The Mercedes A Class was perennially outclassed by the Audi A3 and the BMW 1 Series until the arrival of the third generation model in 2013 that changed things drastically and sent the competition back to the drawing board. Without question, the A-Class is a leader in the hatchback category and is dominant across many aspects such as design, space, comfort and performance. It competes with the Audi A3, BMW 1 Series, Volvo V40, VW Golf and Peugeot 308.