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Audi RS3 spy shots foreshadow an ultra-hot hatch

Not all vehicle prototypes and mules require heavy camouflage - sometimes they can be hidden in plain sight. That's probably what Audi was hoping for while testing its new RS3 wearing S3 duds, but thanks to some visual and audible telltales, our spy photographers were able to recognize this as a precursor to the marque's ultra-hot hatch testing near the Nürburgring.
Our photographer noticed the signature exhaust note of a five-cylinder engine, which suggests the RS3 could borrow its motivation from the excellent TT RS. Producing at least 340 horsepower, this 2.5-liter turbo powerplant could be the perfect answer for the new A45 AMG from Mercedes-Benz. The big brakes on this RS3 mule give us our best idea about the car's high-performance intentions, with Audi RS wave brake rotors and six-piston calipers peering out from behind the oversized wheels.
In production form, the RS3 should have a much different appearance from what you see here, with sportier design cues including oval-shaped dual exhaust outlets and a more aggressive front fascia. While we're still waiting for our first taste of the S3 in the North America, we'll be holding our breath for the RS3 to make its way here, as well.

Audi Sport is actually a thing, and it's set to fight BMW M, Mercedes-AMG 

"Essentially, the name Audi Sport positions an enterprise already used to become better-recognized by the public and sets itself up to grow as a result." BMW has its M performance subsidiary. Mercedes-Benz has AMG. So what does Audi have? Some would say "nothing," a few would answer "Quattro," while many others would respond to that by saying, "Don't be stupid, Quattro's their all-wheel drive system." Well, it is, but Quattro GmbH is also the name of the company that has been tasked with creating Audi's highest performance cars, plus special-order customization, customer racing, and the Audi Collection of merchandise. Trouble is, nobody really knew that, as it was in no way a public-facing brand. That all changes with the entity now rechristened as Audi Sport. It doesn't stop there. "We wanted to have recognition for the R8 and RS models on a broad level," said Filip Brabec, vice president of product development. Audi Sport allows those models to be more easily identified as something different and special, much as AMG models are. "It's not just a piece of marketing material, but it'll also be recognized at a dealership." Around half of Audi dealers in the United States have signed up to be Audi Sport dealers, granting them unique training, access to track events and signage. The dealer buildings themselves will have special areas devoted to Audi Sport. So essentially, the name Audi Sport positions an enterprise already in use to become better-recognized by the public and sets itself up to grow as a result. But be it called Quattro GmbH or Audi Sport, what is it that they exactly do? Besides the R8, which it completely developed and manufactures, all its RS models are done in concert with Audi AG. Yet, that "done in concert" process has changed a bit over the years and head of Audi Sport product development Stefan Reil has been there from the RS cars' beginning 19 years ago. "When we started, our cars were launched in the last one or two years of the base Audi cars," Reil said. "We started development when the base cars were already in development or on the road. Now we have a much closer interaction with the people at Audi AG. Even when they start the concept work for the new car, we are right there in that process." View 23 Photos In the beginning, his small team would work on developing one car, finish it, and then move onto the next. Now, his much larger team is running multiple projects at the same time.

Audi passes BMW as top luxury brand in India

By the end of this decade, India is expected to be one of the top three car markets in the world, but automakers are already starting to duke it out for sales. In terms of premium brands, Automotive News says that Audi has jumped out to an early lead for sales in the country due in large part to the recent introduction of the Audi Q3 (shown above).
In 2012, Audi's sales increased 43 percent, rising to 9,350 units and outselling BMW (8,686) and Mercedes-Benz (7,015), both of which experienced a drop in sales last year of 9.5 percent and 5.4 percent, respectively. While none of these sales figures are particularly significant on a global scale, the article says that the market for premium cars in India is expected to quadruple by 2020 up to around 120,000 units. AN attributes Audi's lead to its offering of new SUVs while its rivals have been focusing on small hatchbacks.