[1] The Haldex Traction coupling adjusts the bias of torque distribution from the front to rear axle as grip requirements change - most of the time it operates as a front-wheel drive.

The S3 was facelifted in 2000, where it was given one-piece headlights/indicator units, different front wings, rear lights clusters, and some minor upgrades to interior trim.

Standard features include xenon HID headlamps with high pressure washers and auto levellers, front fog lamps, 17" "Avus" alloy wheels with 225/45R17 tyres, electrically adjustable Recaro leather seats, climate control, alarm and Electronic Stability Programme (ESP) with traction control (ASR).

Options include a Bose sound system, boot/trunk or in-dash mounted 6 disc CD changer, metallic paint, 18 inch 9-spoke RSTT wheels, glass sunroof, centre arm rest, privacy glass (B-pillar backwards), auto dipping rear view mirror, parking assist, luggage net, heated front seats, cruise control, aluminium door mirror casings and part leather/alcantara (blue/silver/yellow) combination seat coverings.

The second generation Audi S3 - Typ 8P, is powered by a modified and uprated Volkswagen Group-sourced 2.0L Turbocharged FSI petrol engine, with a maximum output of 195 kW (265 PS; 261 bhp).

The engine features uprated high performance pistons, revised boost/fuel mapping, increased turbocharger size (KKK K04) and larger intercooler.

Other cars of similar power are a good deal cheaper; the Volkswagen Golf Mk5 R32 sports 184 kW (250 PS; 247 bhp), with 0–100 km/h (0–62 mph) achieved in 6.2 seconds.

Reasons range from pricing and competition with the Volkswagen Golf R32, and/or stealing sales from the new Audi TT and due to cost effectiveness in the North American market.

Audi has announced a 2.0T quattro model for the North/South American market due out in 2009/2010 to coincide with the A3 body upgrade.

In April 2008, Audi announced a five-door S3 variant based on the A3 Sportback (Typ 8PA), with the same engine and transmission as the existing 8P S3.