Audi's each-way bet revealed
By Stephen Ottley · 14 May 2026
Audi wants to have it both ways. The German brand is planning to expand its new Q3 range with both a flagship, high-performance RSQ3 and a more frugal, budget-helping plug-in hybrid.Speaking at the launch of the new Q3 range, which is rolling out with 110kW, 150kW and 195kW variants initially, Audi Australia management have made it clear that more options are on the way.Officially Audi hasn’t confirmed plans for an RSQ3, but Matthew Dale, National Product Manager for Audi Australia, leaves no uncertainty what the local position would be when plans are announced.“ We'd love one tomorrow,” he told CarsGuide. “Definitely put our hand up for one.”While Audi is almost-certain to revive the RS badge for this latest generation Q3, exactly what form that takes remains to be seen. The previous generation was powered by the brand’s iconic five-cylinder turbocharged petrol engine, but Europe’s strict emissions laws have put its future in doubt. That means Audi is likely having to develop a new powertrain for the RSQ3, which will need to balance performance with efficiency and emissions requirements both in Europe and around the world.Given the RS model accounted for up to 15 per cent of total Q3 sales in Australia with the previous generation, the local demand is expected to be high - five-cylinder engine or not. So the most likely scenario is Audi Australia is simply waiting for head office to confirm its existence and timeline before committing publicly.On the flip side, the finishing touches are being made to the arrival of the all-new plug-in hybrid (PHEV) variant of the Q3. Its omission was obvious, as the new Q3 launches at a time of sky-high petrol prices and an increased demand for electric vehicles.Officially the Q3 PHEV is under ‘evaluation’ but all signs point to its arrival in the not-too-distant future.“ The main reason for that is, obviously, the latest generation Q3 we locked in all of our ICE models,” Dale said. “We just want to make sure that, one, the product that's available in Europe is fit for the Australian market and Australian consumer. Two, it's been tested for Australian conditions as well. And three, it’s the latest generation of the product. So it's close to getting to the end of its evaluation and getting a decision, but we just want to make sure that all three of those areas are ticked prior to bringing a product to market.”Asked if he foresees any of these issues holding the PHEV back, Dale was confident the latest model, which reportedly boasts up to 100km of EV-only driving range, will be a good fit for Audi Australia. “No, the big thing is that space is moving so, so quickly with, say, battery technology,” he explained. “Not necessarily the hardware components of the actual PHEV itself, but with battery technology, it's moving so, so fast, and that's something that we've obviously shown in, say, A5 and Q5, is the latest generation products. We've moved from having, say, 30-40km range in a battery pack that is essentially the same size as today, up to closer to 80km of pure EV range. And that shows that, we're using the same hardware size, but the hardware inside and the software has been increased exponentially over that period of time to offer the latest products to Australian consumers, and I think that's where we're looking into to ensure that if we position a vehicle in the market, that we're bringing the latest product to Australia.”The addition of a Q3 PHEV would help expand the appeal of the popular small SUV to people looking to save money at the petrol pump. The recent surge in fuel prices has seen interest in EVs dramatically increase, which is good news for Audi, as it was one of the first luxury brands to make a major commitment to EVs.“ Definitely ,” Dale said. “We've seen, even through our dealer network and our partners that invest in our Audi dealerships, they're basically saying that just inquiry on electric vehicles alone has been astronomical and it's doing quite well. Hopefully we continue that momentum. But yeah, you can see based on, consumables like fuel prices and things like that, where the consumer pivots to alternative solutions and with our broad portfolio of plug-in hybrids and electric vehicles as well, even mild hybrid pluses and mild hybrids that we've got in this car as well, there's quite a broad range of products where consumers can pivot and have broader options.”