When the fourth-gen Mazda3 arrived for 2019, it grew a little more stylish, a lot more upscale; and loads more practical too, adding all-wheel drive into the mix for the first time. How does it get better than that? Well, for ’23 the 3 adds an engine update that promises to deliver more power and better efficiency. Time to speak truth to this power.

The Mazda3 has always been a great compact car, big on both fun and value, and has earned numerous MotorWeek Drivers’ Choice Awards over the years. This current-gen has been on the road for 4-years now, and it gets even better for 2023.

Starting with the powertrain, the base 2.0-liter I4 has been eliminated leaving just 2 versions of the 2.5-liter 4-cylinder, turbo and non-turbo. Base versions get a 5-horsepower bump to 191-horsepower, along with updates for its cylinder deactivation system. The 2.5 Turbo fits standard all-wheel drive and outputs the same 250-horsepower and 320 lb-ft. of torque as last year; provided you use Premium gas. Max ratings drop to 227-horsepower and 310 lb-ft. with Regular.

A 6-speed manual transmission remains available in front-wheel drive 3s, but AWDs come exclusively with a sport-tuned 6-speed automatic. We found it well-sorted and seemingly always on the same page as us whether we were shuffling through back roads or sitting in traffic. There is a softer overall feel compared to Mazda3s of old, which you’ll appreciate when encountering harsh pavement, but it still feels plenty agile when called upon.

That softer feel certainly carries over inside, where it has gotten much quieter, and quite nicely finished, consistent with Mazda’s Audi-like premium intentions. All 3s get an 8.8-inch center display, and all of the fingerprints on our test car’s screen signifies most people assume it’s a touchscreen. It’s not, however, as inputs are made with a rotary controller on the console. It’s not the most intuitive system, but once you’re past the learning curve, it’s tolerable.

The rear seat room doesn’t have the roomy feel of the Subaru Impreza, but space is certainly more than adequate compared to the rest of the compact set. Rear cargo space for this hatchback rates a good 20.1 cubic-ft. with trunk space in the sedan coming in at 13.2 cubic-ft. So yes, the Mazda3 remains available in both sedan and hatchback, but we still prefer the 5-door hatch both for its practicality and for its sporty looks. Top Turbo Premium Plus gets gloss black aero treatments including a roof spoiler and front air dam.

At the test track, power from the 2.5-turbo felt more than adequate off the line, using all-wheel-drive grip to bite into the pavement and get up and go to 60 in 6.0-seconds flat. There was virtually no turbo lag, and the engine felt nicely refined with its power delivery. Transmission operation was equally as smooth and kept the power flowing quite effectively throughout the ¼-mile, which ended in 14.5-seconds at 95 miles-per-hour. We really appreciate a well-tuned 6-speed in this world of overactive 8 and 10 speed automatics.

While there was definitely some understeer to manage in our handling course, the 3 turned in quickly and provided real, sporting feedback through our cone course. I-Activ AWD features G-Vectoring Control Plus, which uses both engine torque vectoring as well as selective braking to minimize body roll, and preserve the lively feel we’ve come to expect from Mazda. In panic braking runs, the pedal was soft, but that kept ABS pulsing to a minimum; and the results were great, as we averaged a very short 106-feet from 60, with minimal nose dive and stable, straight stops.

Government Fuel Economy Ratings for an all-wheel drive Turbo are 23-City, 31-Highway, and 26-Combined; we averaged a good 28.4 miles-per-gallon of Regular.

Obviously by eliminating the previous base engine, prices have taken a jump for ’23, but so has everything else. Still they remain more than reasonable. The base S now starts at $26,855, with the top Turbo Premium Plus at $37,815, with many options in between. And sedan prices are even more sensible, starting at $23,715.

Like most brands, Mazda seems to be going all-in on SUVs; as the 3 is the last family sedan and hatchback in their lineup. And it would be a real shame if that were to change. As the 2023 Mazda3, the hatchback in particular, is just about the perfect car, offering utility vehicles levels of practicality along with better than average luxury, plus handling performance that few crossovers can match. So, long live the Mazda3!