What's the difference?
Audi’s littlest and most affordable SUV, the Q2, has been updated with new looks and tech, but something else has snuck in with it. Or should I say roared in? It’s the SQ2, with a whopping 300 horsepower and a snarling bark.
So, this review has something for everybody. It’s for those who want to know what’s new for the Q2 in this latest update - those thinking of buying a cool-looking little SUV from Audi - and for those who want to wake their neighbours up and frighten their friends.
Ready? Let’s go.
If you're in the market for a premium-style four-wheel drive wagon with eight seats and a petrol V8 engine and you live in Australia, your choices have been rather limited. You'd be looking at something like the Nissan Patrol or the Land Rover Defender 130.
Well, that has now changed as General Motors Specialty Vehicles (GMSV) is importing the GMC Yukon Denali to Australia. This top-of-the-range Yukon arrives here as a left-hand drive vehicle and is converted to right-hand drive at a facility in Victoria to suit our market.
The Denali has a price tag just under $175,000, though, and that makes it a lot more expensive than most vehicles that could be considered rivals in the Aussie market. Is it worth it?
Read on.
The Q2 is good value and great to drive – especially the SQ2. The exterior looks new, but the cabin feels older than the larger Q3, and most other Audi models.
More standard advanced safety tech would make the Q2 even more appealing, as would a five-year, unlimited-kilometre warranty. While we’re at it, a hybrid variant would make enormous sense.
So, a great car, but Audi could offer more to make it an even better proposition for buyers.
The 2025 GMC Yukon Denali is a big, comfortable, eight-seat 4WD with few rivals in the Aussie market. However, while it may occupy its own niche, it doesn't offer enough in terms of premium look and feel and towing capacity over what could be considered its rivals – and it all comes back to that price tag.
While it lacks a competitive warranty and its price puts it way out of reach of a lot of 4WD buyers, if you are in the market for a big premium-style wagon with a V8 and eight seats – and the Nissan Patrol and Land Rover Defender 130 aren’t your cup of tea – then the Yukon Denali just might be the right choice for you.
But when all is said and done, for the price of the Denali, you could buy two Nissan Patrols – maybe not brand-new ones – and a camper trailer and a couple of cartons of beer.
This updated Q2 looks almost identical to the previous one and really the only changes are subtle styling tweaks to the front and back of the car.
The front air vents (they aren’t real air vents on the Q2, but they are on the SQ2) are now larger and pointier and the top of the grille is lower. Around the back, the bumper now has a similar design to the front, with those pointy polygons set wide apart.
It’s an angular little SUV, full of sharp-edged shapes like some kind of acoustical wall in an auditorium.
The SQ2 just looks more aggro, with its metallic-trimmed air vents and beefy quad exhaust.
The new colour is called Apple Green and it’s not really like any colour on the road – well not since 1951, anyway when this hue was hugely popular on everything from cars to telephones. It’s also very close to Disney’s “Go Away” green – look it up and then ask yourself if you should be driving a car that’s kind of invisible to the human eye.
I digress. Other colours in the range include Brilliant Black, Turbo Blue, Glacier White, Floret Silver, Tango Red, Manhattan Grey and Navarra Blue.
Inside, the cabins are the same as before, apart from the larger, sleeker media display, and there are some new trim materials, too. The 35 TFSI has silver inlays with a diamond paint finish, while the 40TFSI has aluminium door sills.
The Q2 has beautiful quilted Nappa leather upholstery, which goes beyond just covering the seats and to the centre console, doors and armrests.
All options offer well laid out and premium feeling cabins, but the disappointing part is that it's an older Audi design, which started out in the third-generation A3, launched in 2013, and still exists on the Q2, even though most Audi models, including the Q3, have the new interior design. This would bug me if I was thinking about buying a Q2.
Have you thought about a Q3? It’s not that much more in price, and it’s a tad bigger, obviously.
The Q2 is tiny, at 4208mm end to end, 1794mm wide and 1537mm tall. The SQ2 is longer at 4216mm long, 1802mm wide and 1524mm tall.
The 2025 GMC Yukon Denali is 5337mm long (with a 3071mm wheelbase), 2378mm wide, 1943mm high and has a kerb weight of 2813kg.
Suffice it to say, it’s big.
The signature Denali grille – with LED headlights and chrome accents – is the size of a house and it’s eye-catching.
In terms of design, the rest of the Denali is standard SUV, but it's so massive it can't help but have plenty of presence on the road.
This 4WD has 24-inch rims, which are not suited to off-roading at all, but I’ll get to that later.
The Denali’s dual exhaust system, with polished stainless-steel tips, adds to the street-cool aesthetic.
The rest of the Denali exterior works – but it’s an in-your-face kind of success.
Inside, the space is cavernous and with leather upholstery, wood-look trim and soft-touch surfaces you’d expect it to feel like a plush, well-appointed cabin. But it doesn’t quite hit the mark.
Sure, all three rows of seats offer enough in terms of comfort and amenities but, for a $175,000 vehicle, the cabin lacks a distinctive premium feel, as you'd assume it should in a vehicle at this price point. That's a bit of a disappointment.
The Q2 is basically a current model Audi A3, but more practical. I’ve lived with the A3 Sedan and Sportback and while rear legroom is just as confined in those as it is in the Q2 (I’m 191cm and need to squish my knees behind my driving position) getting in and out is easier in the SUV, with its elevated ride height and taller door apertures.
The easier access helps enormously when helping kids into their child seats. In an A3 I need to kneel on the footpath to be at the right level to put my son into the car, but not with the Q2.
The boot space of the Q2 is 405 litres (VDA) for the front-wheel-drive 35 TFSI and for the SQ2 it’s 355 litres. That not bad, and the large hatch makes for a big opening, which is more practical than a sedan’s boot.
Inside, the cabin isn’t enormous, but rear headroom is good, thanks to the fairly high roof.
Cabin storage isn’t terrific, although the front door pockets are big and there are two cupholders up front.
Only the SQ2 has USB ports in the back for rear passengers, but all Q2s have two USB ports up front for charging and media – plus all have wireless charging for phones.
The Denali has retractable sidesteps, which is a big help to hobbits, such as me, and it also has big grab handles, again a welcome addition for the purposes of easier ingress for those on the wrong side of tall.
Once you climb inside, it’s easy to appreciate the fact that this wagon’s interior is vast, functional and comfortable, with plenty of storage spaces for everything – glove box, centre console, sunglasses case, door pockets etc – and plenty of charge points for your array of smart devices, even a wireless charge pad.
It’s a well-designed cabin but, as mentioned earlier, the Denali lacks the prestige fit and finish and even build quality usually showcased in something at this price-point.
Instead, there are expanses of hard plastic throughout, storage receptacles with flimsy lids, and lacklustre fit and finish here and there.
The vertically-oriented 16.8-inch touchscreen multimedia system is simple enough to use, even when the road gets bumpy, although it sometimes took a few stabs of my finger to get the system to register a command.
Climate control switches and the like are located under the screen.
The three rows of seats offer more than adequate levels of comfort – the front seats are heated and ventilated and the second row’s outboard seats are heated – and each row also has the appropriate amount of amenity to suit its occupants, including cupholders, USB-C sockets, map pockets and the like.
The second-row seats even have 12.6-inch HD colour touchscreens – one on the back of each front-row headrest – with which to enjoy… whatever. Those units also have wireless headphones so everyone else in the vehicle doesn’t have to listen to… whatever.
Those in the third row get air vents, a USB-C plug and two cupholders on both sides.
Rear cargo volume with all seats up is 722 litres. With the second row folded that number expands to 2056 litres, and with only the front seats left standing you have a 'yuge' 3480 litres to play with.
The boot area has tie-down points, a shallow section of underfloor storage and plenty of packing potential. The tailgate door is power-assisted with remote open and close.
As I mentioned, the Denali’s interior is very functional and very comfortable and that includes the second and third row, which offer plenty of space.
Overall, my thoughts on the Denali’s cabin interior boil down to “massive”, “comfortable” and “feels cheap”.
The Q2 entry grade is the 35 TFSI and it lists for $42,900, while the 40 TFSI quattro S line is $49,900. The SQ2 is the king of the range and lists at $64,400.
The SQ2 has never been to Australia before, and we’ll get to its standard features in a moment.
Aussies have been able to buy a 35 TFSI or 40 TFSI since the Q2 arrived in 2017, but now both have been updated with new styling and features. The good news is the prices have only gone up by a few hundred bucks, compared to the old Q2.
Standard on the 35 TFSI are LED headlights and taillights, LED DRLs, leather seats and steering wheel, dual-zone climate control, Apple CarPlay and Android Auto, eight-speaker stereo with digital radio, front and rear parking sensors and a rear-view camera.
That was all standard on the previous 35 TFSI, but here’s what’s new: an 8.3-inch media screen (the old one was seven inches); a proximity key with push button start (great news); wireless phone charging (brilliant), heated exterior mirrors (more helpful than you’d think), ambient interior lighting (aww… pretty); and 18-inch alloys (heck yes).
The 40 TFSI quattro S line adds sports front seats, drive-mode selection, a power tailgate, and paddle shifters. The previous one had all that, too, but this new one has the sporty S line exterior body kit (the previous car was just called Sport not S line).
Now, the 45 TFSI quattro S line may appear not to get much more than the 35 TFSI, but the extra money is getting you more grunt and an awesome all-wheel-drive system – the 35 TFSI is front-wheel-drive only. If you love driving and can’t afford the SQ2, then $7K extra for the 45 TFSI is absolutely worth it.
If you have saved all your pennies and the SQ2 is what you’re zeroing in on, then here’s what you get: Metallic/pearl effect paint, 19-inch alloys, matrix LED headlights with dynamic indicators, the S body kit with quad exhaust, sports suspension, Nappa leather upholstery, heated front seats, 10-colour ambient lighting, stainless-steel pedals, auto parking, a fully digital instrument cluster, and a 14-speaker Bang & Olufsen stereo.
Of course, you get an incredible high-output four-cylinder engine, too, but we’ll get to that in a moment.
The 2025 GMC Yukon Denali is a top-shelf, eight-seat, 4WD V8-powered wagon with a price-tag of $174,990, before on-road costs.
The standard equipment list is a comprehensive and its more notable features include a 16.8-inch touchscreen multimedia system (with wireless Apple CarPlay and Android Auto - but no sat-nav), a 14-speaker Bose sound system, power-adjustable heated and ventilated leather-accented seats, a head-up display, 12.6-inch rear HD touchscreens for the second-row passengers, a panoramic sunroof and an auto-sense power rear door.
It also has a 360-degree high-definition camera system (with up to 11 camera views), power-retractable sidesteps, 24-inch machined and painted 'pearl nickel' alloy wheels (on Bridgestone all-season tyres), all-around adaptive air suspension and a maximum braked towing capacity of 3628kg (when it has a 70mm ball and weight-distribution hitch).
Exterior paint choices include 'Onyx Black', 'Summit White', 'Titanium Rush Metallic', 'Volcanic Red Tintcoat' (on the test vehicle and costs $2000), 'Downpour Metallic', 'White Frost Tricoat' and 'Sterling Metallic'.
There are three grades and each has a different engine.
The 35 TFSI has a new 1.5-litre four-cylinder turbo-petrol engine making 110kW and 250Nm; the 40 TFSI has a 2.0-litre turbo-petrol four making 140kW and 320 Nm; and the SQ2 has a 2.0-litre turbo-petrol as well, but it puts out a very impressive 221kW and 400Nm.
The 35 TFSI is front-wheel drive, while the 45 TFSI quattro S line and SQ2 are both all-wheel drive.
All have a seven-speed dual clutch automatic transmission – nope you can’t get a manual. There are also no diesel engines in the line-up.
I drove all three cars and, from an engine perspective, it’s like turning the ‘Smile Dial’ up from Mona Lisa in the 35 TFSI, to Jim Carrey in the SQ2, with Chrissy Teigen in between.
The GMC Yukon Denali has a naturally-aspirated 6.2-litre V8 petrol engine – producing 313kW and 624Nm – and that’s matched to a 10-speed automatic transmission.
This is an impressive set-up – the Denali is punchy off the mark, smooth and refined at highway speeds and overall it offers a composed and comfortable driving experience.
The Denali has a full-time 4WD system, selectable driving modes include 'Normal', 'Sport', 'Off-road' and 'Tow' and an electronic limited-slip differential is standard.
Audi engines are superbly modern and efficient – even its monster V10 can shut down cylinders to save fuel, and so can the new 1.5-litre four-cylinder engine in the 35 TFSI. Audi says that over a combination of urban and open roads, the 35 TFSI should use 5.2L/100km.
The 40 TFSI is thirstier at 7L/100km, but the SQ2 demands a bit more at 7.7L/100km. Still, not bad.
What’s not good is the lack of a hybrid, PHEV or EV variant of the Q2. I mean the car is small and ideal for the city, and therefore a perfect candidate for an electric version. Not having a hybrid or EV is why the Q2 model range doesn’t score well for its overall fuel economy.
Obviously, with such a big vehicle – almost three tons – driven by such a big V8 engine, fuel consumption is a concern. The 2025 GMC Yukon Denali has a listed fuel consumption figure of 12.8L/100km (on a combined, urban/extra-urban cycle).
I recorded 16.2L/100km on this test. I did a lot of high- and low-range 4WDing and this wagon was never working hard.
The Denali has a 91L fuel tank so, going by my on-test fuel-consumption figure, you could reasonably expect a driving range of about 560km from a full tank.
When it comes to the driving part, Audi can almost do no wrong – everything the company makes, whether it’s low powered or rip-your-face-off fast, has all the ingredients for engaging driving.
The Q2 range is no different. The entry-grade 35 TFSI has the least grunt and, with its front wheels pulling the car along, it’s the only one in the family that’s not blessed with all-wheel drive, but unless you’re doing laps at a track you’re not going to be wanting more power.
I drove the 35 TFSI for more than 100km on the launch, through the country and into the city, and in all situations, from overtaking on highways to merging and slow traffic, the most affordable Q2 performed well. That 1.5-litre engine is responsive enough and the dual-clutch transmission changes swiftly and smoothly.
Superb steering and good visibility (although that rear three-quarter view is slightly obstructed by the back pillar) makes the 35 TFSI easy to drive.
The 45 TFSI is a good mid-point between the 35 TFSI and the SQ2 and comes with a very noticeable bump in oomph, while the extra traction from the all-wheel drive is a reassuring addition.
The SQ2 isn’t the hardcore beast you might think it is – this thing would be super easy to live with daily. Yes, it has firm sports suspension, but it’s not overly hard, and that engine, which nudges almost 300 horsepower, doesn’t feel like a Rottweiler on the end of a leash. If anything, it’s a Blue Heeler that loves to run and run, but is happy to take it easy and get fat.
The SQ2 is my pick of the bunch, and not just because it’s quick, agile, and has an intimidating growl. It’s also comfortable and luxurious, with sumptuous leather seats.
The Denali is imported to Australia as a left-hand drive vehicle and then Walkinshaw's subsidiary company Premoso remanufactures the US 4WD wagons to right-hand drive at their facility in Clayton, Victoria.
And that mob has done a commendable job.
Firstly, the Denali is very impressive on general driving duties – settled and composed, that V8 just rumbles along. It’s pretty close to flawless on the open road - smooth and refined.
But off-road is a different story – especially in low-speed technical low-range 4WDing – and a lot of that has to do with the Denali’s sheer bulk and its 24-inch wheels.
The big pizza plate rims and paper-thin Bridgestone all-season tyres (285/40) aren't suited to four-wheel driving as they don’t offer the grip of a decent all-terrain and you can’t drop air pressures because there isn’t enough tyre there. Worth noting the spare is a Maxxis Bravo HT-750 (265/70R17).
In its favour, though, the Denali has a range of drive modes – one of which is Off-road and that seems well calibrated for a variety of 4WD situations – as well as high- and low-range gearing and an electronic limited slip diff.
Steering has a nice balance to it at low speeds, throttle response is quite impressive and controlled. And you can call on that 624Nm from the big 6.2-litre V8 pretty much as you see fit, and it delivers it smoothly and in a controlled fashion.
This top-shelf variant has air suspension – that does some levelling out of even major imperfections in the road or track surface – and it does have a special damper system also working away to even out ride and handling.
In terms of off-road measurements, the Denali offers approach, departure and rampover angles of 24.8 degrees, 20.5 degrees and 22.5 degrees, respectively.
Ground clearance is listed as 205mm, wading depth is not quoted, but likely a guesstimated 700-800mm, and turning circle is 12.4m.
And again, this is a big vehicle – 2813kg – so it requires more consideration, more patience, more skill and probably more experience than perhaps some smaller four-wheel drives do.
The Denali's payload is listed as 634kg, which is not a lot for a massive vehicle like this. Its towing capacities are 750kg (unbraked) and 3500kg braked.
If you do, however, put a 70mm tow ball and a weight-distribution hitch on the Denali, you can tow as much as 3628kg legally (braked).
That's not a lot more than something like the Nissan Patrol, which is 3500kg, or the equivalent 4WD wagon or ute available in Australia already. So the extra towing capacity in the Denali is not that big of a selling point. GVM is 3447kg and GCM is 6577kg.
Ultimately, even though the Denali has sound four-wheel drive mechanicals and reasonable off-road traction control, it's hampered by its gargantuan dimensions and let down by its 24-inch wheels and paper-thin tyres.
If you got rid of the standard wheel-and-tyre combination and replaced it with a set of decent, aggressive all-terrain tyres on 17 inch or 18 inch, or even (if you had to) 20 inch wheels, those changes would go a long way to making this over-sized 4WD capable in some off-road scenarios.
In its current state, however, the Denali is a tow vehicle playing at 4WDing rather than the other way around.
The Q2 was given the maximum five-star ANCAP rating when it was tested in 2016, but by 2021 standards it is light on advanced safety tech.
Yes, AEB with pedestrian and cyclist detection is standard on all Q2s and the SQ2, and so is blind-spot warning, but there’s no rear cross traffic alert or reverse AEB, while lane-keeping assistance is only standard on the SQ2, along with adaptive cruise control.
For a car that will most likely be purchased by younger people, it doesn’t seem right that they’re not being protected as well they would be in more expensive Audi models.
For child seats, there are two ISOFIX points and three top-tether anchor mounts.
A space-saver spare is under the boot floor.
The GMC Yukon Denali does not have an ANCAP safety rating because it has not been tested.
Standard safety features include six airbags (including full-length curtain airbags for all three rows) and a full suite of driver-assist tech includes AEB (with pedestrian detection), adaptive cruise control, blind-spot monitoring, lane-keep assist, rear cross-traffic alert, front and rear parking sensors, tyre-pressure monitoring, a surround-view camera, trailer sway control, trailer hitch guidance with hitch view and more.
The pressure for Audi to move to a five-year warranty must be hugely intense, with Mercedes-Benz offering one, along with pretty much every other mainstream brand. But for now, Audi will only cover the Q2 for three years/unlimited kilometres.
As for servicing, Audi offers a five-year plan for the Q2 costing $2280 and covering every 12-month/15000km service over that time. For the SQ2, the cost is only a fraction higher at $2540.
The 2025 GMC Yukon Denali has a three-year/100,000km warranty – which is on the wrong side of ordinary in this day and age.
Roadside assistance is available for three years but check with your dealership for more details on that.
Servicing is scheduled for every 12 months or 12,000km. The first three workshop visits come in at $398.33, $420.33 and $506.48, including GST. Not outrageous for such a hefty beast.