A Decade Later, BMW's M2 Is Finally A Proper Audi RS3 Rival
Five years ago, BMW added an optional all-wheel-drive system to the M3 and M4 for the very first time. While rear-wheel drive remains available, the AWD models unlocked another layer of performance and usability in these powerful M cars. Now, a full decade since the first BMW M2 went into production, the smallest M car has received its own AWD option for the first time. Suddenly, the M2 is not merely the most playful, engaging track toy in this segment, but a brutally quick sports coupe that can finally keep up with the Audi RS3 from point to point, even in unfavorable conditions. These German weapons may be small, but they punch well above their weight. Here's how the new BMW M2 xDrive compares to the Audi RS3.
Quattro AWD: A Brief History
While early BMW M and Mercedes-AMG cars were often seen spinning their rear tires in a cloud of smoke, Audi has been more closely associated with all-wheel drive than perhaps any other automaker-at least, as far as road-based performance vehicles are concerned. The iconic Audi Quattro set the tone for the brand with its permanent AWD system in the 1980s. This road and rally car revolutionized the performance market with its impressive grip and speed, regardless of the weather conditions. Coupled with a turbocharged five-cylinder engine, it was the blueprint for many RS models to come.
The Audi RS2 Avant that went into production in 1994 was the first RS model. Like the Audi Quattro, it used a turbo five-cylinder engine and quattro AWD. Today, this feisty wagon-which was developed in collaboration with Porsche-has developed a cult following around the world. RS versions of everything from the small A3 to the mighty Q8 SUV eventually followed.
While quattro-equipped Audis have always been quick, earlier models suffered from excessive understeer that made them less enjoyable than RWD BMWs. Over the years, Audi has virtually eliminated this tendency thanks to enhancements like the Active Sport Differential. In the current RS3, a torque-vectoring rear differential enhances high-speed stability and even comes with a drift mode. This setup offers the best of both worlds: RWD-like drifts with the security of AWD. But the M2's xDrive AWD system goes one step further.
Related: Do You Really Need AWD In Your Next Vehicle?
BMW M2 xDrive: Still RWD When You Want
In the Audi RS3, up to 50% of the total torque can be directed to the rear wheels, regardless of the driving mode you choose. Therefore, it's always operating as an AWD vehicle. The new M2 xDrive differs by allowing the driver to select 2WD mode with the DSC system deactivated. By doing so, torque is directed to the rear wheels exclusively, allowing for a pure RWD experience. It's not going to get you the fastest lap times or the most control, but in safe environments, the M2 xDrive will likely still have the edge for pure thrills. Despite the Audi's clever RS Torque Splitter-which can independently distribute up to 100% of the available rear torque to the outside wheel-the M2 has the more versatile AWD system because it can be driven as a fully RWD car.
"The system's rear-wheel bias fits the familiar M blueprint," says BMW of the M2's xDrive setup. "In normal driving, power is sent exclusively to the rear wheels. Only when they cannot feed any more power to the road does the all-wheel-drive system bring the front wheels into play."
Related: 2027 BMW M2 xDrive Adds AWD And Hits 60 MPH In 3.3 Seconds
RS3 Vs. M2: The Raw Performance Numbers
Before the M2 xDrive was revealed, the Audi RS3 was a full half-second quicker to 60 mph than the manual M2 with RWD. That's quite a substantial difference at this level. In the wet, the M2 driver would find it impossible to keep up with the grippy Audi. All that has changed with the arrival of the M2 xDrive, as the performance specs below show.
The M2 is significantly more powerful than the RS3, but it's also heavier by 361 lbs. As a result, the two cars are incredibly closely matched, with identical 3.6-second claimed times for the 0-60 run. They remain neck-and-neck up to 124 mph (200 km/h), so one would need a track with a long straight section to establish if there's any difference between them at very high speeds.
The M2's xDrive system allows it to finally keep up with the RS3 sedan, though. It'll be fascinating to see if the M2 xDrive can break the Nürburgring record for production compact cars, set by none other than the M2 CS. The CS managed to complete a lap of the track in 7:25.5 minutes, stealing the record from the RS3 in the process. Although the CS remains ahead in terms of raw power (523 hp), it makes do with RWD only.
Sedan Vs. Coupe
A key difference between these two cars remains their body styles. The M2 xDrive remains a dedicated two-door coupe, while in the U.S., the RS3 is only available as a sedan. Despite the extra pair of doors, it's actually the BMW that's longer and wider by a few inches. It's also taller by a hair and has a 4.4-inch longer wheelbase.
Both cars can accommodate smaller adults in reasonable comfort at the back, although the BMW only seats up to four and more effort is required to access its back seat. Intimate, driver-focused cabins are common to both, with each showing off sporty flourishes from the M and RS divisions; the M2 has the M tri-color stripes on the door panels and the RS3 gets special stitching on the seats in a honeycomb pattern.
They may be smaller than other BMW and Audi models, but both are solidly built and equipped with the latest infotainment and safety systems.
Final Thoughts
Audi's hallmark quattro AWD system is still brilliantly effective, but where the RS3 and M2 xDrive are concerned, the Audi may have been surpassed. Although performance specs are nearly identical, the M2's ability to access a pure RWD mode sets it apart from its Audi rival. It will take a back-to-back drive to break down all the nuances between these two and determine a clear winner, but it's safe to say that the rivalry between the littlest M and RS models has never been closer.
Copyright 2026 The Arena Group, Inc. All Rights Reserved.
This story was originally published June 13, 2026 at 7:35 AM.