In 2004, the Audi A3 received an update, coming with a completely new front end, big grille, refreshed headlights, new bumpers, and new wheels and exterior finishes.
Its five-door version was named Sportback just to differentiate it from the three-door version, named hatchback.

The second-generation of the Audi A3 was launched at the 2003 Geneva Motor Show. It was based on a new platform and, in June 2004 the Sportback version with five doors was introduced to the market. On the hatchback segment, the Sportback was the only premium car that offered five doors. The BMW 3-Series Compact and the Mercedes-Benz Sportcoupe were available only in three-door versions.

There was a new design signed by Walter da Silva but it featured the new front grille introduced for the first time on the Audi A8 W12. When compared to the 3-door version, the A3 Sportback was longer by 80 mm (3.14”) due to a longer wheelbase. On the roof, the customer could choose a pair of silver roof-rails. The rear had received a new bumper and A4-style taillights. Its third stop-light was installed on the small roof-spoiler.

Inside, there was room for five passengers. It was a premium compact-sized vehicle that featured premium amenities such as automatic climate control, a new semi-automatic transmission. Leather seats and sport-bucket seats were offered as an option, or standard on specific models.

Compared with its rivals, the A3 Sportback was available with all-wheel-drive systems.