What's the difference?
The new Range Rover Velar P400e Dynamic HSE, or P400e for short, is the first Velar offered with a plug-in hybrid powertrain. In theory, this should make it a solid contender for those wanting a luxury SUV that produces a smaller and greener footprint.
It’s not as big as its Range Rover siblings, so if you’re after a sleeker Rangie that can do some 'mild' adventuring on the weekends while still looking flash during the week, this may be the one you’re looking for.
It faces competition from the BMW X5, Volvo XC90 and… at a stretch, the Porsche Cayenne. I’ve spent a week with the mid-level P400e Velar to see how it stacks up for everyday use.
Replacing a popular model is fraught with danger. Existing customers will tell you they love it, while focus groups of non-customers will tell you why they hate it and sometimes carmakers get caught trying to appease both groups.
Sometimes they’ll make it too big or change too much in the search for more sales and ultimately end up removing the elements that made it popular in the first place.
Which is why Audi has been extra careful with some subtle evolution for this new-generation Q3 SUV and Sportback. This isn’t just a popular model for Audi Australia, it has been the best-selling model for the German brand for more than five years, so getting it wrong would be a disaster.
The Range Rover Velar P400e looks damn sexy and is large enough to house your family comfortably while still being easy to manoeuvre around town.
But I’m not a fan of these luxury brands forcing you to pay extra for what should be standard features when you’re at this grade level and price point. This is a model I’d pay close attention to in terms of the optional trims required to maintain a high-end feel.
But the powertrain works quite well here and it has pleasant on-road manners.
So is this new Q3 good enough to remain Audi’s number one choice? In a word, yes.
Audi has resisted the temptation that some brands fall into by making too many changes to a proven sales performer. This new Q3 isn’t radically different from the old Q3, but it has improved in almost every way.
It isn’t different enough to widely expand its appeal to a new wave of customers, but there’s no reason it won’t remain Audi’s most popular choice for the foreseeable future.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Land Rover hasn’t updated the exterior looks of the Velar and for good reason. It is almost flawless in how sleek and sexy it looks. It hovers between its larger Ranger Rover siblings and the more nimble-looking Discovery Sport.
There is still a distinctly ‘Range Rover’ vibe but it looks more agile and fun than its bigger siblings. But while its external looks are beautiful, the cabin loses me.
It’s even more pared back now than the pre-facelifted model and while the minimalistic style will appeal to some it doesn’t tick the luxury factor box for me.
There are too many plain and empty spaces in the dashboard and doors. The multimedia system has been updated to the cool 11.4-inch floating-effect screen but all the buttons and dials are gone. So, there’s even less going on and it makes you 100 per cent reliant on the screen.
And funnily enough, the grey knit fabric and synthetic material that’s used in the upholstery and trims is an optional extra and replaces Windsor leather. The knit-fabric adds some warmth but the black synthetic stuff is awful to touch or clean and reminds me too much of neoprene-style wetsuit material.
The large panoramic sunroof keeps the cabin feeling bright and cheery when it's open, though.
The brief to the designers was seemingly pretty simple - don’t mess with a good thing.
According to the company, they want it to be recognisable as an Audi from 100m away, but at the same time, it makes sense not to make any radical changes to a design that is clearly a hit with buyers.
There’s still a new grille, which is slightly larger, while the daytime running lights (DRLs) are now mounted high, on the top corners of the front fascia.
Audi prides itself on its lights and the Q3 features multi-segment DRLS, with dynamic light effects, plus the rear badge lights up red with the tail-lights are turned on.
Digital matrix LEDs are available as an option on the quattro grades, which is a first for such a small Audi. While based on the technology already deployed in the bigger, more expensive Audi models, this is an updated system with micro LED matrix capabilities that are better able to light up the road ahead without blinding cars ahead or oncoming.
One very noticeable element to the design of this new Q3 is the size - which hasn’t really changed. Audi has resisted the temptation that so many brands have to upsize a compact model and has instead retained the same size that buyers clearly find appealing. It is slightly longer, approximately 4cm, but is still unmistakably a Q3 in looks and size.
Inside the Q3 is a different story, with the designers clearly empowered to create more change. The elements remain similar, but there have been more dramatic changes compared to the exterior to keep the Q3 looking contemporary and luxurious.
For example, there are still two large screens, just like the old model, but the virtual cockpit and multimedia screen are integrated into the dashboard together and more prominently, moving higher up the centre fascia.
It works well, as the interior looks and feels premium, and very much an Audi, albeit on a smaller scale.
To cap it off there are four interior colour packages to choose from, plus four different choices for the inlays, including two real wood options and an aluminium trim.
Practicality on a whole is pretty good in the Velar and that comes down mostly to the space provided for each occupant and the high-end tech.
Up front, there is a lot of head- and legroom for my 168cm height and even when you have a co-pilot you’re not jockeying for elbow room.
The seats are very comfortable as they’re well-cushioned and feature excellent lumbar support. I miss a seat heat function on colder days but you can easily do a long trip in the Velar and not feel too fatigued.
The 214mm ground clearance has made it an easy SUV to get in and out of, for me and my seven-year old. Annoyingly, though, some of the doors don't close properly unless you slam them.
The individual storage is a bit less than you might expect as there's not a lot of centre console storage for little items but you still get a small glove box and middle console, two cupholders, two drink bottle holders and a phone cubby up front.
The back seat offers enough space for me to be comfortable but I did have a comment from my dad, who is 183cm, that it was a smidge squishy for him.
The seats are comfortable and amenities are good with two USB-C ports, a 12-volt socket, directional air vents, map pockets and a fold-down armrest with two cupholders. There are storage bins but they're very shallow.
Because of the sleek rear shaping, the boot space is smaller than most of its rivals at 625L when all seats are in use. It’s large enough for my gear and you should still be able to stack luggage easily for a road trip.
The technology on offer is pretty darn good. The multimedia system takes a while to get used to but once you do, it's an easy enough system to get around but not having any buttons/dials means you tend to look at it more than I like while on the go.
Unlike the Disco Sport I was just in, which features the same system, there have been no issues with connectivity with my iPhone with the Bluetooth or wireless Apple CarPlay. There’s also Android Auto and the built-in satellite navigation is top-notch.
I've already mentioned the rear charging options but up front you're spoiled for choice with a USB-A port, three USB-C ports and a wireless charging pad.
The biggest change to the interior is the technology, with a new multimedia interface with new, larger tiles as well as new ‘Control Unit’ for the key driving functions.
The ‘Virtual Cockpit’ display is much simpler, with a nice, clean look, plus the option to have the satellite image on the screen, whether you’re in navigation or not. The multimedia screen is a good size (12.8 inches) and the menus are easy to navigate. The decision not to have physical controls for the climate control is disappointing, but thankfully there is a volume/on-off dial for the sound system.
The most notable difference is the so-called ‘control unit’ that integrates the indicators, wipers and gear selector on a single ‘bar’ mounted to the steering column. It’s another example of modern cars reinventing something we’ve all become accustomed to, but after a day of driving it quickly becomes second nature to adapt to the slightly different controls.
While it may be the same size, Audi has managed to find more room inside, particularly the rear, by redesigning the door pockets and sculpting out the seat backs. It’s still not the roomiest cabin, but the rear seats will be fine for younger families, couples and singles.
Another plus is the 40:20:40 split/fold rear seats for maximum practicality and adaptability, while all three have child seat anchor points (although if you do have three small children, I wouldn’t be recommending an SUV this size).
As for the boot, because Audi only measures to the top of the seats, it measures 488L in both the SUV and Sportback variants, so you’re not missing out on day-to-day practicality with the sportier-looking roof. However, if you drop the rear seats the cargo capacity expands to 1386L in the SUV but only 1289L in the Sportback.
The Velar is offered in three variants with a choice of four powertrains spread between them. The model I'm testing is the plug-in hybrid mid-level HSE Dynamic in P400e form, which sits right behind the flagship Autobiography.
The P400e is priced from $143,508, before on-road costs, and sits close to the middle of the pack compared to its rivals.
The Volvo XC90 Recharge Ultimate PHEV comes in as the most affordable at $128,990 MSRP, then the BMW X5 xDrive50e M Sport PHEV at $149,900 MSRP.
Even with our model's optioned extras, the Porsche Cayenne S E-Hybrid PHEV sits a country-mile above them all at $178,300 MSRP (thus it's a 'stretch').
Our test model has a few optioned extras, including a 'Dynamic Handling Pack' for $1750, a black contrast roof ($1420), ash veneer trim ($930), rear privacy glass ($890), 21-inch diamond turned alloys ($780), non-leather premium steering wheel ($750), black synthetic leather upholstery ($700), cabin lighting ($540), rear seat remote levers ($300) and 'Terrain Response' ($430).
That all equates to an extra $8490 and brings the total before on-roads costs price tag to $151,565.
Standard technology features that are included are an 11.4-inch touchscreen multimedia system, 12.3-inch digital instrument cluster, built-in satellite navigation, wireless connectivity for Apple CarPlay, wired Android Auto, Amazon Alexa app, dual-zone climate control, a wireless charging pad, five USB-C ports, one USB-A port, two 12-volt sockets and a Meridian sound system with digital radio.
Other features include pixel LED headlights, panoramic sunroof, keyless-entry, push-button start, rear fog lights, powered front seats, run-flat tyres, a powered boot lid and a tyre pressure monitoring system.
Annoyingly, a lot of luxury features have to be added at additional cost and given the price tag it's odd there are no heat or ventilation functions for the seats, no heat function for the steering wheel, no climate control for the rear or even a head-up display.
So, it feels a bit bare on features once you start to compare the Velar to some of its rivals, like the well-specified and more affordable Volvo.
A key to the popularity of the Q3 is the variety of choices available to customers. By offering a mixture of variants at different price points and with different levels of performance expands the appeal of the Q3 to as many potential buyers as possible. To that end there are no less than 10 variants to choose from, and that’s just for now, with more likely to join in the future.
At this stage the range includes both SUV and Sportback body styles, the choice of a 110kW, 150kW or 195kW engine with front- or all-wheel drive (or quattro, as Audi calls it). While still not confirmed, both a plug-in hybrid and a high-performance RS Q3 are both likely additions sometime in the future.
Starting with the 110kW model, standard equipment includes 18-inch alloy wheels, adaptive LED headlights, ambient interior lighting, keyless entry and ignition, leather-appointed upholstery and a 10-speaker sound system. The 110kW SUV is priced from $61,600 and the Sportback from $64,600.
Moving up to the 150kW quattro variant adds adaptive dampers, which the 195kW models also get, as well as 19-inch alloy wheels, and there’s an optional premium Sonos system for the more powerful models and a panoramic glass sunroof and a head-up display as part of a $4400 option package. Pricing for the 150kW begins at $70,200 for the SUV and $72,700 for the Sportback, while the 195kW is priced from $81,900 (SUV) and $84,400 (Sportback).
There’s also a Launch Edition available which adds between $5400 and $4400 to the price (depending on variant), but includes the S line exterior styling package, black exterior highlights, metallic paint, red brake callipers, a sound actuator and adaptive dampers. As the name implies, these are only available for launch of the new model, so will only be produced for the first two months.
It should also be noted that standard 110kW models won’t arrive until mid-year, once the factory in Europe is done producing the Launch Edition variants.
The Range Rover Velar P400e's plug-in hybrid powertrain combines a 2.0-litre four-cylinder turbo-petrol engine with an electric motor to deliver 297kW of power and 640Nm of torque.
The Velar features an eight-speed auto transmission and is an AWD. With that optioned Terrain Response feature, it can do some mild off-road adventuring or tackle a trip to the ski-fields with relative ease.
As mentioned above, there are three powertrains to choose from initially, with talk of a plug-in hybrid and hi-po RS Q3 just that (talk) for now.
The entry-level SUV and Sportback get a new 1.5-litre four-cylinder mild-hybrid, turbocharged petrol engine, which makes 110kW/250Nm and sends all that performance to the road via the front wheels through a seven-speed, dual-clutch automatic transmission.
Next up is the TFSI 150kW quattro, which is a bigger 2.0L turbo-petrol four-cylinder, producing (you guessed it) 150kW and 320Nm. It also has a seven-speed dual clutch but also unsurprisingly has a quattro, aka all-wheel drive.
Finally there’s the TFSI 195kW quattro, which has the same engine but tuned to make 195kW and 400Nm, also with the seven-speed, dual-clutch auto and all-wheel drive.
This is naturally the quickest Q3, at least until the RS Q3 arrives, taking just 5.7 seconds to accelerate 0-100km/h, compared to 9.1 seconds for the 110kW and 7.1 seconds for the 150kW.
The official combined fuel-cycle consumption figure is 2.2L/100km and my real-world usage came out at 6.0L/100km after doing mostly open-road trips with some urban stuff thrown in.
I have charged it to full twice with a few (small) charging moments scattered in between as that’s been realistic for life this week.
Claimed pure electric driving range is 69km but expect closer to 50km in the real-world.
Based on my real-world consumption and the 69L fuel tank, expect a theoretical driving range of 1150km.
The only draw back with a PHEV is the charging element as you get the best economy if you charge it to full every time you drive, and that's not always realistic!
The P400e has a Type 2 CCS charging port, so you can hook it up to a fast charger. On a 50kW system you can go from 0-80 per cent in 30 minutes and on a 7.0kW system, you can go from 0-100 per cent in two-hours and 12-minutes.
On a standard domestic socket, expect to leave on overnight for a 0-100 per cent fill.
Land Rover recommends a minimum 95 RON premium unleaded petrol for the Velar.
While it may only be a mild hybrid, Audi has done its best to make the TFSI 110kW as fuel efficient as possible. To that end, in addition to the hybrid help this new 1.5-litre engine also features cylinder-on-demand.
The result is a claimed combined cycle fuel use figure of 5.7L/100km for the entry-level model.
Naturally the more powerful engines require more petrol. The 150kW models are rated at 7.3L/100km, while the 195kW has a claimed 8.1L/100km.
It’s worth noting that all three engines require a minimum 95 RON ‘premium’ fuel, which will only add to the cost at the pump in these times of high prices.
The 110KW/150kW models are fitted with a 55-litre fuel tank, while there is a bigger 60-litre tank for 195kW. That means theoretical driving ranges of approximately 960km for the 110kW models and just over 740km for the 150kW and 195kW offerings.
The P400e has a deep well of power to dip into and fantastic pick up when you need to overtake or get up to speed.
Like other plug-in hybrids I’ve sampled from Land Rover there's a little lag sometimes when you accelerate from a full stop but it’s not as pronounced in this model as others.
The back brakes seem to hold a couple seconds longer than they should and if you accelerate as you would in any other car, there is a ker-clunk sound and you shift forward in your seat until they release.
This was most noticeable in stop-start city traffic and to be fair might just be a quirk on our test car and not on the model as a whole.
The switch between the electric and petrol components is mostly smooth and the cabin is refined because it’s so quiet. Pretty much no external noise makes its way inside.
I did a trip with my father-in-law this week and he said riding in the back seat was smooth, comfortable and very quiet. In fact, he fell asleep not long after we left! A high compliment, indeed.
The wide windows and higher ride have ensure excellent visibility but you only get a reversing camera. Yes, it’s great quality and clear but a 360-degree view system should come standard on a large SUV like this, especially considering its price tag. That being said, the P400e is still pretty easy to park.
While it may not be an RS model or a more dynamic sedan, part of the price premium you pay for an Audi is a more polished driving experience.
With that in mind, what Audi calls ‘Progressive steering’ (which is a variable ratio steering rack) is now standard across the range. This decision was driven by a desire to make the Q3 feel ‘more hatch-like’ to drive, being more responsive to driver inputs.
It certainly felt quite nice to drive at the launch, where we drove across a wide variety of conditions, including long stretches on winding mountain roads. The 110kW Launch Edition was enjoyable to drive in these conditions, even if the other two options offer a sportier driving experience with their extra power and all-wheel drive.
It should be noted again, we only drove Q3s fitted with adaptive dampers as those are included on the Launch Edition, so we can’t tell you how the true entry-level TFSI 110kW model rides and handles.
One minor concern was there were some rattles in one of the three cars we tested, centred around the dashboard and front doors. It’s notable because we have experienced similar potential build-quality issues with Volkswagen and Skoda products recently. This raises some questions about an area Volkswagen Group products have traditionally excelled in.
Having said that, it was only a problem in one of the three cars we drove, so it could be an isolated incident. But it’s something we will have to keep an eye and ear open to in future test drives.
The plug-in hybrid variant is not rated with ANCAP yet but features a good number of safety features, like blind-spot monitoring, driver attention alert, tyre pressure monitoring, rear collision warning, forward collision warning, AEB, DRLs, rear cross-traffic alert, lane keeping aid, traffic sign recognition, intelligent seatbelt warning, adaptive cruise control, reversing camera, as well as front and rear parking sensors.
It does miss out on lane departure warning and only has six airbags, which is low for a large SUV but all of the other safety tech seems well-tuned and not intrusive on everyday driving.
For any families, the Velar has ISOFIX mounts on the rear outboard seats plus three top tethers. You might get three seats installed if they’re not too big but two will fit best.
Audi claims this is the safest Q3 ever, with more safety equipment than before to ensure it meets modern customer demands.
There’s a 360-degree camera setup, reversing camera, adaptive cruise control and a host of other active safety features. But perhaps more importantly than just having these systems, they are locally tested and calibrated for local conditions.
This has quickly become an area where the premium brands are separating themselves from the mainstream. In the case of the Q3 we found that the lane keeping assist and adaptive cruise control worked better than your average mainstream model, so the local testing appears to have paid off.
Another safety feature worth mentioning is the new parking assistance system, which now includes ‘reversing assist’. This new technology can remember the last 50m of your trip and reverse backwards without your help. There’s also ‘trained assist’, which can learn up to five specific parking situations, that you can program and save. So, if you have a particular driveway or parking spot you can teach the car once and it can park itself in future.
The Q3 comes equipped with enough safety to score a maximum five-star rating from Euro NCAP and ANCAP. However, in a confusing twist, this is based on testing done to the 2025 protocols, even though the Q3 has only gone on sale in 2026. So future five-star ANCAP models will have been tested to a theoretically higher standard, which is something to consider when comparing models from other brands.
The Range Rover Velar comes with a five-year/unlimited km warranty and the battery is covered by an eight-year/ 160,000km warranty, which is a usual term for the class now.
There is a five-year capped-price servicing program which costs a flat $2100, or $420 per service, and is more affordable than a pay-as-you-go option.
Servicing intervals are very reasonable at every 12 months or 20,400km, whichever occurs first.
You also get five years roadside assistance through Assist Australia as a part of your servicing plan.
The Q3 is covered by Audi Australia’s standard five-year/unlimited kilometre warranty. This includes five years of roadside assistance too.
There is a standard five-year servicing plan for $3300, which is the same as the outgoing model, with servicing required every 12 months or 15,000km, whichever comes first.
Audi has an expansive, nationwide dealer network befitting its place as an established sales leader in the premium space.