Audi's upcoming plug-in hybrid electric vehicle (PHEV) for the Australian market is likely to be the A3, which will be available in both hatchback and sedan formats.

The 2025 A3 has been launched in Australia with petrol-only variants, namely the 35 TFSI and S3. Audi has indicated that it is assessing the feasibility of expanding its offerings to include a PHEV variant and other engine options.

According to a statement from an Audi Australia spokesperson:
"We are currently evaluating the A3 PHEV and other available engine variants for Australia. For the launch, we will introduce the 35 TFSI, which includes a notable increase in standard equipment compared to its predecessor."

If introduced, the A3 40 TFSI e PHEV would be the only premium small plug-in hybrid passenger car in Australia, following the discontinuation of the Mercedes-Benz A250e hatch in 2023.

The A3 PHEV is based on the same platform as the Cupra Leon hatchback and wagon and the Formentor SUV. These vehicles are expected to be available in Australia in 2025 with facelifted versions, incorporating a similar 1.5-litre turbocharged petrol engine combined with a more powerful electric motor.

The implementation of the New Vehicle Efficiency Standard (NVES) may also create an opportunity for the Volkswagen Golf GTE to enter the Australian market, equipped with the same powertrain as the Cupra versions.

The A3 40 TFSI e PHEV utilises a front-wheel-drive system powered by a 1.4-litre turbocharged petrol engine producing 110 kW and 250 Nm.

Paired with an electric motor, the system delivers a combined output of 150 kW and 350 Nm. The vehicle features a 25.7 kWh lithium-ion battery pack, which is approximately 30% larger than its predecessor, enabling an electric-only range of 141 km under the European WLTP testing standards.

Audi currently offers PHEV variants of the Q8 large SUV and the Q5 mid-size SUV in Australia. Future models, such as the next-generation A5 medium car, Q3 small SUV, and Q5, are expected to include PHEV variants, along with the A3.

The anticipated expansion of Audi's PHEV range aligns with a broader trend in the automotive industry towards increasing availability of plug-in hybrid vehicles in Australia.

However, the removal of the Federal Government's fringe benefits tax (FBT) exemption for PHEVs from 1st April 2025 may influence the adoption of such vehicles.

Other PHEV models confirmed for release in Australia in 2025 include the Ford Ranger, BYD Shark 6, GWM Cannon Alpha, GWM Haval H6 GT, Jaecoo J7, and MG HS.