Audi RS 3 Sportback launch report

In creating the new-generation RS 3 Sportback, Audi has pushed right up against the boundaries of hot hatch design as we know them.

This car is 55kg lighter than its immediate predecessor, yet also more powerful, its multi-award winning 2.5-litre five-cylinder turbo petrol having been developed to the point where it produces a maximum of 362bhp.

Drive goes to all four wheels - in whatever proportion the car deems most suitable for the conditions - via a seven-speed S tronic semi-automatic gearbox. The top speed is limited to 155mph. However, if you really want to, you can choose an option to have the limit raised to 174mph. The 0-62mph sprint can take as little as 4.3 seconds, which is quicker than a Porsche 911 Carrera.

This is all well and good, but Audi has messed up hot hatches before. Not this time. Driving the RS 3 is a delight whether you're going slowly or very, very quickly. There a lot of grip, and the handling balance is as near perfect as makes no difference. Even the ride quality, naturally a bit bumpy thanks to the car's exceptionally low-profile tyres, is a lot better than it has been on previous hot Audis.

The biggest drawback about the car is that the S tronic gearbox can occasionally clunk messily into the next required gear, but so far I've only experienced that while approaching junctions. Under hard acceleration the shifts are very smooth and very fast.

What with all of the above and the usual sense of excellent build quality, the RS 3 Sportback is so good it’s an obvious challenger to the excellent Golf R built by Audi's owner, Volkswagen.

I didn't think this would happen so soon, but the Golf has slipped to second place in my personal hot hatch league table. The Audi is faster, it sounds far more exciting, and there is no trace of the slight roll understeer caused by VW's decision to make the Golf's front suspension softer than it ought to have been.

I've driven the Audi very hard in controlled conditions, but I still haven't found the point where either end finally lets go. I don't intend to look for it unless I'm on an airfield with nothing to crash into for several hundred yards in any direction.

The only advantage the Golf has is that it's a relative bargain. In five-door DSG form (the closest specification in the range to that of the RS 3) it costs £32,890. The starting price for the Audi is £39,995, and one example I drove was stuffed with so many optional extras that your local dealer would charge over £51,000 for it.

No matter how good the car is, we're into the realms of crazy money, but history suggests there are people prepared to pay it. Even without any options at all the RS 3 is dizzyingly expensive, but it's so good I'm almost willing to believe it's worth the 40 grand Audi is charging for it.