A more powerful version of the Audi A3 was introduced in 1999 under the nameplate of Audi S3.
The S3 shared its platform with the TT, as well as with the VW Golf, Seat Leon, and Skoda Octavia.

The facelifted model came to life in 2001 and featured both exterior design updates, as well as improved performance.

Aesthetically, the most important changes were the new turn indicators that were now integrated in the headlights, revised front wings and rear light clusters. Inside, the interior trim was slightly upgraded with a digital clock and different audio packages.

The 1.8-liter turbocharged gasoline engine was upgraded with a variable valve timing technology, the new S3 now benefiting from a 15 hp boost.

The standard features available with the S3 included xenon HID headlamps, headlights washers, fog lamps, 17-inch alloy wheels, Recaro leather seats, climate control, electronic traction control, and an electronic stability program.

Stand-alone options included a premium Bose audio system, a trunk-mounted 6-disc CD changer, metallic paint, bigger 18-inch alloys, a glass sunroof, parking assist, heated front seats, cruise control, and part-leather combinations of seat upholstery.

Although marketed as “Quattro”, the S3 was actually equipped with a Haldex system that was designed to adjust the traction depending on the grip level.

The Audi S3 was not available for purchase on the North American market.