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.
MG needs a win, and the MG4 Urban may be the right car at the right time to give the Chinese brand a major boost.
It has been a rough few years for MG, with sales in decline for the past two years, which has seen it tumble from Australia’s favourite Chinese car maker to a distant fourth place behind BYD, GWM and Chery.
Part of that could be because of its rapid expansion, both in terms of its total number of models but also the size of the vehicles it’s offering. The larger QS SUV and U9 ute have both received underwhelming responses from the car-buying public.
So, MG has returned to its roots - small, affordable cars. The MG4 Urban, not to be confused with the MG4 Hatch, is its new price-leading electric car and the company’s new management hopes it leads a sales revival.
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.
The MG4 Urban is not only the right car at the right time, perfectly catering to buyers looking to avoid rising petrol prices, it’s also a welcome return-to-form for MG as a brand.
MG is seemingly at its best when it sticks to small cars. It has traditionally excelled with the MG3 and ZS, smaller, more affordable products that keep expectations in check and can win over customers looking for the best bang-for-their-buck rather than simply the best car.
That’s not to say the MG4 Urban isn’t a good car. It offers tremendous value for money, excellent interior space and drives nicely, so anyone who has been considering making the switch to an EV should seriously consider this new arrival.
Note: CarsGuide attended this event as a guest of the manufacturer, with 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.
MG says the design inspiration for the MG4 Urban came from the $100,000 Cyberster. While there are certainly a lot of differences between that roadster and this hatchback, the air-intakes and wheel design are indeed very similar. And I guess the badge is the same too, so there’s that…
But, comparing it to the Cyberster misses the point. What makes the MG4 Urban’s design more interesting is the bits you can’t see. While it shares the same name as the MG4 Hatch, this car has almost nothing in common with it. That’s because this new MG4 Urban is based on the brand’s newer EV underpinnings that debuted on the MGS5 EV.
That means the MG4 Urban is front-wheel drive, whereas the hatch is rear-wheel drive, and because of the way the battery is integrated into the chassis, it creates not only a bigger hatchback but also one with a different shape.
The Urban is more ‘cab forward’ (to use design parlance) meaning a shorter bonnet, which creates more cabin room. It also means there is more boot space because the powertrain is located up front.
MG does a good job with cabin presentation too. It’s another step forward for the brand, improving the overall level of fit and finish from its earlier models, to create a cabin that looks modern and doesn’t feel like it has been built to a price.
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.
As I just mentioned, the cabin is bigger than the other MG4, which creates good space in both seating rows.
Up front they’ve placed the gear selector on the steering column to create space for more storage in the centre of the car. That means there’s plenty of shelves, cubbies and cup holders to take care of your small (and not so small) items, spread across the cabin.
As for the boot, the switch to a front motor and a smaller rear suspension means a 382-litre boot with all seats up and 1266L if you drop the back seats. Plus there’s a 98L underfloor storage spot, in place of a spare wheel (with a puncture repair kit included instead).
The design of the key controls are simple and easy to use, with a digital display for the instruments ahead of the driver and a 12.8-inch multimedia screen in the centre of the dashboard.
Navigating the menus is relatively straightforward but in a victory for user-friendliness, MG has listened to feedback (and incoming Chinese government regulations) and added some physical controls. There are buttons and a dial for the air-conditioning system and a volume knob for the sound system.
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.
MG made its reputation in Australia by selling some of the most-affordable models on the market, filling the hole left by mainstream brands like Toyota, Hyundai and Mazda as they increased the entry-level prices in their respective line-ups. Something MG itself tried with the HS, QS and U9, as it expanded beyond the once-popular MG3, MG5 and ZS.
The MG4 Urban is a return to form in that sense for MG, with this new small car starting at just $31,990 drive-away. For context, the MG4 Hatch starts at $37,990 drive-away, so this is a much cheaper proposition. That starting price is for the MG4 Urban Standard Range, the Extended Range variant is priced from $34,990 drive-away.
That pricing does not feel accidental from MG Australia, despite what they may suggest when pressed. That’s because the new BYD Atto 2, the direct rival to the Urban, starts at $31,990 plus on-road costs. Even so, BYD has the last laugh, because it offers both the BYD Atto 1, which starts at $23,990, and the Dolphin, which is priced from $29,990 - to undercut the MG4 Urban, even if neither are considered direct competitors.
In terms of specification, both the Standard Range and Extended Range have the same equipment with the exception of the obvious - a bigger battery, and more power from the motor.
Standard equipment highlights include 17-inch alloy wheels, LED headlights and tail-lights, a leather-wrapped steering wheel, PVC seat upholstery, heated front seats, Bluetooth connectivity with wireless Apple CarPlay and Android Auto, in-built navigation and a six-speaker stereo.
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.
The MG4 Urban Standard Range is powered by a 110kW/250Nm electric motor that drives the front-wheels via a single-speed transmission. The Extended Range has slightly more performance, 118kW and 250Nm, but aside from that they are the same motor.
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 biggest difference between the two MG4 Urban variants is the battery. The Standard Range has a 43kWh battery good for 316km of driving between charging, while the Extended Range gets a bigger 54kWh battery to make it capable of up to 405km.
We didn’t drive the car long enough to get a clear indication of real-world efficiency and range, but it performed well during our drive in suburban Sydney. The steady stop-start traffic gave the battery its best chance to perform well and the early indications are its range is close to claim, at least under the right circumstances. We’ll have to reserve definitive judgement until we’ve had a longer test drive.
What MG was very keen to highlight are the cost savings of buying an EV at a time of sky-high petrol prices. The company made a point that using off-peak electricity, which can be had for just 6c per kW from certain providers, means you can replenish the battery of the MG4 Urban Standard for just $3.44.
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.
What really stood out about the MG4 Hatch is its rear-motor, rear-wheel-drive layout, which made it a very dynamic and almost sporty car. In my 2023 review I called it “a genuinely enjoyable small car to drive".
The MG4 Urban doesn’t quite leave the same impression. Again, we had only a brief and (appropriately) urban test drive around Sydney’s beachside suburbs, but the MG4 Urban proved competent rather than commendable.
But, let’s be honest, unless you’re looking for driving thrills in the wrong place (affordable, city-focused hatchbacks) the MG4 Urban does the job it is required to do. It’s as nice as any other mainstream hatch to drive from Point A to Point B.
The ride could be a little softer and more compliant, with the suspension feeling too firm at times, but with its electric motor it’s a quiet and relaxed driving experience. The electric motor provides adequate performance too, certainly more torque in less time than you’ll get in a petrol-powered hatch.
Curiously, MG Australia executives said the MG4 Urban was locally evaluated and tuned but could only offer a vague mention of ‘holistic’ changes to better suit it to local conditions, rather than pointing to any specific Australia-developed changes to the suspension, steering or powertrain.
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).
It may be small and cheap, but that doesn’t mean MG has cut corners on safety. The MG4 Urban comes equipped with the MG Pilot and a suite of active safety features, including adaptive cruise control, autonomous emergency braking, lane keep assist, blind spot monitoring, driver attention monitoring and speed limit notification.
The latter two are the most evident, as they provide a steady soundtrack of beeps as you drive along. Take your eyes off the road for more than a few seconds as the driver attention system fires up, while the speed sign recognition gets busy in Australia’s ever-changing speed limits.
While MG has undoubtedly improved the sensitivity of some of these systems compared to other models, they are still more active than rival products. Perhaps more concerning, the speed limit recognition repeatedly beeped to tell me I was in a ‘25km/h’ zone, which is simply not a recognised speed limit on Sydney roads.
Like so many other brands, MG needs to further refine these active safety systems in order to make the driving experience more relaxed and less distracting.
MG says the MG4 Urban has secured a five-star rating from Euro NCAP, which is expected to be carried over by ANCAP.
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 MG4 Urban is covered by the brand’s 10-year/250,000km warranty, as long as you service it at an official MG service centre. If you don’t get your car serviced with the company directly, your warranty reverts to seven-year/unlimited km coverage.
Servicing intervals are every 12 months or 25,000km and will cost you $1366 over the first five years. The cheapest visit is just $149 but the major service, after four years, is a pricey $472, which does push against the idea that EVs are cheaper to service due to less moving parts.