The 2023 Audi A3 is the German luxury brand’s smallest and most affordable offering, but that doesn’t mean it gives up anything in the way of luxury credentials. The A3 is a spacious, efficient small luxury sedan with rewarding, comfortable driving dynamics, and a cutting-edge, intuitive touch screen system.

The 2023 A3 is one year removed from a 2022 redesign, offering new looks but the same tight, nimble nature as its predecessor. Though it’s offered as a hatchback in other markets, the A3 is only available as a sedan in the North American market. The sedan version provides just 10.9 cubic feet of cargo space, which is small even within the segment.

The A3 is offered in two trims: Premium and Premium Plus. After only just one year, there are some trim and content changes for the 2023 model year. The Premium now comes standard with in-door leatherette with stitching, as well as full LED headlights. The Premium trim also comes equipped with leather upholstery, power-adjustable front seats, heated front seats, three-zone climate control, a panoramic sunroof, a fully digital instrument panel, and a 10.1-inch touch screen infotainment system with wireless Apple CarPlay and wireless Android Auto.

The Premium Plus trim adds a number of driver-assistance features, as well as wireless device charging. A convenience package offered on the Premium Plus adds a fully digital instrument panel (called “Audi Virtual Cockpit”), a Wi-Fi hotspot, navigation, and a Bang & Olufsen 15-speaker premium stereo system. For 2023, the Premium Plus gains fine grain birch wood inlays plus the LED Interior Lighting Plus package.

The Audi A3 is powered by a turbocharged 2.0-liter four-cylinder engine. It makes 201 horsepower and 221 pound-feet of torque. Power is routed through a seven-speed S-Tronic dual-clutch transmission. Buyers can select front-wheel drive or Quattro all-wheel drive. There are more potent turbocharged four-cylinder engines found in the S3 and RS3, both of which are in covered in separate reviews. The powertrain, steering feel, and shift mapping are governed via Audi Drive Select, which has Dynamic (sport), Comfort, Auto, and Individual (custom).

The front-wheel-drive A3 returns fuel economy of 29 mpg city, 38 highway, and 32 combined. The Quattro version returns 28 mpg city, 36 highway, and 31 combined. The A3 requires premium fuel.

The Audi A3 comes standard with several driver-assistance features, including forward-collision warning, automatic emergency braking, and lane departure warning. Features such as blind-spot monitoring, rear cross-traffic alert, lane-keep assist, traffic-sign recognition, a head-up display, and parallel and perpendicular self-parking assist all cost extra, as does adaptive cruise control.

Base MSRP for the 2023 Audi A3 is $34,900 for the Premium trim. The Premium Plus trim starts at $38,500, and a Premium Plus with Quattro all-wheel-drive starts at $40,500. The A3 is backed by a four-year/50,000-mile powertrain warranty.