2025 Audi SQ5 review: Australian first drive

For those who want a medium SUV with an extra dose of luxury and performance, the Audi SQ5 has been a popular spicy option since we first saw it in Australia back in 2013.

Twelve years on, we've got a new third-generation Audi SQ5 to look at, along with an overhauled regular Q5 range.

While it has always been adept at marrying up refinement, handling, and plentiful straight-line poke from its 3.0-litre V6, there has been a mixture of petrol and diesel power over time.

That formula stays true today, but Audi has now gone straight for petrol with the assistance of a new mild-hybrid system that promises to trim fuel consumption – without getting in the way of driving enjoyment. Power is bumped up to 270kW, while torque goes to 550Nm and combines for a brisk claimed 0–100km/h time of 4.5 seconds.

And for those who want the big boy powertrain without a lot of the extra goodies, Audi's limited-time offering of a pared-back variant will be certainly tempting.

Sitting alongside the regular Q5 – but separated by a big dose of extra mongrel – the Audi SQ5 initially lands in Australia with two trim levels. The entry-level 'Edition One' is slated as a limited-edition run, which keeps the 270kW turbocharged petrol V6, but misses out on a few of the top-shelf trinkets and niceties.

The price is lower at least, at $106,400 plus on-road costs being the asking number proffered by Audi. This gets 20-inch alloy wheels (21s are a $2600 option), matrix LED headlights, LED tail-lights, a blacked-out exterior package, and privacy glass.

On the inside, you've got leather-appointed upholstery closer to what you get in a regular Q5, which are a sportier design and include heating electric adjustment (and manual lumbar adjustment) for the front seats. There's also a sportier steering wheel, stainless steel pedals and – of course – a smattering of S logos and badges.

Infotainment holds steady – with an impressive 14.5-inch central display backed up by an 11.9-inch OLED digital instrument cluster that Audi calls Virtual Cockpit.

Going to the regular full-fat SQ5 doesn't change the 3.0-litre turbocharged petrol V6, which makes 270kW and 550Nm. However, there's plenty more interior specification going on. The sound system grows from eight speakers and 180 watts to 16 speakers, 685 watts and Bang & Olufsen branding.

There are also upgraded USB charging points, a head-up display and colour interior ambient lighting on the inside. The seats get ventilation up front and 'premium leather upholstery' all round, plus electric lumbar adjustment.

Audi's next-generation mild-hybrid 'plus' technology is common to both variants – running through a seven-speed wet dual-clutch automatic transmission to all four wheels.

It's worth noting that the SQ5 gets a sportier tune of the springs and frequency-selective dampers compared to the regular SQ5, while adaptive air suspension is available as an option (but not for Edition One).

For those looking for a spicy four-ringed medium SUV, have a peruse through what is available at Drive Marketplace.

While there have been some minor changes in terms of dimensions, the new Audi SQ5 is mostly carryover. Although, the sharper new look of this generation Q5 suits the aggressive edge of the SQ5 at the same time.

On the inside, space and comfort are on par with other medium SUVs in the segment. And in terms of interior appointments, the right notes are hit here: a meatier steering wheel, quality-feeling sports seats and plenty of nice touches, such as carbon fibre, Dinamica fleece, leather, and piano black plastics.

The interior is certainly dominated by the big array on displays that sit atop the dashboard, both infotainment and driver's display flowing into one another with a thick black border.

Look closer, however, and you'll see some nice and well-executed materials around the dashboard and air vents, and on the doors. It looks and feels very nice, which are two crucial elements to get right at this price point.

The low, flat gear shifter is unobtrusive in the central area, which is flanked by cupholders and has a handy storage area underneath the infotainment display for storing some incidental stuff. There's a wireless charging pad for your phone, as well as twin USB-C power outlets and a 12V plug.

Its front seats are excellent in terms of looks, feel and ergonomics. There's plenty of adjustment available (as one would expect), and plenty of scope for driver and passenger comfort on the long haul.

The second row is spacious enough for family duties, but not overtly capacious at the same time. There is a sliding and reclining function available here, but the amount of space available means you'll likely have the seats permanently in the rearmost position.

You've got air vents and power outlets in the second row of the SQ5 as well, along with nice finishes on the doors and a drop-down armrest with cupholders.

The boot of the SQ5 is reduced in size compared to a regular Audi Q5, from a decent 520 litres to a relatively small 475L. It's a hit in the practicality stakes, and something that needs to be considered for family usage.

Audi's new-generation infotainment system is impressive, both in terms of looks and operation. The main central screen – 14.5 inches in size – is crisp and fast to respond, with a plethora of menus and functions to explore. This screen uses organic light emitting diodes (OLEDs), which can give more contrast and brighter colours, as well as deeper blacks.

I can't say for sure whether all of that is true in this case, but it certainly looks and feels excellent in isolation.

The important functions are well covered here: Apple CarPlay and Android Auto are both wired and wireless, and we've got native navigation and digital radio. The SQ5 gets the upgraded 16-speaker sound system as well, which does give a marked improvement in volume and fidelity.

The infotainment system does also handle climate controls, instead of a range of buttons, which does take a little bit of getting used to. And I would argue this isn't as easy or intuitive to use when on the move, but at least it's not buried within a submenu somewhere.

The digital cluster in front of the driver, which uses OLED technology as well, is as good as the central display. And if that's not enough, you can option up a third display in front of the passenger ($5700 Tech Pro Package).

While the ANCAP crash safety website in Australia is yet to publish results for the Audi SQ5 (or Q5, for that matter), officially, we can see some results on the Europe-based, technically aligned Euro NCAP website.

So while the initial results look good (five stars for Euro NCAP), we will wait until we get the fully ratified results for our local market.

But for those who do want to know, the Audi SQ5 (along with the rest of the Q5 range) got 85 per cent for adult crash protection and 86 per cent for child crash protection in Euro NCAP testing results. Vulnerable road users get 79 per cent, while the onboard safety systems get a 77 per cent score.

While Euro NCAP and ANCAP are technically aligned on testing, we see that similar makes and models get slight variances in results between regions from time to time. So we don't know exactly how the Australian SQ5 will go until we see the results.

No punches are pulled in this regard, and the Audi SQ5 gets all of the safety equipment that one would expect from a premium brand at this high price point.

The performance, presentation and tuning of this technology are done in a way to not interrupt the driver or the driving experience. It's an important element to get right, and not something that all brands can do well.

Adding in some mild hybrid driveline technology to the SQ5 – which importantly doesn't interrupt the driving experience – lets you have your cake and eat it too. A little bit, at least. For a vehicle with 270kW of power available, the claimed fuel consumption figure of 7.6 litres per 100 kilometres looks like a misprint.

Even though the old petrol-powered SQ5 had less power, the lack of hybrid assistance meant fuel consumption was considerably higher, at a still respectable 9.2L/100km. Although, there was a punchy and frugal diesel SQ5 also available with 251kW and 700Nm, which used 7.0L/100km. However, it was much heavier on CO2 emissions, which is a big problem in this day and age.

However, our real-world testing of the SQ5 showed a heavier consumption level of around 9.5L/100km. Take this figure with a grain of salt, because our initial driving was relatively short (over a couple of hours) and on more open roads that didn't allow the hybrid system to do much heavy lifting.

If you're coasting around town, grinding through traffic and sitting at the lights a bit, the hybrid system will likely be able to reduce the fuel consumption noticeably more than what I got.

But at the same time, all bets are off if you've got a heavy foot.

Examples of the Audi SQ5 with the optional air suspension feel the best overall, and it reaffirms the feeling that this SQ5 needs to be a top-range affair as a solid (and compelling) execution of a sporty SUV.

Yes, it’s over $40,000 more expensive than the entry-level front-wheel-drive four-cylinder petrol offering in the regular Q5 range, which is also 50 per cent of the base model's asking price. But, you’re getting something much more capable and comfortable overall, with a solid performance bent.

The optional air suspension costs $3800, but it comes with a clearly tangible benefit for ride quality and smoothness.

There’s a more jiggling firmness to the coil-sprung non-equipped cars, which means it’s not as outrageously smooth as you might expect. And considering the impressive driving decorum you can have from a well-sorted mainstream medium SUV, the air suspension feels like a requisite to really elevate the driving experience of this particular model.

With that option box ticked, you’ve got a smoother experience across rough and broken surfaces, and there is less head-tossing jostle into the cabin over undulating surfaces. 

That means you’re looking at a $125,000 spend on the SQ5, in order to get one that really feels the business from a refinement point of view. For a quick straw poll, the BMW X3 M50 xDrive (with a 293kW inline six) asks for $129,600, while the Mercedes-AMG GLC43 (which has a 310kW four-cylinder engine) goes for $136,900 plus on-road costs.

If you don’t mind a firmer ride quality, then the Edition One is worth a look as well. Because you’re still getting good levels of handling and performance at a lower price. It's almost $30,000 less than the Bimmer and the Benz in this regard, and is admittedly missing a lot of the nice touches. But it punches just as hard in the performance stakes.

As a driver’s car, the SQ5 feels as sharp and accurate – in a clean, efficient manner – as you would expect. There’s not a lot of pomp or ceremony in the performance. It’s not raucous or overt through the powertrain or through the corners. Yes, there’s loads of grip and nice mid-corner responsiveness to explore. But it’s neutral and balanced – efficiently fast.

While Audi’s turbocharged petrol V6 has been around for some time in various guises, it still delivers in terms of responsiveness, performance and engagement here. There are some nice whizzes and bangs in the growling soundtrack, and that torque gives a good meaningful shove just about anywhere in the rev range. 

The engine is well managed by the seven-speed dual-clutch automatic transmission, which is no doubt helped by the 18kW/250Nm electric motor connected at the output shaft. 

Any braked trailer that is hooked onto the Audi SQ5 needs to be below 2000kg, despite the fact that you've got an oversupply of power and torque available. This does give you the ability to tow some larger and more heavily loaded trailers, but unbraked examples will need to stick to the regular 750kg limit.

When you're looking at performance medium SUVs, the Audi SQ5 has been a popular and dominant player in that space for some time. That will continue to be the case for the future, as the 2025 Audi SQ5 delivers in all of the right places.

The interior is quality, tech-laden and with flash design, and that 3.0-litre boosted V6 provides plenty of eager and engaging performance to enjoy.

If you want more subtle deftness to the ride quality, you'll need to go for the full-fat (and full-cost) option with air suspension.

But if you're more focussed on performance bang for buck – while still having an SUV that can fit the family in the cabin and a bit of gear in the boot – then the Edition One could be the perfect choice.

Sam Purcell has been writing about cars, four-wheel driving and camping since 2013, and obsessed with anything that goes brum-brum longer than he can remember. Sam joined the team at CarAdvice/Drive as the off-road Editor in 2018, after cutting his teeth at Unsealed 4X4 and Pat Callinan’s 4X4 Adventures. Off-road writer of the Year, Winner - Sam Purcell

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