There are actually quite a few subtle differences. They have different exhausts (slightly larger on the TTS than the S3 for example). My TTS officially prefers 98RON fuel (S3 never stipulated that preference, although of course that's what I gave her). The gearbox is a lot more lively in the TTS, much quicker to drop a gear to aid progress. I found the S3 had an odd mechanical whine when accelerating, which I have found to be entirely absent on the TTS despite the similar mechanicals.
As for why Audi made those differences, conjecture of course, but I suspect its so that the difference between an S3 and TTS isn't JUST based on looks and practicality, there is a performance advantage too, and that makes the offerings a little more distinct.
Here in Mexico TTS has 285hp... could it be some marketing since the US gets less hp but also has a different engine without port injection and other differences as well. In Mexico we get the euro model with all the bells and whistles but an advertised 285hp.
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