Audi is marking its five-cylinder engine’s golden jubilee with the new RS3 Competition Limited – and it could mark the end of the line for the brand's signature powerplant. 

Priced at a whopping £92,885 – making it more expensive than the new RS5 – the special RS3 is the most focused iteration of the hot hatch yet. It brings trick remote-reservoir dampers and a series of tweaks aimed at enhancing the powertrain’s "emotional appeal".

But the car could carry a deeper significance, as Audi CEO Gernot Döllner has told Autocar the future of the brand's signature five-pot is "still under discussion". 

The unit doesn't comply with the forthcoming Euro 7 emissions regulations, meaning Audi would have to stump up a significant investment to re-engineer it for the stricter new rules. The business case for doing so is hampered by the engine's niche application: it's used only in the RS3 and the Cupra Formentor VZ5.

Döllner said: “I don’t know if we’re able to refinance the investment in EU7 regulations. We will have the discussion at board level.”

Demonstrating a clear will to retain the engine, he added that “it would have a great future in a narrow segment”, giving the RS3 a clear point of difference from rivals such as the four-cylinder Mercedes-AMG A45 and six-cylinder BMW M2.

But until Audi can commit to an investment to safeguard the five-pot's future, the RS3 Competition Limited represents its ultimate form.

Chief among the modifications brought by the Competition Limited is a thinner bulkhead that lets more induction noise into the cabin. The exhaust has also been modified so its active flaps open earlier in the rev range.

Making 394bhp and 369lb ft of torque, the turbocharged 2.5-litre engine is no punchier than in the regular RS3.

Instead, Audi has focused on the chassis, fitting a stiffer rear anti-roll bar, stiffer rear springs and new adjustable coilover suspension. Twin-tube dampers are found at each corner, with the front pair featuring racing-style fluid reservoirs that provide better cooling to ensure more consistent handling under repeated high loads. A similar set-up was used to great effect on the 2005 Renaultsport Clio 182 Trophy.

A tool kit is provided with the car for adjusting the bump and rebound stiffness of the dampers. The fronts can be accessed through the engine bay, while Audi advises removing the rear wheels to adjust the corresponding set. Low-speed bump damping can be adjusted to 12 different settings; high-speed bump damping through 15 settings; and rebound through 16 settings.

The RS3 Competition Limited also gets a set of aerodynamic canards at the front, a split chin spoiler and a new rear spoiler that produces extra downforce.

Completing the more aggressive exterior is a new Malachite Green paint option – reprised from the legendary short-wheelbase Sport Quattro – and a retro Audi Sport badge, along with new ‘welcome light' graphics.

When the car is locked or unlocked, the front and rear lights illuminate in a 1-2-4-5-3 pattern, referencing the firing order of the five-cylinder.

Inside, its bucket seats are upholstered in black leather and gold Dinamica microfibre with contrasting off-white stitching. The seatbelts are coloured the same off-white.

Meanwhile, the digital instruments are now white, referencing the dials in the old five-cylinder RS2.

A total of 750 hatchbacks and saloons will be built, but only 10 are UK-bound, all of them hatchbacks.

The Competition Limited's £92,885 price tag makes it £30,435 more expensive than the regular RS3.