There is a lot of competition for the RS3 in the compact hatchback market, such as the BMW 135i, the Ford Focus RS (which offers 300 horsepower), Volkswagen Golf R, and of course the Subaru Impreza WRX STI. However the Audi RS3 is said to be able to deliver 340 horsepower, outperforming all others in the class. Based on its larger brother the Audi A3 Sportback, the 5-door RS will have bigger fender flares, wider body, new engine, larger air intake vents, racing-style seats, dual-tipped single exhaust and a smaller steering wheel for a ‘racing’ feel.

The new RS3 will have the same engine of the 2011 TT-RS, which is a 2.5 liter, single turn engine specially adapted for the RS3. It is rated to supply 320 horsepower, along with 332 lb-ft of torque. Estimates have the RS3 being able to do 0-60 in around 4.5 seconds with a top speed of around 155 mph. With the TT-RS Audi also made it possible to deactivate the limiter, allowing the car to achieve around 174 mph, but it’s not yet known if they plan to do this too with the RS3.

The Quattro all-wheel-drive system will come as standard and buyers will be able to make a choice between a 6-speed manual transmission and an S Tronic dual-clutch gearbox. Both supply a 40:60 front/rear torque split.

It’s interesting that there are still a great many details that have not been announced. The RS3 will definitely make an appearance at the Paris Motor Show in October, in a close-to-production trim, but many of the exterior features will still possibly be refined. No details have been released about the car’s suspension to date, but it likely to be set up to be stiffer and more performance oriented than the A3.

The Audi RS3 will be introduced in a very limited supply at first, with only 2,700 cars being available. At first the car will only be available in the European market, and it is not yet known whether the car will be available to the American market. Audi’s new RS3 might tempt car enthusiasts to look into getting money from many means, and never seeing such autos in car donations facilities. It will be very interesting to see how much this powerful car will retail for, and with the right price point it could upset a few other manufacturers.