Background
Good things often come in little packages. The Q3 compact SUV has certainly been good for Audi, with over 2 million sold since the first generation model's launch back in 2011, a number heavily contributed to by the MK2 design which followed in 2018. So what of this third generation version, announced in mid-2025, built at the brand's Hungarian factory in Gyor and heavily based on a close VW Group rival, the CUPRA Terramar.
As before, it's essentially an SUV version of Audi's A3 small hatch, so gets the same platform and powertrains (which don't include an EV version; only a PHEV). But the styling and interior are very different from the A3 because this is the first more compact Audi model to feature the brand's latest generation style of design. As before, its key segment targets are the Mercedes GLA and the BMW X1, but likely customers may also be looking at upper-spec versions of models like the Honda HR-V, the Alfa Romeo Junior and the Lexus LBX.
Engines and Tech Spec
Audi has committed to put a bit more effort into its combustion powertrains for the remainder of this decade. But that switch away from an EV-only engineering focus came too late to benefit this third generation Q3, which persists with a similar set of combustion drivetrains to those used by last versions of its predecessor. These even include the brand's usual 150PS 2.0 TDI diesel, which still sells alongside the 150PS 1.5 TFSI mild hybrid petrol unit most customers will choose. Auto transmission is now mandatory - the usual dual clutch seven-speed s tronic set-up for conventionally-engined models.
Disappointingly, the Q3 doesn't get the advanced 2.0-litre e-hybrid PHEV drivetrain we've seen in the larger Q5. Just a further developed version of the previous Plug-in Hybrid petrol set-up borrowed from the A3, which sees the TFSI model's 1.5-litre four cylinder unit mated with six-speed dual clutch transmission and a 25.7kWh battery offering a (much increased) EV range of up to 74.4 miles. The Q3 e-hybrid's peak power is 272PS, with 400Nm of torque.
A pair of conventional 2.0 TFSI petrol units round out the range, with 204PS or 265PS - both with quattro 4WD. All other Q3s are front-driven, with all models based on the same MQB platform as the A3 Sportback. There are three suspension set-ups; standard steel springs; firmer passive sport suspension for top models; and an optional adaptive set-up with twin valve dampers.
Design and Build
This is the first time that Audi's latest design language has been translated into a smaller model and fans of the Ingolstadt brand will find much to like about it. Do you really need something as large as the company's Q5 when this Q3 translates much of that car's pavement presence into an almost equally striking package? As before, there's a choice of two body styles, the standard SUV or a sleeker Sportback version.
At the front, there's a fresh take on the company's usual Singleframe grille, flanked by hidden LED headlamps and slim upper daytime running light strips. The rear treatment is inspired by the A6 Avant, with slim angular upper light units above a full-width light bar and an illuminated central Audi logo. Only from the side might you guess that most of the core body is shared with the CUPRA Terramar (the SUV version's doors are the same). Wheel sizes vary between 18 and 20-inches.
The big changes though, are reserved for the cabin. There are new screens of course - an 11.9-inch display for the driver and a 12.8-inch touchscreen in the centre. But the real talking point is a deletion of the usual steering wheel column stalks. Instead, a static wraparound panel behind the wheel houses what Audi calls a 'steering wheel control unit'. On the left end of this, you'll find rocker panels for the indicators and a scroll wheel for the wipers. The right side of that panel is the gear selector, freeing up space on the centre console.
High-end materials are liberally used, with perforated ambient lighting in the doors; and the three-dimensional base for the centre screen can be specified in various different finishes. Rear seat passengers get a sliding bench with reclining backrests. And there's a 575-litre boot in conventionally-engined SUV models, growing to 1,386-litres with the rear seat folded.
Market and Model
Prices start at £38,895 for this third generation Q3 - that's for the base 1.5-litre mild hybrid TFSI petrol model. You'll need from £40,000 to get yourself the 2.0 TDI; and from around £45,800 for the e-hybrid petrol PHEV. For the UK, there are three trim lines - the usual 'Sport', 'S line' and 'Edition 1' options. There's a choice of two body styles, SUV or the sleeker Sportback variant.
A standard, all models get the brand's latest panoramic curved interactive dashboard display with its 11.9-inch 'Audi virtual cockpit plus' screen and 12.8-inch 'MMI touch' monitor. Most variants also offer ambient multi-coloured interior lighting and three-zone deluxe climate control. As you'd expect, a wide range of different trimming and material choices are available depending on the model and spec you choose, including perforated ambient lighting in the door cards. And your Q3 can be had with customisable digital LED lighting that uses micro-LEDs for animated effects.
There's a high-end stereo system option made by Sonos, available as part of an optional 'Sound & Vision' pack (which also includes a Head-up display and more powerful USB charging ports). The alternative 'Sound & Vision Pack Pro' package adds to this with adaptive cruise assist, surround view cameras, progressive steering, red brake calipers, suspension with damper control and some extra safety kit - proactive occupant protection (front, side and rear); and 'emergency assist' (which brings the car to a controlled stop should you get taken ill at the wheel).
Cost of Ownership
The Q3 model line has always been pretty efficient and this third generation model doesn't deviate too far from that script. The volume 1.5-litre four cylinder TFSI mild hybrid petrol engine manages around 43mpg on the combined cycle and from just under 150g/km of CO2. With the front driven 2.0-litre TDI diesel, expect around 55mpg on the combined cycle and around 135g/km of CO2.
As we told you in our 'Driving' section, the e-hybrid Plug-in variant has a range of up to 74.4 miles (over double what it was before) and can be charged via an AC wallbox in around 4 hours. Obviously, there are big savings on Benefit-in-Kind tax by going the e-hybrid route. But you'll need to work out whether these justify the substantially greater up-front purchase price.
As for maintenance, well servicing your Q3 should be no more taxing than is the case with one of the company's larger cars. As usual with Audi models, there's a choice of either a 'Fixed' or a 'Flexible' servicing regime, the choice between the two depending on the extent of your likely annual mileage. There's the usual unremarkable three year 60,000 mile Audi warranty. You can expect residual values, as usual with a Q3, to be very strong.