Together with a new cylinder head there’s a larger turbocharger and modified intercooler that help raise power to 261bhp at 6000rpm and torque to 258lb ft on a plateau between 2500 and 5000rpm

Sporting seriously aggressive looks and brandishing a 261bhp version of Audi’s 2-litre TFSI turbocharged four, the latest incarnation of the S3 quattro has all the right credentials to shake off its previous casting as the ‘nearly man’ of the super-hatch brigade.

Only a drive will tell, of course, but Audi’s recent efforts at making the TT and RS4 dynamically exciting bode well for the three-door hatch.

Given that both the regular A3 range and the TT have V6 engines in their line-ups, it’s perhaps a little odd that the S3 gets stuck with the direct petrol injection turbo four. But the engine is heavily revised for this latest application: together with a new cylinder head there’s a larger turbocharger and modified intercooler that help raise power to 261bhp at 6000rpm and torque to 258lb ft on a plateau between 2500 and 5000rpm. Audi is claiming 0-62mph in 5.7sec and a top speed limited to 155mph.

As well as being 25mm lower than standard and using stiffer springs and dampers, the front suspension also features aluminium wishbones and pivot bearings to reduce weight – another promising sign that Audi is making a big effort to up the ante on the dynamics front. More good news is steering revised for better weighting and feel.

The S3 isn’t on sale in the UK until January 2007 and the expected price is around £27,000.