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In April 2006, the lineup was expanded with the introduction of a more powerful 2.0 TDI with 170 PS (168 hp/125 kW). In August 2006, Audi announced the arrival of the S3 version, which became the new range topper. The 2.0 TFSI engine was re-engineered and uprated to 265 PS (261 hp/195 kW), and is available with standard quattro and a 6-speed manual gearbox. The second generation S3 is capable of accelerating to 100 km/h (62.1 mph) in 5.7 seconds. The springs and dampers were tuned for a harder setting, and ride height lowered by 25 mm (0.98 in). 225/40 ZR18 tyres are standard.
In January 2007, the normally aspirated (non-turbo) 2.0 FSI was replaced by a new turbocharged 1.8 TFSI engine, with 160 PS (158 hp/118 kW). It is available in front-wheel drive only.
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