PROS ›› Great performance, exhaust growl, sporty handling, well-priced CONS ›› Cheap interior, ADAS issues, fixed dampers on Edition One The Audi SQ5 has long been the smart pick for buyers who want pace without drifting into full-blown excess. It sits neatly below the RS models from Audi, and avoids the chest-thumping theatrics of BMW M and Mercedes-Benz AMG rivals. Now, there’s a new one. Audi lifted the veil on the third-generation Q5 in late 2024, quickly adding an SQ5 in both regular SUV and Sportback guises to the range. It brings with it a new mild-hybrid powertrain shared with other Audi models, like the S5, and should have all the ingredients to be a superb performer. Still, the question hangs in the air. The latest Q5 has quietly dialed back some of the cabin richness that once defined it. So even with sharper performance and improved dynamics, does the higher-end SQ5 do enough to feel like the one worth having? QUICK FACTS › Model:2026 Audi SQ5 Edition One› Starting Price:AU$106,400 ($75,300) as tested› Dimensions:185.7 L x 74.5 W x 65.3 in H (4,717 x 1,893 x 1,869 mm)› Curb Weight:2,115 kg (4,662 lbs) › Powertrain:3.0-liter turbo V6 mild-hybrid› Output:362 hp (270 kW) / 406 lb-ft (550 Nm)› 0-62 mph4.5 seconds (0-100 km/h)› Transmission:Seven-speed S tronic dual-clutch automatic› Efficiency:10.7 l/100 km (21.9 US mpg) as tested› On Sale:Now SWIPE What Models Are Available? Photos Audi Australia In Australia, Audi has launched the 2026 SQ6 in two distinctive guises. The entry-level model we tested is labeled the Edition One and serves as a cut-price version, helping introduce the new SQ5 to the market. Priced from AU$106,400 ($75,300), it seems like quite a good deal, particularly given that the base Q5 diesel we recently tested was optioned up to AU$104,000 ($73,600). It’s also well-priced when compared to the competition. For example, the BMW X3 M50 starts at AU$129,600 ($91,700), and the Mercedes-AMG GLC43 is available from AU$136,900 ($96,900). Those seeking additional features can also order the SQ5 in standard guise, priced from AU$122,400 ($86,600). By comparison, Audi SQ5 prices start at $65,400 and top out at $67,300 before options in the US. To achieve the lower starting price of the Edition One, Audi has cut back on the features. For example, it does without the pricey model’s 21-inch wheels, more premium leather seats, 16-speaker Bang & Olufsen stereo, and head-up display. A Familiar Interior Photos Brad Anderson/Carscoops There’s not a great deal to distinguish the cabin of the SQ5 Edition One from the interior of a less-powerful Q5 model. This isn’t a surprise, but it is disappointing. The most significant change is the fitment of Audi’s latest three-spoke sport steering wheel, featuring a flat bottom and top. There are also new paddle shifters, a slew of surfaces finished in artificial leather, and brushed aluminum inlays, including around the transmission tunnel. Audi has also added new S-branded sports seats, which are much nicer than those found on lesser Q5 models, offering a good level of bolstering in addition to adjustable lumbar support. The seats of the higher-end SQ5 also include ventilation and massage functions, which the Edition One sadly misses out on. Photos Brad Anderson/Carscoops Housed in the beautiful curved panel on the dashboard is an 11.9-inch digital instrument cluster and a 14.5-inch infotainment screen. For an additional AU$5,700 ($4,000) for the Tech Pro Package, a passenger screen can be added alongside customizable LED lighting signatures, a heated steering wheel, and heated rear seats. As the infotainment screen runs on the Android Automotive operating system, it performs brilliantly, is quick and easy to use, and includes wireless Apple CarPlay and Android Auto functionality. Does the SQ5’s cabin feel fitting of a vehicle with a six-figure price tag? No, it doesn’t. As we’ve mentioned in other recent Audi reviews, the quality of its interiors has taken a backward step in recent years. There’s too much piano black, too much cheap plastic, and too many hard, scratchy surfaces. On the plus side, even the standard eight-speaker audio system of the SQ5 Edition One is good, as is the configurable ambient lighting, and the all-around comfort in the front row. As we discovered in the regular Q5, headroom in the rear is limited. Cargo capacity sits at 520 liters (18.3 cubic feet) or 1,473 liters (52 cubic feet) when the rear seats are folded flat. Thankfully, many of our qualms about the SQ5’s interior fade into (almost…) insignificance when you start driving it. The Drive Photos Brad Anderson/Carscoops As mentioned, it has the same power as several other new Audi models using the new Premium Platform Combustion (PPC) architecture, including the S5 and S5 Avant. This includes a 3.0-liter turbocharged petrol V6 working alongside an 18 kW electric motor and a 1.7 kWh battery pack. Previous iterations of the SQ5 had been sold with both petrol and diesel engines, but the latter has been ditched for this latest generation. All up, the new SQ5 is rated at 270 kW (362 hp) between 5,500 and 6,300 rpm and 550 Nm (406 lb-ft) of torque from 1,700 to 4,000 rpm. The electric motor also delivers 18 kW (24 hp) and 230 Nm (236 lb-ft). The sound coming from the engine bay isn’t particularly sonorous, but the exhaust note is much more exciting than the latest S5. For whatever reason, Audi has tuned the SQ5’s exhaust to deliver loads of cracks and pops when driven in one of the sportier modes, yet the S5 misses out. That’s bad news for S5 buyers, but it’s good for those looking to buy the SQ5, as it makes it that little more exciting and engaging to drive. Performance is great. Although the SQ5 looks a lot larger than the new S5 sedan and S5 Avant, it’s only a little heavier and boasts the same 4.5-second sprint to 100 km/h (62 mph). Engaging launch control in Dynamic is as easy as it gets, and the SQ5 rockets off the line. The power, combined with the relatively soft suspension, causes it to squat quite heavily under acceleration, and when changing gears, it’ll also momentarily rock back and forth. Coupled to the mild-hybrid V6 is a seven-speed dual-clutch transmission, which sends power to all four wheels. Throttle response is excellent, and the mild-hybrid system helps to smooth out any potential turbo lag. It’s very fun to drive fast, striking a good balance between sporty character and luxurious comfort when you want to drive it more sedately, just like the old SQ5 it replaces. The dual-clutch gearbox is mostly good, though the shifts are harsh in Dynamic mode and can be a little rough at low speeds, as is common with transmissions like this. Photos Brad Anderson/Carscoops As standard, the SQ5 Edition One is equipped with passive dampers that offer a good level of stiffness and reassurance through the bends, but without being too harshly sprung. However, the fully-fledged SQ5 model can be optioned with an AU$3,800 ($2,700) adaptive air suspension. While we haven’t experienced this setup in the SQ5, it’s said to make a big difference. The much more compliant and balanced ride was certainly noticeable in the S5 Avant we recently tested, which did have similar adaptive dampers. Steering feel is also excellent, as is on-road handling. The front-end turns quickly and precisely, and the Michelin Pilot Sport 4 SUV tires offer up more than enough grip. However, with a treadwear rating of just 220, they won’t last very long. Audi says the SQ5 can sip just 7.6 l/100 km (30.9 US mpg) over the combined cycle. Achieving that won’t be easy for owners, as we ended up averaging 10.7/100 km (21.9 US mpg), but that included limited highway driving where the powertrain is at its most efficient. ADAS Issues Among the key safety systems are adaptive cruise control with a stop-and-go function, lane departure warning, and rear-cross traffic alert. Sadly, there’s no lane-centering in Australia, which is frankly inexcusable at this price, and something missing from other Audi models as well. We also encountered issues with the adaptive cruise control. As you can see in the photo below, the system would often inadvertently lock onto a slower-moving car in an adjacent lane, rather than the car directly ahead. It would sit here, refusing to pass that car, no matter how slowly it was going. Verdict Photos Brad Anderson/Carscoops The Audi SQ5 is one of those rare SUVs that actually makes driving enjoyable. It suits the parent who still wants something engaging behind the wheel, while keeping the other perfectly happy with a comfortable, efficient way to ferry the kids around. The Edition One’s starting price is very competitive, and while we haven’t driven the more expensive version, it may be difficult to justify the added expense. Are there quicker, cheaper, and more powerful electric SUVs out there? Yes, loads. However, they can’t quite match the thrill of having a powerful V6 under your right foot. And that, for a great number of drivers, still matters a lot. Photos Brad Anderson/Carscoops
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