AUDI'S latest A3 hatchback has proved to be a big hit with UK buyers and now the booming German car maker is set to release its high performance S3 version.

And the new hot hatch, on sale in July, comes with a more powerful and completely new turbocharged 2.0-litre FSI petrol engine.

Performance figures are impressive, with the 300bhp power pack offering blistering acceleration. The six-speed manual version can hit a claimed 62mph in just 5.2 seconds and if you opt for the six-speed twin-clutch automatic it will surge to the same speed at just 4.8 seconds.

Top speed for both is limited at 155mph.

Not only has the S3's performance been uprated but fuel consumption has been reduced to a claimed 40.4mpg on the manual version with CO2 emissions reduced to 162 g/km. The automatic returns 40.9mpg and 159 g/km.

The three-door S3 has also been manufactured using new, ultra-lightweight aluminium and steel body shell giving it a more rigid chassis and the new S3 is 60kg lighter than the previous model. It has a slightly longer wheelbase which also helps to improve handling.

I drove the manual S3 on German autobahns, where on some stretches there is no speed limit, and this latest S3 certainly gets down to business.

Acceleration, even if you're already topping the ton, is instant and pins you to the snug fitting seats which are decked out with S3 logos in the deep leather backs.

Okay, you won't be able to do this over here, but on ordinary A roads it makes overtaking a piece of cake, and thanks to the S3's superb braking system you can drive with confidence knowing you have all the stopping power you will need.

The quattro all-wheel drive system also has a huge influence on the S3's handling on twisty routes. During normal driving most of the power goes to the front wheels, but if added traction is needed this is swiftly transferred to the rear making grip and balance on swift corners safer and more stable.

All these features combine to give you as a driver every confidence in the way the S3 will handle when pushed hard. New S3 has also had the suspension lowered by 25mm over the standard A3 which adds to its stability.

On the move, even at high speed, I found very little road, engine or wind noise invading the cabin. What you do get is a real sporty sound from the four exhaust ports. Audi engineers have designed a sound flap to the exhaust system that opens at certain engine speed ranges to give the S3 added hot hatch appeal.

The new S3 also incorporates Drive Select, which at the touch of a button allows you to select five different modes of steering, throttle and suspension settings.

To make the high performance S3 stand out from the ordinary A3 there are unique exterior and interior features including a single frame grille, Xenon headlights and LED daytime running strips, 18in cast aluminium wheels, black painted brake calipers with S3 badge, body-coloured side sill trims and S3 badges front and back.

The interior of the S3 is up to Audi's usual high standard with a nicely designed wrap-around dashboard with inlays in matt brushed aluminium, a flat-bottomed steering wheel (with paddles for the S tronic model), a folding satnav and audio screen, seats with embossed S3 logo and stainless steel pedals and footrest.

As far as drivers aids goes there is a multitude of gizmos on offer, including adaptive cruise control, active lane assist, camera based traffic sign recognition, air conditioning, rear parking system, MMI navigation Plus, LED interior light package plus much more.

At £30,500 for the manual and £31,980 for the automatic the S3 is a fair bit of cash, but anyone ordering the new S3 will be getting a high quality motor with superb performance when needed yet a civilised ride around town.