Jaguar XE vs Audi RS3

What's the difference?

The Jaguar XE is a dynamic, prestige mid-sized premium sedan, for those who are more concerned with engaging driving than cargo space and rear legroom.

The sweet spot in the range is the entry R-Dynamic SE.  Buy that one and option the handling pack, and you'll still come in under the costs of the HSE.

Bang for you buck is the XE’s strong point and you won’t find more horsepower at this price in rivals such as BMW 3 Series, Benz’s C-Class or the Audi A4.

If conventionally powered cars really are on the endangered list, it’s vehicles like the Audi RS3 that will remind us what we’ve lost. There’s so much fun to be had in this car, that you really need to take it to a track to tap into it safely and responsibly. And there’s the rub.

While there’s no doubting the RS3’s potential, neither is there any doubt that the driveline absolutely dominates the experience. In fact, we reckon the S3 with its more modest (but still ample) performance and friendlier nature is probably the smarter car for the everyday. It’s also cheaper by about $20,000 and while it lacks the aggressive looks, it’s still a charming car. Perhaps all the more charming for its easier-going nature and balance of abilities.

So why buy the RS3? Because it’s the one that will keep you entertained for longer if you’re a serious enthusiast driver. But if you don’t plan to use the car for track days, there’s a strong argument that the RS3 is way more car than you’ll ever need. Of course, that sentiment never stopped performance-car lovers, did it?

This freshen up of the XE sees a sharper, wider look for the mid-sized sedan with sleeker headlights and tail-lights, plus redesigned front and rear bumpers.

From front-on the XE looks low, broad and planted, a black mesh grille and the way it’s flanked by much larger air intakes is tough, and the signature Jaguar long bonnet curving down towards it looks magnificent.

The rear of the car has benefited greatly, too. Gone are those overly simple tail-lights, replaced by more refined units with a strong resemblance to the F-Type's.

How much smaller is the XE than its big sister the XF? Well, here are the dimensions. The XE is a mid-sized car at 4678mm long (276mm shorter than the XF), 1416mm tall (41mm shorter in height) and 13mm narrower at 2075mm wide (including the mirrors).

The Mercedes-Benz C-Class is almost the same length at 4686mm, while the BMW 3 Series is 31mm longer.

The XE’s cabin has been updated, too. There’s the new steering wheel which has a more minimalist and cleaner design than the previous tiller, the rotary gear shifter has been replaced with an upright trigger-grip device (another functional improvement), and there’s the 12.3-inch digital instrument cluster.

New materials and trims are used throughout the interior. Both grades have premium carpet mats, and aluminium trim around the centre console.

In the SE four types of two-tone leather upholstery can be specified as non-cost options, while another four which are $1170 options in the base grade are available free in the HSE.

The standard cabins of both grades feel luxurious and premium.

While the overall shape of the RS3 suggests evolution rather than revolution, the RS3 treatment has led to a much sportier look. We still reckon the sedan is the pick of the two body styles, mainly because it looks a bit more aggressive. Certainly, though, an aggressive look is not something either version backs away from, and those deep, wide blacked-out honeycomb grilles front and rear give the thing lots of presence.

So too do the blistered fenders, allowing for the extra track width that gives the RS3 its unique footprint. The front track itself is 30mm wider, but the wider fenders also gave Audi the chance to do some creative aero-management. Unlike, say, the Toyota Supra, for instance, with its faux vents up each side, the RS3’s lower-front vents and aero-slits behind each front fender are fully functional, directing air into the engine bay and away from the brakes respectively.

Another really neat function is the LED daytime running lights’ one-act play when you unlock the doors. As the car unlocks its doors, the LEDs spell out `R’, `S’ and `3’in sequence. Blink and you’ll miss it, but it’s a lovely touch that some manufacturers will never understand.

Mid-sized sedans have a tough job on their hands when it comes to practicality – they need to be small enough to park and pilot in the city but big enough to carry at least four adults comfortably along with their luggage.

I’m 191cm tall and while space up front for me is plentiful, space behind my diving position is limited. Headroom in the second row is getting tight, too.

The small rear doors also made entry and exit a bit of a challenge for me.

Boot space is also not the best in the class at 410 litres. I’m being kind. See, the Mercedes-Benz C-Class has a cargo capacity of 434 litres, while the BMW 3 Series and Audi A4 have 480 litres volumes.

Up front you’ll find a USB and a 12-volt outlet, but if you want the wireless charger for your iPhone or Android device you’ll need to option it for $180.

Like the rest of the Audi A-series range, the RS3 is available in two body styles, a five-door hatchback and a four-door sedan. The five-door hatchback layout is the most practical of the two RS3 layouts, but both feature plenty of front-seat space and a rear seat that folds 40:20:40. 

Paddle shifters are mounted on the steering wheel rather than the column, so they move with the wheel. That can make it difficult to select the correct paddle in a hurry with lots of lock applied.

The Drive modes are operated by a switch low down on the centre-stack that is clearly designed for left-hand-drive cars. It’s too far from the driver and needs to be cycled through in one direction, rather than being able to select the next mode or the previous one.

Beyond that, the interior is a lesson to other car-makers on how to get an interior right. There’s a quality look and feel with the possible exception of the plastic trim below the passenger-side air-vents which looks and feels a bit cheap. There are plenty of cup-holders and cubbies around the cabin with two USB plugs in the front and two in the rear (for charging).

The RS3 loses some space compared to the regular A3 because of the performance hardware. Where the hatch can take 282 litres with all seats in place (1104L with second row stowed), the sedan can swallow 321 litres.

What you’re buying here is not a car in a different size or luxury category compared with its S3 and A3 stablemates, but a car with a much broader performance envelope. So it’s no surprise to learn that a lot of the extra money goes into that type of hardware.

So rather than the class-standard four-cylinder engine, the RS3 gets a five-cylinder engine measuring 2.5 litres and enough performance to challenge many a supercar of just a handful of years ago. That philosophy also requires bigger brakes, firmer suspension and a more complex, track-oriented version of the electronic rear differential that can turn the car into a drifter or a race-track hero. Wheels and tyres are competition-spec, too.

In turn, those changes have forced other alterations such as the wider fenders and more intricate body kit, the former to physically fit the tyres, the latter to control air-flow for high-speed stability and for thermal management.

Other RS3 additions to what was an already well-equipped car in the S3, include lots of Audi’s trademark honeycomb styling panels around the car, RS3 puddle lighting, LED headlights and daytime running lights, carbon and aluminium interior inlays, RS sports seats with four-way lumbar support and a massage function.

There are two USB ports, wireless phone charging, another pair of USB ports in the rear, Bang and Olufsen stereo, head-up display, tinted glass, heated, folding exterior mirrors and Nappa leather throughout the interior. There’s also Android Auto, a wireless version of Apple CarPlay and digital radio.

The RS3 uses Audi’s celebrated virtual cockpit display with a choice of display layouts for the driver as well as a 10.1-inch touchscreen to control all the connectivity and infotainment settings. It uses the latest version of Audi’s MMI interface.

Like the other A3-based Audis, there’s a price premium for the sedan body over the hatchback, making the five-door RS3 a $91,391 purchase against the sedan at $93,891. Compared with the S3 CarsGuide tested earlier this year, that represents a pretty big jump from that car’s $70,700 (hatch) and $73,200 (sedan). That said, there’s a fair bit more going on in the RS3 in every department, but you get the sense that this comparison will be one nearly every potential buyer will make.

Like most Audis, there’s a range of optional packages, starting in the RS3’s case with the Carbon Package which brings carbon-matte inlays to the interior, side skirts, exterior mirrors and a carbon roof spoiler for the Sportback and a carbon roof-lip spoiler for the sedan. That costs $7400 on the hatch and $6300 on the sedan.

The Matte Aluminium Package is next with a few trim pieces finished in an aluminium material for $2000 extra and there’s also a panoramic sunroof on offer for $2600.

The RS Design Package gets you an Alcantara-covered steering wheel, seat belts in green or red as well as coloured elements to the seat shoulders, floor mats and the air-vent highlights. Yours for $2150.

The most serious option is the RS Dynamic Package which brings carbon-ceramic brakes with a choice of caliper colour as well as an electronic reflash to bring the top speed of the RS3 to 290km/h from its standard (limited) 250km/h. That adds another $13,000 to the price.

One thing that’s nice to see is that Audi has made even the pearl and metallic colours a no-cost option on the RS3. Other manufacturers should take note.

There’s one engine for both the R-Dynamic SE and R-Dynamic HSE – a 2.0-litre turbo-petrol four cylinder making 221kW/400Nm. Drive is sent to the rear wheels via an eight-speed automatic transmission.

The four-cylinder felt strong and all that torque arrives low in the rev range (1500rpm) for good off-the-line acceleration. The transmission is also excellent, shifting smoothly and decisively.

It’s a shame the V6 isn’t offered anymore, but 221kW is a lot more power than you’ll get for this money in a BMW 3 Series or Mercedes-Benz C-Class

While the five-cylinder engine is more or less a carry-over from the previous RS3 model, the end result is still a pretty stunning one. With 2.5 litres of capacity, the turbocharged unit accounts for 294kW of power (the same as the previous model) and 500Nm of torque (up 20Nm).

The transmission is a seven-speed dual-clutch unit that is quite a familiar sight around Audi by now, and the all-wheel-drive system uses a centre differential with an electronic clutch-pack on each rear axle to give the car a Drift mode (although Audi insists you don’t refer to it in those terms) as well as torque vectoring with the ability to shift 100 per cent of rear-axle torque to the either wheel to maximise grip.

There’s now also an RS-specific exhaust system with an active flap to increase or tame exhaust noise according to which drive model is selected. The drive modes themselves stretch form Comfort to Auto to Dynamic, altering shift points, gear-shift aggression, throttle response and suspension firmness as well as that exhaust flap.

Brakes are enormous 375mm front rotors with six-piston calipers, that hardware forcing the fitment of a 19-inch alloy wheel (specific to the RS3) for brake clearance.

Jaguar says that the XE will use 6.9L/100km of premium unleaded petrol when driven on a combination of open and urban roads.

After my time with it the trip computer was reporting an average of 8.7L/100km. Not bad considering the test drive would have been thirsty work for the four-cylinder turbo engine.

Audi’s official combined fuel consumption figure for this car is 8.3 litres per 100km. Obviously, start using all that power and torque and that figure will grow significantly. Based on that, the car emits 190 grams of CO2 per kilometre, and with the 55-litre tank (which looks a bit small on paper) the range should still be around 600km between fill-ups.

The only catch with that is the high-tech nature of the engine means it requires the more expensive, Premium ULP at the bowser.

The launch took place on twisty country roads snaking away from the coast in Northern NSW, but I was only a few corners in before it became darn clear the R-Dynamic HSE was talented dynamically. Impressively so.

The HSE I tested was fitted with the $2090 'Dynamic Handling Pack', which adds bigger front brakes (350mm), adaptive dampers and configurable settings for throttle, transmission, chassis and steering.

Steering which felt a tad heavy in town became the XE's secret weapon as the roads curled through the hills. The confidence the steering, delivering great feedback and accuracy, gives the driver can’t be overstated.

This combined with the XE’s excellent handling and powerful four-cylinder engine makes it a clear dynamic standout among its competitors.

A comfortable ride even, on potholed roads, but flat handling regardless of how hard it was pushed through corners amazed me.

Sure, optional adaptive dampers were fitted to our test car, but considering the work out they were getting without skipping a beat, their response was impressive.

Following this I dropped into the seat of the red R-Dynamic SE you can see in the images. While this wasn’t fitted with the handling package the HSE had, the only real difference I could feel was in the comfort – the adaptive dampers were able to produce a more composed and cushioned ride.

Handling, however, felt sharp, sure and the steering gave me the same confidence I experienced in the HSE.

First impressions are that this is a typical Audi in the way it fits together beautifully and is made from quality materials. The ergonomics – particularly the virtual cockpit - are spot on and it even smells like an Audi. Noise is well suppressed, the controls feel quality and the front seats are comfy. But from there, the overarching view is dominated by that powerhouse of an engine.

This isn’t just a quick car, it’s actually brutal in the way it builds boost almost immediately and then hurls the car down the road. To be honest, it’s almost too much, and the way the RS3 reels in the horizon will leave some drivers ignoring other sensory inputs in order to keep up with the car. Brutality breeds brutality, too, and the subsequent steering and braking inputs required when the throttle is pinned will not always be the considered, gentle type; they’ll often be gut reactions.

Thankfully, the rest of the driveline and platform has the smarts to make all this work. There’s awesome grip from the Quattro all-wheel-drive system and the car stays flat and steers in a fast, neutral but pin-sharp way. The dual-clutch transmission feels perfect for the engine, too, with ultra-quick shifts that become more aggressive as you ramp up the drive modes. Ride quality is good but we reckon there’s less bandwidth in the various drive mode settings than exists in the same system fitted to the S3 model we drove a few months ago. While the latter offered a broad range of suspension firmness, the RS3 seems to be a bit of a prisoner of its own performance, with Audi leaning all the drive modes towards a firmer setting in the name of body control.

That’s supported by Audi’s decision to offer us some race-tack laps in the RS3 to safely explore its high-end tendencies. At this point, the car emerges as a proper track-day proposition, all that power and control blending into a car that loves being thrown around a circuit. Perhaps the front seats could do with a little more side bolstering at track-cornering speeds, but overall, it’s clear that the RS3’s brief does, indeed, include a degree of race-track use.

The RS3 hasn’t been crash-tested locally, but the A3 on which it is substantially based has been and scored five stars back in 2020. The caveat there is that that result related to the lighter front-wheel-drive version of the car, not the RS3’s all-wheel-drive variant.

The RS3 is well equipped from a safety perspective with seven air-bags including a head-level curtain airbag that protects occupants in both the front and rear seats. There’s also Audi’s Pre-Safe which closes the windows and sunroof and pre-tensions the seat-belts if the car thinks a shunt is imminent. In the RS3’s case, that program has been extended to include autonomous emergency braking which works at speeds up to 250km/h and can identify pedestrians and cyclists up to 85km/h.

There’s also a tyre-pressure monitoring system, lane-change warning, rear cross-traffic warning, lane departure warning with active intervention of the steering, parking cameras front and rear, park-assist, and a 360-degree camera system with various points of view.

The Jaguar XE is covered by a three-year, 100,000km warranty. Servicing is condition-based (your XE will let you know when it needs a check-up) and there’s a five-year/130,000km service plan which costs $1750.

Again a low score here, but that’s because of the short warranty compared to the five-year coverage which has become an industry expectation and while there is a service plan there’s no service-by-service price guide.

Service intervals for the RS3 are every 12 months or 15,000km, whichever comes first. Audi offers capped-price servicing for the RS3 at $3580 which covers servicing costs for the first five years.

The car is covered by Audi’s five-year/unlimited kilometre warranty. The vehicle is also protected against body-rust perforation for 12 years.