitivity, steering weight and damper settings.

'Comfort' mode will be the default for most owners, and while 'Dynamic' does sharpen up the dampers ever-so-slightly beyond an acceptable day-to-day level of firmness, it also adds weight to the steering feedback.

Frankly, I don’t think it needs it and simply adding resistance feels like a token gesture. And since the steering has a (non-negotiable) variable rate in the first place, bigger inputs equal a bigger proportionate change of direction anyway.

The damping control is now the more sophisticated magnetic-hydraulic type where hydraulic pressure varies the valving rather than the simpler, previous system of energising an electro-magnet to alter the viscosity of the damping fluid.

This more finite control system has allowed more 'bandwidth' as Audi puts it, between Comfort and Dynamic damper settings.

While the auto mode is almost prescient, it’s not actually pre-emptive but rather takes into account suspension deflection, wheel-speed and driver inputs to come up with a combination of settings to make the most of the situation.

And if you really want to fiddle, you can choose 'Individual' and create an overall setting that combines bits of Comfort and Dynamic with a smattering of 'Efficiency' thrown in.

Toggle down to Dynamic and throw the S3 at some bends and it soon emerges as a pretty gripped-up piece of equipment. The front-drive bias is not really noticeable, but then neither is the transition where the computer begins to engage the rear multi-plate clutch to turn the rear axle into an active participant.

There’s certainly no lack of grip at any stage of a typical corner, and even the odd unexpected damp patch poses no awkward questions. Perhaps the biggest grumble would be the tyre roar at highway speeds, but that’s often the price of performance rubber.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.

For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.

No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.

Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.

Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.

Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.

Audi has finally had to cave in and extend its warranty to match its competition. So, any new Audi sold after January 1 this year moves up to a five-year/unlimited kilometre factory warranty; a big step up from the previous three years of cover.

S3 buyers can also opt for Audi’s five-year service plan which costs $2580. Servicing is set down for every 15,000km or 12 months.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.