Audi Q3 News

The premium small car category (starting under $80K) is an interesting one because there are many cars that might not necessarily be cross-shopped, but in one way or another they end up being compared to one another.Our 2026 CarsGuide Car of the Year awards category shortlist saw entrants from Audi, BMW, Cupra, Renault, Smart, Subaru and Volvo. The vehicles range from small petrol hatches all the way to small electric SUVs.Now we’re at the pointy end and it’s time to whittle it down to a winner. First up are the two runners up in alphabetical order, then the category winner.This small SUV from Audi is an oldie but a goodie and that’s how it has ended up as a runner up for CarsGuide’s best small premium car.CarsGuide reviewers love how the Q3, despite its age, still presents well with a stunning exterior design, while the driving experience is elegant, yet fun.“I think it’s such a neatly executed package, it’s hard to pick faults in that car,” said CarsGuide Deputy Editor James Cleary.However there is a new-generation model set to launch locally in early 2026 that could potentially become the new benchmark for the segment.While this French small electric SUV hasn’t stormed up the sales charts like some of its competitors, it’s a dark horse with charming driving dynamics and a stunning interior design.CarsGuide Deputy News Editor Tom White, who had one for a three-month long-term loan early in 2025, noted it’s a car that moves the Renault brand forward in Australia.In fact, he said that everyone who sat in this tester asked if it was a Kia, which he believes is a massive compliment to the Megane E-Tech.The few things holding this car back are the mediocre AC charging rate, plus the Australian-specification car does miss out on things like connected services, which are offered overseas. Thankfully Renault has committed to addressing the latter with an update in 2026.Although it’s been a couple of years now since the current-generation X1 launched in Australia, it still stands out as a segment benchmark, therefore making it a clear choice for CarsGuide’s best premium small car of 2026.“Previously the Q3 was my favourite in that category, I think the X1 does move the game forward,” said CarsGuide Deputy News Editor Tom White.It not only offers class-leading petrol-powered variants, but the availability of electric powertrains in the same body style. All of them have stellar driving dynamics and high-tech interiors.Additionally, besides its compact exterior dimensions, the X1’s clever interior packaging and available storage space makes it almost feel like a mid-sized SUV. You can see why this is now the best-selling BMW in Australia.

The small car segment, especially on the premium and luxury end of the spectrum, has been very tumultuous over the last few years with hatchback and sedan sales plummeting, while SUV sales have climbed astronomically.In order to combat this, as part of our ongoing 2026 CarsGuide Car of the Year awards, we’ve combined small premium passenger cars and SUVs into this segment.It’s worth noting that each shortlisted small premium car mentioned below is inclusive of the entire line-up, though its entry price must be under $80,000 before on-road costs for this particular category.The following is a rundown of our top 10 sub-$80K small cars in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Note Mercedes-Benz's current A-Class, CLA and GLA were ineligible as they were unavailable for review.While many brands are fleeing this segment of the car market, this German small hatch and sedan is still offered in Australia in a wide range of trim levels and variants. Beyond the normal A3 variants, there’s the sporty S3 and the fire-breathing RS3.It notably made this shortlist due to the latter which is still offered with an iconic five-cylinder engine. However, we do wish it made just a bit more noise like the older models did.Beyond this, CarsGuide reviewers praised the A3 line-up for its capable and engaging driving dynamics, as well as its luxuriously equipped and premium-presenting interior.While the A3 hatch and sedan may be newer, the Audi Q3 small SUV has been soldiering on for a couple of years now without any major updates.The current model is reaching the end of its lifecycle and is set to be replaced by a new-generation model during 2026.Despite this, CarsGuide reviewers liked how the Q3’s exterior design is ageing, even in the polarising Sportback body style, plus the on-road manners are both elegant and fun.The new-generation version of the BMW 1 Series hatchback launched locally late in 2024, offering everything from everyday commuter trims to the M135 xDrive hot hatch.CarsGuide reviewers were impressed with its driving dynamics and outright performance, though fuel efficiency took a hit as a result.Additionally we liked the new and modern front-row layout, however the exterior design, especially at the front, likely isn’t for everyone.The X1 small SUV is the most popular BMW in Australia currently and for good reason.It launched locally in new-generation guise in 2022 to popular fanfare, then the all-electric iX1 variants joined the line-up in 2023, cementing its status as a benchmark small SUV.CarsGuide reviewers praised X1/iX1’s on-road manners, as well as the modern and high-tech exterior and interior designs. However, common European quibbles like tyre roar and suspension bumps can intrude into the cabin.The X2 is a swoopy ‘coupe’ SUV counterpart to the X1 small SUV and still notably offers both petrol and electric (iX2) powertrain options.While its exterior design is polarising and not for everyone, CarsGuide reviewers appreciated how polished the drivetrains feel from behind the wheel. The X2/iX2 is also affordable when compared to premium rivals from the likes of Mercedes-Benz and Volvo.The few dislikes were centred around the X2 M35i xDrive’s firm ride due to its large (and thankfully optional) 21-inch alloy wheels, as well as the slight reduction in boot capacity over the X1/iX1.This spicy Spanish small crossover SUV is the clear front-runner for Cupra in Australia. Arriving in 2022, the Formentor is offered in a range of variants from warm to hot, plus even a plug-in hybrid (PHEV) offering.CarsGuide reviewers appreciated the lifted hatchback looks and the smile-inducing driving dynamics, however some found the multimedia system to be a little finicky and the ride a little too far on the firm side.An oft-forgotten entrant in the small SUV segment, this quirky French electric SUV impresses with its sleek design, maximised interior space and reactive driving feel.There is currently only one trim level of the Megane E-Tech offered in Australia, the Techno EV60, and it’s limited by its 7.4kW maximum AC charging rate, plus the lack of features like connected services that are available overseas.A huge step away from the iconic Fortwo of the early ‘00s and ‘10s, the Smart #3 is the brand’s largest car in Australia to date.With unique looks and a premium cabin feel, the #3 impresses though the driver-assist features can be a little overbearing and the panoramic glass sunroof has no sunshade.More sore points are the average warranty coverage of five years or 150,000km, as well as the hefty servicing costs for an electric vehicle.While a number of these shortlisted vehicles are high-tech or electrified offerings, the Subaru WRX stands out as a purist sports car.Still featuring a turbocharged four-cylinder boxer engine and a manual transmission in certain trim levels, the WRX is offered in sedan and wagon body styles.CarsGuide reviewers praised the WRX’s dynamism, practicality and even value when compared to rivals with similar amounts of power. However, the WRX Sportswagon only comes with a continuously variable transmission (CVT) and doesn’t look as sporty as the standard WRX sedan.This vibrant and quirky Volvo electric SUV stands out on the road thanks to its stunning exterior design with boxy proportions.The interior also stands out, but sometimes not in the best of ways. CarsGuide reviewers found too many of the key features are tucked into menus on the central touchscreen, plus the lack of a proper instrument cluster was grating.

Audi’s all-new, third-generation Q3 is on schedule for arrival in Australia in the second quarter of this year with pricing and specification now confirmed for the premium compact SUV.New from-the-ground-up, the 2026 Q3 brings a broader model range with a higher standard specification in conventional SUV and swoopy Sportback versions.Aside from a fresh design inside and out, the new Q3 features multiple updated powertrain options, upgraded lighting tech, improved multimedia and additional advanced safety features.The improved specification comes with a roughly seven per cent increase in cost-of-entry with the addition of Launch Edition variants on selected models, according to Audi "in limited numbers, only available while stocks last".  2026 Audi Q3 price Australia:2026 Audi Q3 engine/powertrain and efficiency:The new Q3 is offered with three powertrain choices.The TFSI 110kW is powered by a newly-developed 1.5-litre, four-cylinder, mild-hybrid, turbo-petrol engine sending (as the name implies) 110kW/250Nm to the front wheels through a seven-speed, dual-clutch auto transmission.The TFSI quattro 150kW features a 2.0L turbo-petrol four producing 150kW/320Nm and the top-shelf TFSI quattro 195kW boasts a higher-output 195kW/400Nm version of the 2.0-litre engine, both sending drive to all four wheels a seven-speed, dual-clutch auto.Claimed combined cycle fuel use for the TFSI 110kW is 6.6-6.0L/100km rising to 8.4-7.8L/100km for the TFSI quattro 150kW with a 55-litre fuel tank in both models. The TFSI quattro 190kW’s official figure rises to 9.0-8.5L/100km, the top model featuring a 60-litre tank. All three require a minimum 95 RON ‘premium’ fuel.Maximum braked trailer towing capacity is 2000kg for the 110kW and 150kW models, rising to 2100kg for the 190kW version.2026 Audi Q3 standard features: Alloy wheels11.9-inch digital instrument display12.8-inch multimedia touchscreenAdaptive cruise control360-degree camera viewAdaptive LED headlightsLeather-appointed upholstery10-speaker audioAmbient interior lightingAdaptive dampers (150kW/190kW)Panoramic glass sunroof (190kW)Head-up display (190kW)Climate control air-conditioningLeather-trimmed steering wheelDigital radioKeyless entry and startReversing camera2026 Audi Q3 optional features: Launch Edition - TFSI 110kW (SUV +$5400 - Sportback +$4400)  / TFSI quattro 150kW (+$4400): S line exterior styling for the 110kW SUV, 19-inch Audi Sport alloy wheels, metallic paint and red brake callipers, black exterior styling package, sound actuator and adaptive dampers.2026 Audi Q3 colours: (TBC for Australia - Euro options listed)Standard:Arkona WhiteOptional:Mythos Black MetallicNavarra Blue MetallicGlacier White MetallicProgressive Red MetallicTambora Grey MetallicMalpelo Blue MetallicSage Green MetallicArrow Grey Pearl EffectDaytona Grey Pearl Effect2026 Audi Q3 safety:The Audi Q3 scored a maximum five-star Euro NCAP rating from assessment in 2025.  Adult occupant protection - 87 per centChild occupant protection - 86 per centVulnerable road user protection - 80 per centSafety assist - 78 per cent 2026 Audi Q3 warranty and servicing:The Q3 is covered by Audi Australia’s five-year/unlimited kilometre warranty (with roadside-assist included) and twelve-year cover against bodywork corrosion perforation. Five-year service plans are available for Q3 models as is the ‘Audi Advantage’ program that allows owners to purchase two-year packages to extend servicing, warranty, and roadside assistance. Pricing hasn't been detailed yet.2026 Audi Q3 dimensions:Overall length for the Audi Q3 (SUV and Sportback) is 4531mm, width is 1859mm and height is 1601mm (Sportback 1440mm) with a 2681mm wheelbase. Boot space with rear seat up is 488L (VDA) in both variants, expanding to 1386L with rear seat folded in the SUV and 1289L in the Sportback. 

Why Audi says its sales model will keep it ahead of new rivals

Australians have a "strange love" for big wheels and option packs, according to Audi executives - and Ingolstadt is taking notice.

Audi has revealed the new-generation version of its Q3 Sportback ‘coupe’ SUV ahead of its Australian arrival in early 2026.

One of Audi’s most popular models is getting a modern makeover.The big news is the Audi Q3 isn’t going all-electric, instead it will use petrol power with mild hybrid assistance and plug-in hybrid grunt.Audi isn’t giving up on diesel either with an oil-burner variant confirmed for Europe.The base mild-hybrid petrol, which is a likely starter for Australia, uses a 1.5-litre turbocharged petrol engine with mild-hybrid tech and produces 110kW.This is joined by purely petrol motors that make 150kW and 320Nm and a 2.0-litre unit that makes 195kW and 400Nm paired with all-wheel drive.A 110kW/360Nm diesel engine caps off the internal combustion engine variants.Sitting at the top of the range is the plug-in hybrid version, which pairs a petrol engine with an electric motor for a total of 100kW/400Nm.This is combined with a sizeable 25.7kWh battery, which can deliver an electric-only driving range of 120km as tested under the benchmark WLTP cycle.It can be charged at up to 50kW via a DC fast charger that can top up the battery from 10 to 80 per cent in under half an hour.Audi claims it has done substantial work on the suspension to improve the driving dynamics and a smoother commute.The Q3 sports a fresh face, with a big bold grille featuring lattice work design, big side intakes and sleek headlights with pixel LED styling. This is added to broader shoulders and a sleek side profile and curvy panel creases.The Q3 will be rammed with active driver aids and hi-tech features, including a 12.8-inch multimedia display and a 11.9-inch digital driver display. Included in the new safety tech is the controversial driver attention warning, which uses a camera to watch the driver for signs of drowsiness or a lack of concentration. In other brands this tech goes off for menial reasons such as looking at the rear-view mirror or squinting into the sunlight.The new Q3 will launch in Europe later this year, with an Australian arrival likely for the first half of 2026.

If you’ve seen a lot of BMWs on the road lately, there is a reason for it.The Bavarian giant is officially Australia’s favourite premium automotive brand.According to 2024 sales figures, BMW capped the year with 26,341 sales. That represents a modest 0.6 per cent bump over its 2023 results, or in actual figures, BMW sold 157 more cars last year than the year before.For years BMW was the number two marque in Australia behind archrival Mercedes-Benz. But that shifted a few years ago and now BMW is the dominant force in the premium segment.Mercedes splits its sales between two business units — Mercedes-Benz Cars and Mercedes-Benz Vans. Given none of its premium rivals offer commercial vans or utes, we will focus on cars.BMW was the 14th best-selling brand overall in 2024, wedged between Volkswagen in 13th and Suzuki in 15th.But how did it do so well last year? A couple of factors — SUVs and EVs.Sixty two per cent of BMW sales were for its ‘X’ SUV range. And the leader of that pack was the X1 small SUV with 4536 sales. Despite these solid numbers, it was beaten by the Audi Q3 for sales in the small SUV segment.The X3 was BMW’s next best seller, capturing high sales in runout ahead of the new-gen model arriving, and X5 was third best, while the X7 and 7 Series saloon had their best sales results ever.BMW’s EV sales were also a strong point, with just under 30 per cent of its total sales coming from electric cars. The iX1, i4, iX2 and iX3 made up the bulk of deliveries.Mercedes-Benz recorded 19,989 units in 2024, which was down by 17.8 per cent compared with 2023. Despite having a broader model range, the Stuttgart-based manufacturer saw double-digit sales declines for some of its most popular models including the C-Class (-26%), CLA (-32.7%), A-Class (-16.5%), GLC (-19.3%) and GLE (-41.4%).Benz fared better with some of its EV range, with the EQE medium SUV up by more than 200 per cent to 759 sales and the EQS large SUV also in positive territory (+126.7%). The GLA small SUV was the brand’s best seller, recording 3103 sales, up a healthy 65 per cent year on year.Coming third in the premium car sales race was Audi with 15,333, which represented a 19.5 per cent drop on its 2023 result.The decline can in part be put down to the delayed launch of the Q4 e-tron electric SUV, which now arrives in February, as well as some ageing model lines like the A4 and Q5 mid sizers. Both will be replaced in 2025 with new-gen models.The end of sales for the A1 hatch and TT sports car have also likely had an impact.Like Mercedes, Audi’s sales were a mixed bag. The Q3 was the brand’s star performer, capturing 5497 sales (+23.3%) to top the premium small SUV segment.The only other Audi model in positive sales territory was, interestingly, the A6 (+12%). Large sedans aren’t super popular these days so it’s a great result for a solid offering.On the flipside, the Q7 and A3 went backwards, but the SUV is about to get a big refresh in February, and the A3 has just been updated, too, so they should pick up in 2025.Aside from BMW, Porsche was the only premium brand to achieve sales growth in 2024, with 7029 units up 16.1 per cent. Every model line except the Panamera (-5.7%) and Taycan (-47.3%) saw double or triple-digit growth.Other premium contenders Lexus (13,642, -10.2%), Genesis (1400, -26.9%) and Volvo (8898, -20%) all had sales drops in 2024.

The cost of electric cars is coming down at last and it’s happening fast, too, with big brands slashing prices.

Audi has given most of its range a safety and features updated for its 2024 model year, with just about the entire Audi range now coming with features like adaptive cruise control as standard.