As a nation we've always punched above our weight and enjoyed supporting the underdog. Maybe that's why we love hot hatches so much, Paddy Hopkirk's epic Monte Carlo Rally victory in a humble Mini Cooper S sealing a long lasting love affair with small, fast, no frills, front-driven hatches. We buy more of the things than other European country, and whilst the format has evolved considerably from those early days that hot-hatch allure is still utterly irresistible.
But ever-increasing power has led to a serious problem - traction. No matter how sophisticated the suspension, differentials or engine mapping become, laying down all the power through the front wheels limits the potential performance. And that's why all the top rally cars - from the 80s Audi Quattro onwards - have favoured four-wheel drive. A fact not lost on the legions of British performance buyers who worshipped the saloon-based Subaru Imprezas and Mitsubishi Evo Lancers of the 90s and noughties.
But in 1999 Audi broke the mould once again. Sensing the potential demand for a premium - rather than a merely functional - four-wheel drive hot hatchback that would satisfy the growing aspirational classes it launched its luxurious Audi S3. 14 years later and with a new one just launched it's still the benchmark in the sector. And until relatively recently the only serious competition has come from within Volkswagen Group's own stable - in the form of the Mk4 and Mk5Golf R32s and the Mk6 Golf R.
Family tree
For a time though the Audi S3 had it all its own way. That seminal 1.8-litre three-door S3 saw little serious premium competition until Volkswagen decided to launch its first six-cylinder R32 in 2002. Based on the Mk4 Golf its 3.2-litre lump delivered 243hp (against the S3's 225) and sounded better too. The battle for premium hot-hatch supremacy within the Volkswagen family had well and truly begun. And Volkswagen followed up with another even smoother 253hp Mk5-based R32 Golf in 2005.
Audi responded with a meatier second-generation late 2006 265hp 2.0-litre S3. Boasting a raft of improvements and a heavily revised four-wheel drive system 62mph was now dispatched in just 5.7 seconds (the contemporary DSG-equipped R32 took 6.2 seconds) and economy bettered 30mpg - something the R32 simply couldn't get close to. Impreza-rivalling cross-country performance delivered with the ultimate in classy comfort. Balance of power restored.
A late 2008 face-lift, with 33.2mpg economy and a 201g/km CO2 figure) distanced the 2009 S3 even further from its brasher VW sibling. For an extra £1,450 you could now buy a six-speed S Tronic version (yes - it's just a DSG box), yet it delivered even better economy. Headline power remained at 265hp with the popular three-door S3 priced at £28,920 OTR, and the frumpier five-door Sportback at £29,420.
But the hot-hatch devotees at VW hadn't been sleeping. Finally accepting the obvious efficiency advantages offered by a turbo'd powerplant it hit back hard with the late-2009 Golf R. Employing the Mk5 Golf GTi's EA113 engine (rather than the Mk6 GTi's EA888 unit) the Golf R's headline 270hp output just pipped the Audi S3. And for the first time a bespoke R-badged Golf matched its Audi S3 rival in terms of economy and CO2 emissions too - albeit with a £30,090 price tag.
Of course Audi has grabbed the initiative back once again with its latest £31,980 300hp 40mpg 2013 S3, but with a new Golf R pencilled in for release in the next year or two the Audi may not rule the family roost for long.
Brothers in arms
These two hatchbacks share much common DNA, in spite of their separate development and production. The outgoing S3 was manufactured at Audi's Ingolstadt plant in Bavaria, whilst all three and five-door VW Golf Rs were assembled in Wolfsburg. But with very similar engines, transmissions, performance figures and specifications most of the key differences are only skin deep. And as a pair these two sit at the pinnacle of the UK luxury hot-hatch market.
In-house cousins like the SEAT Leon Cupra - impressive though they may be - are far from premium products, whilst the huge-selling Golf GTI doesn't possess quite the same kudos.
Audi's S3 in particular has virtually defined the genre and leads the sector selling 12,168 UK examples in Mk2 guise alone. Perversely, given Audi's brand status, the more expensive Volkswagen Golf R is actually a more exclusive product, and that's reflected in its lower 1,088 UK sales figure. But that's still impressive return for a £30,000-plus Golf that's only been around for a few years, even if competition from BMW's 1 Series and the AMG A-Class will soon make things tougher.
Family feud
There's another fraternal fight here and that's between the Golf GTI and this R but it's clear the latter punches harder and fights in a different league . It possesses all of the GTI's unbridled thirst for corners, chassis control and youthful sense of excitement but adds even greater urgency. And unlike its lustier but lazier V6-powered forbears the power delivery in this latest R is - when you want it - truly intense. The addition of four-wheel drive doesn't in any way disrupt the car's fluidity, whilst the upgrades to brakes, suspension, spec and styling make for a genuinely special drive. Demanding PHers will want their Golf R to come with a manual 'box and optional ACC dampers though.
And then you'll have a package that will deliver even greater entertainment and satisfaction than the outgoing Audi S3. By comparison the Audi's steering doesn't feel quite as sharp, the chassis not quite as chuckable, and the Quattro drive feels more FWD biased - although overall performance is near-identical. If you really push the Audi hard though a glimpse of R-like excitement does reveals itself. But most of the time, it remains hidden.
However, when it comes to specs it's the Audi that holds the upper hand. If the original Golf R owner fancied matching an Audi S3's standard spec with a few options like sat nav and leather then they'd be forced to fork out well over 30 grand - and that's simply too much for a Golf. And buying and owning costs are where the Audi holds the edge. If you haven't got £20,000-plus the S3 is the only option (unless you opt for a Golf GTI) and with experienced tuners happy to take your S3 to 310bhp for as little as £500 you cannot go wrong. Stretch to £25,000 and you've got a tougher choice. The Audi is pure premium, but less exclusive, not as hard-edged and lacks visual drama. Its residuals will also be marginally lower than the Golf R's. And then you come to the top end of the price range where an option-packed £30,000 nearly-new Golf R looks the dog's danglies. Or at least it did before Audi announced its all-new sub-£32,000 300hp S3.
One thing's for sure though, with a new Golf R all but confirmed for early 2014 this family feud isn't going away anytime soon.
VW GOLF R (three-door)
Engine: 1,984cc 4-cyl turbo
Power (hp): 270@6,000rpm
Torque (lb ft): 258@2,500rpm
Transmission: 6-speed manual/DSG, four-wheel drive
Kerb weight: 1,446kg
Top Speed: 155mph
0-62mph: 5.7secs (5.5 DSG)
MPG (NEDC combined): 33.2 (33.6 DSG)
CO2: 199g/km (195g/km DSG)
Price: £21,495 to £34,995
Manufactured: 2010-2012
Love it: Genuinely exclusive, despite the VW badges
Loathe it: It's just too damned expensive
Spotted:Golf Rs in the PH classifieds
AUDI S3 (three-door)
Engine: 1,984cc 4-cyl turbo
Power (hp): 265@6,000rpm
Torque (lb ft): 258@2,500-5000rpm
Transmission: 6-speed manual/S-Tronic, four-wheel drive
Kerb weight: 1,455kg
Top Speed: 155mph
0-62mph: 5.7secs (5.5 S-Tronic)
MPG (NEDC combined): 33.2*(34.0 S-Tronic)
CO2: 199g/km* (193g/km S-Tronic)
Price: £9,495 to £29,495
Manufactured: 2006-2012
*2008 UK model
Love it: After 14 years it's still the benchmark in this sector
Loathe it: The styling doesn't live up to the premium image
Spotted:Audi S3s in the PH classifieds
Pictures: S3 photos courtesy of What Car?