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The Audi A3 is a practical, compact hatchback, but it feels upscale, like a scaled down A4. Sales of the A3 sales are modest here in the U.S., but Audi has sold 1.5 million A3s worldwide. It’s earned accolades for its high levels of technology and sporty driving dynamics.

The A3 2.0T is powered by a turbocharged 2.0-liter four-cylinder driving the front wheels, while the A3 3.2 Quattro carries a 3.2-liter six-cylinder engine that drives all four wheels.

The A3 is an example of the exquisite sensibilities in design and use of materials that distinguishes the contemporary Audi. It will take more than just high fuel prices for U.S. buyers to look for their sporty utility in smaller vehicles, but we like the A3 for its combination of open-road dynamism, long-haul friendliness, around-town usefulness and fuel economy.

Inside the car, too, the designers fine-tuned the atmosphere of sporty elegance. Aluminum-look elements on the air vents, light switches and center console accentuate the premium character of the Audi A3. The switches and controls beneath the audio system have been given a new, modern look. The instruments have black dials and red needles to reinforce the impression of precision and advanced technology, and a shift indicator displays the recommended gear in any given circumstances in the driver information system.

The A3’s trunk is the roomiest in its class, at 370 to 1,100 liters (13.06 to 38.83 cubic ft.) on the five-door A3. On quattro versions, the trunk floor is a few centimeters higher, to accommodate the special rear axle. Audi can also supply the options of a panoramic sunroof for the versatile five-door A3.

The range of transmissions has been extended and become even more appealing. The 2.0 TFSI engine is supplied as standard with six-speed manual transmission, and the 3.2 is available exclusively with the S tronic dual-clutch transmission, now also available for all engine versions. The high-tech S tronic changes gears with extreme speed and smoothness. The driver can set it to operate in a fully automatic mode or change gears manually – either at the selector lever or with the standard shift paddles on the leather sport steering wheel.

The S tronic on the six-cylinder engine and the 2.0 TFSI has six speeds.  Its clutches are dry-running – an innovative approach. This means that they do not need a separate oil supply, further adding to their already impressive efficiency.

New for the five-door A3 is the 2.0 TFSI quattro, available exclusively with S tronic transmission. In its latest technical form, the central hydraulic multi-plate clutch responds even faster when the engine’s power needs to be redistributed between the front and rear wheels. This increases stability, traction and driving pleasure for the driver.

The standard-fit dynamic suspension, too, provides safety, dynamic handling and comfort all rolled into one. The captivating precision with which the five-door A3 handles and its well-balanced character owe a great deal to elaborate concepts such as the four-link rear suspension and the efficient electromechanical power steering. There is optional sport suspension that supports the body 15 millimeters (0.59 in) lower.