What's the difference?
The 2025 Audi Q3 Sportback is a small but not-too-small SUV that sits within a close-knit segment. The Q3 Sportback attempts to spice up the premium end of this small SUV market by offering a design-focused 'coupe' body style, but is it enough for it to go 'tyre to tyre' against its main rival, the new BMW X2?
It's other rivals are also renowned for their luxury and on-road prowess - think the Mercedes-Benz GLA and Lexus UX. However, the changes for the new Q3 are small and its rivals have all benefitted from a recent refresh.
In this review we explore how the top-model Sportback S line 40 TSFI quattro handles being an urban dweller.
When the Lexus RZ launched in Australia just over two years ago CarsGuide questioned the Japanese luxury brand’s relatively late arrival to the EV party.
And since then, this large, premium, battery-electric, five-seat SUV has proved something of a niche player with less than 100 sold in 2024 and a similar number in prospect for 2025.
But there’s been movement at the RZ station. This comprehensively updated model features a revised powertrain, retuned suspension, tweaked AWD system and the availability of things like steer-by-wire and a tricky manual mode in the auto transmission.
And yes, Lexus claims it’s more refined than its already smooth and near-silent predecessor.
Scheduled to hit local showrooms in the first half of 2026, we were invited to take a first drive at its global launch. So, read on to see if this could be your next electrically propelled, performance luxury, family favourite.
The Audi Q3 Sportback S line 40 TFSI quattro is a quiet achiever.
Not as flashy or performance driven as some of its rivals, it still manages to tick almost every box when it comes to comfort and features. Like most models in the class, space in the back seat is modest but for a top-spec non-performance model, the price is alright and it’s lovely to drive.
Smooth, quiet, quality sums up this new and improved Lexus RZ. But will tricky new tech like steer-by-wire and a manual mode in the F Sport's auto transmission be enough to sway more premium electric SUV buyers its way? Fold in this car’s value proposition as well as the brand’s spectacular ownership package and it just might be.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The Q3 Sportback blends the practicality of an SUV with a sports-car presence due to its wide 2022mm stance and coupe-styled rear. With the black accents across the body, big 20-inch alloys and sharp Matrix LED headlights, the Q3 Sportback more than holds its own against the sporty prowess of its rivals.
The cabin establishes that it sits within the premium market with its leather mix upholstery and flashy-looking tech that headlines an angular dashboard. However, it's understated compared to its rivals, which all boast a stronger cabin presence.
Overall, it's not a ‘look at me car’ but the longer you look, the better it gets.
Not a tremendous amount of change in terms of exterior design for this update with the brand’s signature angular treatment retained including a prominent snub nose and 20-inch rims on both variants of the car.
The top-spec F Sport picks up extra aero-focused elements, particularly around the lower bumper at the front, as well as aero covers on the wheels and at the back a spoiler on the tailgate as well as a faux diffuser at the bottom of the lower bumper.
Not much has changed inside either except for a steering wheel-shaped elephant in the room in the form of a yoke that goes with the steer-by-wire function on the 550e F Sport. A significant, eyebrow-raising departure.
However, the curved instrument binnacle, central 14-inch multimedia screen as well as the design of the centre console remain unchanged.
Having said that, there are new ‘laser-patterned’ designs in the door card trims and dynamic lighting graphics in the doors, as well.
The functionality of the touch-dimmable panoramic roof has also been improved and it works beautifully.
The Q3 Sportback offers plenty of head- and legroom up front, with access that is accommodating because of the wider door apertures.
Like its rivals, the back seat offers modest space for my 168cm height, but it might be a squeeze if you taller. The middle seat suffers the most with legroom due to the tall transmission tunnel – keep this seat for kids only.
However, all other seats offer well-rounded comfort with decent-padding, side bolsters and the front get extendable under-thigh and lumbar supports, as well as heat functions.
The rear row also gets directional air vents, reading lights, two USB-C ports and a 12-volt socket. Longer trips will be comfortable for four occupants but five will elicit some grumbles.
Storage is good for the class with a glovebox that can fit a manual, a medium-sized middle console and a large phone tray. There are four cupholders and four drink-bottle holders throughout the car, and the rear row also get two map pockets.
The boot offers class leading space with its 530L capacity and only the BMW X2 beats it (by 30L). Storage options open up again with the 40/20/40 split of the rear row. The top model gets a powered tailgate with gesture control and temporary spare tyre.
Technology looks high-end and the touchscreen multimedia system is easy enough to use once you get your head around the menus. The built-in satellite navigation is top notch and the directions are pulled through to the digital instrument cluster.
The Q3 now gets wired/wireless Apple CarPlay and wired Android Auto. The CarPlay maintained a steady connection this week. Charging options are great with a total of four USB--C ports, two 12-volt sockets and a wireless charging pad to choose from.
At a fraction over 4.8m long, close to 1.9m wide and a bit more than 1.6m tall, with a 2850mm wheelbase, the ZR is a sizeable machine.
There’s plenty of breathing space in the front and in terms of practicality the first thing that jumps out, or rather it doesn’t, is the lack of a conventional glove box.
But there is a large box between the front seats to take its place, with the lid (which doubles as a centre armrest) performing the Lexus party trick of being able to open towards the driver or passenger.
There are two cupholders in the centre console with a wireless charging pad ahead of them, plus decent bins in the doors for bottles and other bits and pieces. An additional tray sits under the main, flying buttress-style upper console.
For power and connectivity, there are USB-C sockets for charging and media as well as a 12-volt socket in the lower console section.
Getting into the back is easy thanks to wide-opening doors and a large entry aperture and seated behind the driver’s seat set for my 183cm position I’ve got hectares of leg- and headroom. Shoulder room is best for two full-size adults rather than three, which would be a short-journey squeeze. Three up to mid-teenage kids will be fine.
In terms of storage there are pockets on the front seatbacks, bins able to hold a large bottle in the doors and two cupholders in the fold-down centre armrest. Individual ventilation control for rear seat passengers is always welcome.
Then for power, there are two USB-C outlets and a ‘house-power’ socket underneath them. The 550e F Sport also includes heating controls for the two outer rear positions.
Lower rear axle packaging enhances boot space with a generous 522 litres on offer, expanding to 1451L with the 60/40 split-folding second row lowered. Tie-down anchors and bag hooks are a thoughtful touch and there are handy storage boxes under the flat floor, ideal for charging cables.
The standard power tailgate is nice, while a repair-inflator kit instead of a proper spare isn’t. Braked trailer towing capacity is a handy 1.5 tonnes.
There are four variants for the Q3 before you hit the high-performance model, and our test vehicle is the top S line 40 TFSI quattro model, which is priced from $70,800, plus on-road costs, making it the most affordable compared to its rivals.
Its closest rival is the Lexus UX300h AWD F Sport with a price tag of $73,210, then the BMW X2 20i M Sport at $75,900, and the Mercedes-Benz GLA 250 4Matic sits at the top at $79,700.
Our test vehicle has also been fitted with an upgraded Sonos 3D surround sound system and sunroof for an additional $3900.
As one would expect for a top model, the S line is well-equipped and includes electric and heated front seats, leather upholstery and high-end technology throughout, which includes a 10.1-inch touchscreen multimedia system, a 12.3-inch digital instrument cluster, satellite navigation, wireless Apple CarPlay, wired Android Auto, Audi Connect app with over-the-air updates, four USB-C ports, a 12-volt socket and a wireless charging pad.
Practical features include keyless entry and start, adaptive LED headlights, a frameless auto-dimming rearview mirror, rain-sensing wipers, a powered tailgate (with gesture control) and a park assist feature.
It's features list mostly mirrors that of its rivals, but it does miss out on ventilated front seats.
Lexus says final price and specification for the new RZ will be confirmed closer to its local arrival in the first part of next year. But as a guide, the current entry-level RZ450e in Luxury spec costs around $120,000 before on-road costs. Go for the full-fat Sports Luxury and you can add $10,000 for a $130K MSRP.
Let’s take an educated guess and add a not outrageous five per cent price increase for this update which would bump the new RZ500e (to be offered in Luxury and Sports Luxury grades) past a $125K entry point and move the new RZ550e F Sport flagship close to $140K.
If that was the case, rivals will include the Audi Q8 e-tron (from $153,984), BMW iX (from $136,900), Genesis GV70 Electrified Signature ($125,858) and Polestar 3 (from $118,420).
Worth noting you could buy two examples of the Tesla Model Y Dual motor Long Range ($68,900) for the same money.
In this part of the market it’s fair to expect a healthy list of included features and the RZ doesn’t disappoint.
Aside from the performance and safety tech we’ll get to shortly, standard specification highlights include a 14-inch multimedia touchscreen, a digital instrument display, a dimmable panoramic roof, 14-colour ambient cabin lighting, 20-inch alloy rims, LED headlights, cornering lights and a 360-degree camera system.
There’s also synthetic leather trim (synthetic suede on F Sport), built-in nav, power-adjustable heated front seats, multi-zone climate control and more. Not bad.
Our test vehicle keeps it's tried and tested 2.0-litre four-cylinder turbo-petrol engine, which produces 132kW of power and 320Nm of torque. Those outputs are slightly less than most of its nearest rivals and it sports a slower sprint time of 7.8 seconds.
The Q3 Sportback is a quattro, which means it has an all-wheel drive and it boasts a silky-smooth seven-speed auto transmission.
While it doesn't induce strong sports-car vibes on road, it’s not a car you'd ever have the audacity to call slow.
Both versions of the new RZ are powered by dual permanent magnet synchronous motors, one in the front, one at the back, each producing 167kW and 269Nm.
Total output is 280kW for the 500e (up from 230kW in the 450e), with a little more juice released from the motor combination for the 550e at 300kW.
A single-speed transmission sends drive to both axles and the RZ550e F Sport features ‘Interactive Manual Drive’ designed to give the sensation of manual gear shifts in a BEV. More on that in the Driving section.
The official combined fuel cycle figure is 8.2L/100km, but the real-world usage is at 8.6L after doing a mix of open-road and urban driving. Considering the lack of restraint shown for really giving this model a real 'go' on the open-road, the fuel usage is respectable.
Based on the official combined fuel cycle and 60L fuel tank, you should see a theoretical driving range of up to 732km, which is good for any longer road trips you might want to tackle.
The RZ500e and 550e are fitted with a 77kWh lithium-ion battery delivering a claimed (WLTP) range of 450 and 456km, respectively.
Claimed 10-80 per cent charge time, using its full 150kW DC fast-charge capacity, is 30 minutes or a handy three and half hours at maximum 22kW AC capacity.
Energy consumption on the combined (urban/extra-urban) cycle is 18.2kWh/100km (WLTP) for the RZ500e and 18.4 for the 550e.
Over several hundred kilometres of B-road and freeway running as well as pottering through slow-speed villages on the launch we saw an average of 19.3kWh/100km in the 500e and 20.1 in the 550e F Sport, which is pretty handy.
And the (very) good news is two AC charging cables, installation of a home charger and three years’ complimentary charging across the Chargefox network is included. Nice!
The power delivery for the Q3 Sportback S line model is effortless. It doesn’t have the thrum or burbling of a turbo, but the power is well and truly there whenever you need it. So, while not as ‘powerful’ as some of its rivals, you don’t feel like you’re missing out.
The low and wide stance of the Q3 Sportback translates to nimble and direct handling – you can take corners at speed with almost no roll and the steering sits within the goldilocks zone for firmness.
A downside is the cabin noise, which is fairly loud with road and wind no matter the speed – but you don't have to raise your voice. You'd expect a bit of noise with the big wheels, but you always hope for more refinement at this grade level.
The Q3 isn’t difficult to park, but it does take a moment to get your bearings on how it fits a space, as it’s bigger than you might expect. The 360-degree camera is super clear, which takes out a lot of the guesswork.
The car feels like an extension of you as a driver which elevates the overall on-road experience despite not being a performance model. This would be well-suited for a driver who wants great on-road performance without feeling like someone who is in a mid-life crisis.
It’s a hefty machine at 2.1 tonnes, but Lexus says the RZ550e F Sport will accelerate from 0-100km/h in 4.4 seconds, with the 500e only marginally slower at 4.6sec.
In straight-line acceleration Lexus says front to rear power distribution varies between 60:40 to 100 per cent rear to suppress pitching and “produce a more direct acceleration feel”.
And the RZ is indeed quick. Apply your right foot at just about any speed and the car rockets ahead with satisfying enthusiasm.
The F Sport’s ‘manual’ mode allows you to shift through eight virtual ‘ratios’. Press the ‘M’ button on the console and bingo, you have slim steering wheel-mounted paddles to control them.
At anything above a light accelerator application you’ll feel a jolt on upshifts, but it’s rather unpleasant. Sure, you want some sense of a gear change, but you feel it in your core. Check out the video review to see how much it can shake you around.
A synthetic soundtrack Lexus refers to as the “BEV Sound”, vaguely echoing an internal combustion engine, is fed through the F- Sport’s audio system and it feels thin and brittle to our ears. Again, check out the audio sample in our video review to see if you agree.
You’ll hear the ‘revs’ rising on up and downshifts but there’s no physical accompaniment with the latter as far as we could sense.
Suspension is strut front with double wishbones at the rear and it’s been given a thorough revision in terms of dampers, springs and bushings in both the 500e and 550e F Sport, with the latter copping some additional fine-tuning in each of those areas.
We sampled 500e and 550e F Sport versions of the RZ on the launch drive in Southern Portugal, covering mostly Aussie-compliant roads with lots of bumps and ruts to deal with. And despite its hefty kerb weight the car copes with these imperfections well.
There’s also been some extra attention paid to body rigidity in this updated RZ, specifically reinforcement of upper sections of the nose and around the boot to keep the car more torsionally stiff.
In cornering the drive distribution ratio is between 80:20 front to rear to RWD-only, according to vehicle speed and steering angle, and the car feels composed and predictable.
The F Sport features the steer-by-wire system, using a yoke rather than a conventional steering wheel and the ratio is such that all you have to do is turn the wheel slightly to generate a response.
It’s smooth and progressive but quick at the same time. You soon become used to it.
While it's unusual to see a small yoke in your hands rather than a steering wheel, it means you have an uninterrupted view through to the instruments, which is a nice side benefit.
However, much like the Infiniti Q50’s system before it, there is no mechanical link between the driver’s hands and front wheels. Steering inputs are relayed by electric signals from a torque actuator to a control actuator.
So, while Lexus says “important feedback filters through without the unpleasant vibration effects of a mechanical connection”, and that’s true, by definition there is no road feel and the wheel feels numb from that point-of-view. Worth noting the mechanically steered 500e feels much the same.
Tyres are Dunlop SP Sport Maxx (235/50 fr - 255/45 rr) which grip hard and remain relatively comfy despite their short sidewall running on 20-inch rims.
One price you pay for the steer-by-wire system’s set-up is a substantial turning circle, so be ready for that.
Braking is by ventilated discs all around, which work nicely, and when you’re not using the manual mode in F Sport the steering wheel paddles allow movement through four levels of regenerative braking.
The most aggressive setting will slow you quite markedly but not to the level of ‘single-pedal’ operation.
Additional sound insulation includes an under-seat rear floor silencer, soundproofing in the door trims as well liberal use of damping sheets, foam, silencer pads, insulators and extra seals. And the car is super-quiet, even for an EV.
In terms of miscellaneous observations, the front seats on both versions remained comfortable and supportive over long stints behind the wheel (and yoke!).
Slow speed manoeuvring is assisted by a 360-degree overhead camera view with a translucent trace of the car in the centre, as well as a high-quality reversing camera. Vision across the car and through to the back is good, anyway, but the extra tech helps in the slow speed stuff.
There’s also a sensible mix of physical dials and on-screen controls and the touchscreen menus are easy to use. Especially handy when you’re racing to the function that turns off the intensely annoying over-speed warning.
The Q3 has a maximum five-star ANCAP safety rating from testing done in 2018 and it scored highly with the adult protection score sitting at 95 per cent, child protection score at 88 per cent, and safety assist systems score at 85 per cent, and it's vulnerable road sits at 76 per cent.
Unfortunately, the Q3 only features six airbags, which is fairly low for this day and age and misses out on a front centre airbag.
Standard safety equipment is robust and includes blind-spot monitoring, driver attention alert, a First Aid kit, a warning triangle, tyre pressure monitoring, rear cross-traffic alert, lane keeping aid, lane departure alert, traffic sign recognition, intelligent seatbelt warning, adaptive cruise control with stop/go function, park assist, a 360-degree camera and front and rear parking sensors.
There are two ISOFIX child seat mounts and three top tethers but two seats will fit best.
The Q3 has AEB and forward collision warning with car, pedestrian and cyclist detection. This system is operational from 5-85km/h (and up to 250km/h for car detection).
The RZ received a maximum five-star ANCAP assessment in 2022 scoring 80 per cent-plus results in all areas.
As you’d expect, a full suite of driver-assistance tech is onboard including auto emergency braking (AEB) with car-to-car junction, crossing and head-on functionality as well as pedestrian and cyclist detection, adaptive cruise, lane keeping assist, lane-departure warning, blind-spot monitoring, rear cross-traffic alert, driver fatigue monitoring, tyre pressure monitoring and more.
The airbag count runs to nine, including side curtains, knee bags for the driver and front passenger as well as a front centre airbag. There’s also multi-collision brake to minimise the chances of subsequent impacts after an initial crash and an auto emergency call function.
There are three top tethers for child restraints across the second row with ISOFIX anchors in the two outer positions. That’s a comprehensive safety package.
The Q3 comes with a five-year/unlimited-km warranty, which is a normal term for the class.
You can pre-purchase a five-year servicing plan, which costs $3330 overall, or $666 per service which is competitive for the premium segment.
Servicing intervals are reasonable at every 12 months or 15,000km whichever occurs first.
The RZ is covered by Lexus Australia’s five-year/unlimited km warranty and there’s an eight-year/160,000km warranty on the drive battery, which is in line with the RZ’s key competitors.
Recommended maintenance interval is 12 months/15,000km, which is relatively brief for an EV.
Capped-price servicing is yet to be confirmed, but for reference the outgoing 450e runs to $395 for each workshop visit up to a maximum of five years/75,000km. That’s sharp pricing in this part of the market.
The RZ also qualifies its owner for ‘Platinum Electrified’ benefits under the ‘Lexus Encore’ ownership program. That means everything from access to “exclusive offers and events” to a complimentary service loan car, five years’ roadside assistance, valet parking at selected locations, airport lounge access and (heaps) more, including the charging benefits mentioned earlier. Hard to argue with that.