Audi picking a German 'Big Three' fight with new Q5
By James Cleary · 30 Jul 2025
Audi’s third-generation Q5 and sporty SQ5 hit showrooms next month and have been priced aggressively and specified generously with the aim of putting a dent in the market share of its premium German mid-size SUV rivals, the BMW X3 and Mercedes GLC, while getting closer to the lower-priced, segment-leading Lexus NX.Starting at $81,000, before on-road costs, the all-new Q5 undercuts the BMW X3 (from $86,100) and Mercedes-Benz GLC (from $89,000) while dipping down to put some pressure on the Lexus NX (from $63,400).The new Q5 line-up starts with the entry-grade TFSI, powered by a 2.0-litre, four-cylinder turbo-petrol engine sending 150kW/340Nm to the front wheels via a seven-speed dual-clutch auto transmission. That combination receives mild-hybrid support from an integrated powertrain generator tipping in up to 18kW/230Nm and allowing low-speed pure EV propulsion for short distances.A redesigned interior features an 11.9-inch digital dash display and 14.5-inch multimedia screen with a 10.9-inch passenger touchscreen available as part of a ‘Tech pro’ option package.Other standard features include 19-inch alloy rims, matrix LED headlights, leather-appointed upholstery, power front seats (with heating and memory), three-zone climate control, colour ambient lighting, a leather-trimmed steering wheel and eight-speaker audio (including digital radio).The TDI quattro ($87,600 BOC) offers an almost identical standard specification but swaps out the TFSI’s petrol engine for a 2.0-litre, four-cylinder, turbo-diesel unit, this time sending 150kW/400Nm to all four wheels via the same seven-speed auto and an on-demand version of Audi’s quattro AWD system. It also features the mild-hybrid support system.Next, the TDI quattro Sport ($94,100 BOC) retains the same diesel powertrain but adds 20-inch alloys, a panoramic tinted glass sunroof, sports front seats, a three-spoke leather sports steering wheel, black headlining, stainless steel pedal covers and more.Step into the even more focused world of the SQ5 and power is bumped up to a 3.0-litre, turbo-petrol V6 engine pushing 270kW/550Nm through the seven-speed auto and quattro AWD system. With a revised suspension tune and 4.5-second 0-100km/h acceleration Audi positions it as the fastest SQ5 so far.From local launch, a limited SQ5 edition one model ($106,400 BOC) will be available for a “short period”, featuring gloss-black roof rails, mirror caps and window trims, anthracite grey badges, dark tailpipe trims and privacy glass. It also boasts 20-inch Audi Sport black metallic alloy rims and red brake calipers.Inside, the leather-appointed seats feature S embossing and a flat-top and bottom multi-function steering wheel is added.The ongoing SQ5 variant ($122,400 BOC) retains the edition one’s powertrain but switches its black elements for bright and brushed metal pieces while adding acoustic front door glass, premium diamond-stitched leather trim, additional massage and ventilation functions for the front seats, dynamic ambient interior lighting, a head-up display, top-shelf Bang & Olufsen audio and more.Underpinned by Audi’s ‘Premium Platform Combustion’ (PPC) platform the new Q5/SQ5 features progressive rate steering and ‘Frequency Selective’ dampers (using a valve to adjust damping force based on the vibration frequency) are standard across the line-up.Safety is comprehensive with a full ADAS suite including auto emergency braking (AEB), adaptive cruise control, speed sign recognition, ‘Audi Side Assist’, park assist plus and a 360-degree camera view standard. The airbag count runs to nine.Audi Australia has confirmed these five initial models will be joined by Q5 and SQ5 Sportback variants later this year.2026 Audi Q5 / SQ5