Audi SQ2 vs Denza B5

What's the difference?

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. 

Denza has made a huge statement with the B5 and for the most part the hype is deserved. It packs an incredible amount of luxury and tech inside and out which is even more surprising given the impressive asking price.

There are only a few flaws like the busy ride, over-the-top body roll and the occasional infotainment quirk. Hopefully these can be fixed with future over-the-air software updates.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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.  

It’s worth calling out straight away that the Denza B5 is essentially an SUV version of the BYD Shark 6 as the two share underpinnings, but it’s much more luxurious and blingy.

Externally it has a big, boxy and bluff design that helps it stand out on the road. It looks even tougher when the suspension is in its lifted mode.

I particularly like the front fascia with the big headlights and the prominent Denza badge on the grille, but there are some strange body creases around the side.

While the boxy looks make the B5 stand out, it’s not necessarily unique. There are elements that are reminiscent of the Land Rover Defender, plus many angles look similar to the GWM Tank 300.

Inside is where the luxe is dialled to the max. There are so many soft touches around the cabin that it makes a lovely place to spend time.

Additionally there is a lot of high-quality physical switchgear which is surprising given how prominent the large 15.6-inch central touchscreen is.

Lastly, I like how substantial many of the finishes are. There are large grab handles on either side of the dashboard which you do need to use to hoist yourself into the cabin, plus chunky interior door handle pulls that are satisfying to use.

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.

Many Chinese cars have lots of bling but lack actual substance when it comes to comfort and usability. This is where the Denza differs.

Take the driver’s seat, for example. In a number of Chinese cars they look plush and comfy, but in reality they are firm after longer drives and lack adjustability.

The B5’s driver’s seat, however, is very comfortable, offering almost limitless adjustment, plus heating, ventilation and even a massage function as standard. The latter is great for longer road trips.

Ahead of the driver the steering wheel has plenty of adjustment, allowing people of different heights and statures to get comfortable behind the wheel. There are also lots of physical buttons and switches that have a satisfying click when pressed.

The digital instrument cluster is high-resolution and clear, and there's a number of different informative pages that you can cycle through. It’s nice to have this level of customisation.

Moving across, the aforementioned 15.6-inch touchscreen multimedia system dominates the dashboard. If you’re familiar with the user interface in other BYD vehicles, it’s virtually identical in the B5.

It’s very easy to navigate around and if you do get lost there are a number of shortcut buttons at the bottom of the screen that can either take you back home or to other key functions.

One of my favourite features about the screen is the swipe-down control centre menu. You can customise it to have key shortcut functions. It’s much better than having to dig through countless submenus.

It’s clear Denza still has a few kinks to iron out with the translations from Chinese to English as some don’t make sense. Denza will likely sort this with future software updates.

As standard there is wireless Apple CarPlay and Android Auto and it takes up the full screen when connected. It’s a stunning set-up, though reaching the far left-hand side of the screen from the driver’s seat can be a little tricky on the move.

As I touched on earlier, there is a lot of physical switchgear around the cabin which is helpful as you don’t need to solely rely on the touchscreen for key functions. The piano key buttons for the drive and EV/HEV modes are particularly handy, plus the rising gear shift lever is premium-feeling.

In terms of storage up front, there are up to two 50W wireless chargers (depending on the variant you opt for) with ventilation, two cupholders with adjustable depths, some shallow storage under the centre console, plus a fridge/hotbox under the centre armrest.

Moving to the second row there is plenty of space for at least two adults to sit comfortably. Pushing it to three may be a little tight with shoulder room, plus the centre seat is raised compared to the outboard ones. It’s worth noting though that there is a flat floor so you don’t need to fight for foot space.

Second-row amenities include chunky grab handles for easy ingress and egress, air vents on the back of the centre console, as well as heated and ventilated outboard seats in the top-spec Leopard trim. It’s properly luxe.

At the back the tailgate is side-hinged which can be problematic if you reverse into a carpark as you need to allow for space for it to open up. It has a soft-close function which is handy as you don’t need to slam it shut.

There’s 470L of boot space with the rear seats upright, expanding to around 1000L when folded. It’s a decent amount of space and is square with a very minimal load lip.

Amenities include a 12V socket, a wide array of hooks and nets, as well as a small storage space under the boot floor for the charging cables.

Lastly the B5 comes with a full-size spare wheel mounted on the tailgate. This is becoming increasingly rare in electrified vehicles and is very handy if you have a puncture.

The 2026 Denza B5 is offered in two trim levels – entry-level and the top-spec Leopard. Pricing for the former is $74,990 before on-road costs, while the latter is $79,990 before on-road costs.

This is very competitive and it undercuts many top-selling rivals like the diesel-powered Toyota Prado and Ford Everest by a significant margin if you want similar levels of specification.

It’s worth noting however, the GWM Tank 300 PHEV, which is the B5’s closest rival in terms of powertrains, is even cheaper at $59,990 drive-away.

As a base, the B5 is loaded with standard equipment. You get 18-inch alloy wheels, adaptive LED headlights, a glass panoramic sunroof, 12.3-inch digital instrument cluster, 15.6-inch touchscreen multimedia system, 16-speaker Devialet sound system, leather upholstery, heated and ventilated front seats with a massage function, plus heated outboard rear seats.

If this isn’t enough, the B5 Leopard gets larger 20-inch alloy wheels, adaptive hydraulic suspension, a digital rear-view mirror, a second wireless phone charger, Nappa leather upholstery and ventilated outboard rear seats.

This amount of standard equipment is wild, especially because the asking price is firmly below $100K.

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.

Power comes from plug-in hybrid set-up combining dual electric motors (one on each axle) and a 1.5-litre turbocharged four-cylinder petrol engine.

It’s a similar set-up to the BYD Shark 6, but the B5 has more power. Total system outputs are a meaty 400kW and 760Nm, which is good for a claimed 0-100km/h sprint in just 4.8 seconds.

Power is sent to all four wheels and for added peace of mind off-road there are front and rear mechanical diff locks as standard, plus a wide range of drive and terrain modes, including a low-range mode.

Backing this up is a 3000kg braked towing capacity and up to 600kg of payload.

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.

Feeding the electric motors is a 31.8kWh lithium iron phosphate (LFP) Blade battery which Denza claims to allow the B5 to travel up to 100km on electric power alone, according to NEDC testing.

There’s also vehicle-to-load (V2L) capability with 6.6kW output through the charging port using an adapter. This allows you to use the battery charge to power appliances. It’s handy if you go camping, for example.

The battery can be AC charged at rates up to 11kW or DC fast-charged at rates up to 100kW.

There’s also an 83L fuel tank. Denza claims the B5 has a total range of 975km, according to NEDC testing.

Fuel consumption depends on whether or not you charge up the battery. Denza claims you’ll use 1.9L/100km from 100 to 25 per cent battery charge and 9.5L/100km under 25 per cent battery charge, both according to NEDC testing. Regardless, this is better than similarly sized diesel-powered SUVs.

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.  

Behind the wheel the Denza B5 primarily operates as an electric vehicle (EV) first up, meaning it’s largely quiet inside the cabin when driving around normally.

Once the charge starts to drop, the petrol engine typically switches on to top up the battery. It largely acts as a generator and a lot of the time you can’t actually tell whether it’s on or off.

In some cases where you floor the throttle or go up a steep hill, the engine revs can flare and that’s when it makes its presence known in the cabin.

When the battery charge gets down low enough and you gun it, the petrol engine can directly power the front wheels. This is rare though because the car purposefully leaves at least 25 per cent battery charge in reserve.

With 400kW and 760Nm thanks to the combination of the dual electric motors and the 1.5-litre turbo-petrol engine, the B5 absolutely hauls. The peppy feel is largely due to the instantaneous torque the electric motors provide.

However, in the standard drive mode there is a noticeable input lag from when you push the accelerator a bit harder and when the car actually accelerates. This is reduced in the sport drive mode.

Despite the juicy outputs, the B5 does feel its weight. When you accelerate hard it pitches back extensively, much like the Jeep Grand Cherokee Trackhawk. This never failed to make me smile though.

It’s surprising as we only drove the top-spec B5 Leopard on this launch and it comes fitted with the DiSus-P adaptive hydraulic suspension system which has a self-levelling function.

In the bends the B5 gets a considerable amount of body roll regardless of the drive mode. This is common for many Chinese cars as they typically prioritise floaty comfort-oriented tunes over a firmer and more dynamic-feeling ride.

Despite this, once it leans over it’ll comfortably hold and grip, largely thanks to the chunky 275/55 R20 Pirelli Scorpion tyres that come standard on the top-spec Leopard trim.

Like many body-on-frame vehicles, the ride gets busy on harsher roads with more frequent bumps. As a passenger you can get jostled about in the cabin.

The steering, while direct enough, can have a vague and artificial feeling. Depending on the drive mode it either artificially adds or reduces the resistance.

Unlike the related BYD Shark 6, the B5 gets a low-range mode which uses a clutch pack on the rear electric motor to allow for more controlled low-speed crawling, plus front and rear mechanical diff locks. This can make a big difference once the going gets really tough.

Additionally, the DiSus-P hydraulic suspension allows for a total of 140mm of travel. In the highest position there’s a wading depth of up to 790mm.

Lastly in terms of noise, vibration and harshness (NVH), the B5 is a very quiet car to drive. As I mentioned above, the electric-first nature automatically makes this a quiet car.

There is very little road and wind noise. This is surprising as the B5 is essentially a 3.0-tonne box on wheels. It seems Denza has put a lot of effort into sound insulation.

The Denza B5 received a five-star ANCAP safety rating based on testing conducted in 2025.

As standard there are 11 airbags, autonomous emergency braking (AEB), blind-spot monitoring, front and rear cross-traffic alert, adaptive cruise control, a driver attention monitor, front and rear parking sensors, plus a surround-view camera.

While a number of the active safety systems operate well and only intervene when required, some are intrusive and over the top. The worst offender is the driver attention monitor which struggles to detect your eyes with sunglasses on, plus only requires a brief glance at the touchscreen to get it saying, “Tiredness detected, please take a rest”.

Thankfully you can turn this off using the touchscreen with the handy swipe-down control centre menu, but it needs to be done every time you drive the car.

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.  

Denza B5 owners are covered by a six-year, 150,000km warranty, whereas the high-voltage battery is covered for eight years or 160,000km. Owners also receive three years of roadside assistance.

This warranty length is fairly standard in the mainstream segment, but in the luxury segment it pushes past the current five-year benchmark.

Logbook servicing is required every 12 months or 20,000km, whichever comes first. The first five years of servicing totals $3542, which averages out to just over $700 per service. This does seem like a lot, but in the premium space this is rather competitive, especially once you consider both the electric and combustion components are being serviced.

There are currently seven Denza dealers around Australia and it plans to have a total of 20 by the end of 2026. It’s also planning to allow certain BYD dealers to service Denza cars.