2025 Audi SQ5 Review: The Fast & Flawed In-Betweener

A brilliant performance SUV hobbled by frustrating tech, just before a fix arrives.

2025 Audi SQ5 in Ultra Blue metallic — front three-quarter studio shot showing quad exhaust and 21-inch wheels

: The 2025 Audi SQ5 is a properly quick, sharp-handling performance SUV that’s let down by a frustrating, over-digitised cabin. It’s a compelling package on the road, but its position is awkward. With Audi already announcing major fixes for the 2026 model—including a return to proper buttons and better software—this brilliant driver sits in a tricky in-between moment, making the "buy now or wait" question more important than ever.

Introduction: The 2025 Audi SQ5 in 2026 context

The 2025 Audi SQ5 finds itself in a uniquely odd spot. This isn’t some run-out model at the end of its life; it’s the first year of a brand-new generation, packed with genuine performance hardware and a sharp design. Yet, Audi has already signalled a series of meaningful updates for the 2026 model year, directly tackling some of the most common criticisms levelled at this new cabin.

That creates a real dilemma. Do you appreciate the 2025 SQ5 for the raw performance and luxury it offers today, knowing its tech interface is already on the chopping block? Or do you hold off for the refined 2026 version? In our testing, we focused on getting to the truth of the SQ5’s driving credentials while honestly assessing those interior quirks, all with an eye on what’s just around the corner. It’s a fast, capable, and somewhat compromised flagship.

Engine, Performance and the 7-Speed Dual-Clutch

At the heart of the SQ5 is a 3.0-litre turbocharged V6 petrol engine, bolstered by a 48-volt mild-hybrid system (MHEV plus). It delivers a stout 270 kW and 550 Nm of torque, sending power to all four wheels via Audi’s quattro system and a 7-speed S tronic dual-clutch transmission.

The official 0–100 km/h sprint is done in a claimed 4.5 seconds, and in real-world driving, that translates to effortless, surging acceleration. A key strength is the powertrain’s smoothness. It gathers speed rapidly but without the brutal head-toss of some rivals, making it a superb high-speed cruiser. The dual-clutch ‘box is a highlight; in comfort mode, shifts are imperceptibly smooth, and even in Dynamic mode, it avoids the jerky aggression sometimes associated with this transmission type. Paddle shifters are there, though we found little need for them—the calibration is that good.

There is a slight hesitation off the line from a standstill, a trait common in modern turbo-automatics tuned for refinement over raw immediacy. Once rolling, however, throttle response is linear and potent. The exhaust note is purposeful, with authentic quad tips, and can emit subtle pops in the sportier drive modes.

Ride, Handling and the Sport Air Suspension

Standard equipment on every SQ5 is a sport-tuned adaptive air suspension. This is a big differentiator from the standard Q5, where air suspension is reserved for the top-spec Prestige. The setup provides a palpable sense of control, keeping the body remarkably flat through corners and quick direction changes. On twisting roads, it feels planted and agile, shrinking around the driver in a way a mid-size SUV has no right to.

The trade-off is compliance. The ride is noticeably firmer than a Q5 on air suspension, especially on Australia’s often coarse-chip or broken urban roads. It’s never harsh to the point of being uncomfortable, but the comfort-first buyer will prefer the standard car’s softer tune. The larger front brakes (with red S-branded calipers) provide confident stopping power, matching the engine’s performance.

It’s worth noting that for 2025, the quattro system is a standard all-wheel-drive setup without a fancy sport rear differential. That hardware is reserved for the upcoming 2026 Dynamic Plus mode. For the vast majority of street driving, even enthusiastic driving on backroads, the standard system provides ample traction and adjustable handling.

Interior, MMI Screens and the Plastic Problem

Inside, the SQ5 distinguishes itself with superb sport seats—standard with more aggressive bolstering and optional massage function (an SQ5 exclusive). The flat-bottom steering wheel is a pleasure to hold. Technology abounds: a crisp 12.3-inch Virtual Cockpit, a 10.1-inch MMI touchscreen, and an optional front passenger display. Our Prestige test car featured the stunning 19-speaker Bang & Olufsen 3D sound system.

However, this is where the 2025 model draws its most significant criticism. The centre console abandons physical buttons for a glossy black panel with haptic sliders for volume and temperature. They look sleek but are distracting to use while driving, lacking the tactile feedback of a simple dial. The new MMI software, while feature-rich, has a steeper learning curve than Audi’s previous generation.

The most egregious issue is the door cards. A vast panel is littered with hard, plasticky buttons for everything from window switches to memory seats. It feels cheap, looks cluttered, and is ergonomically awkward to use. It’s a baffling step backward in perceived quality. Other niggles include an inconsistent wireless charger and the fact that a sunroof is locked to the Prestige pack.

Positively, boot space is competitive, and rear-seat accommodation is adequate for adults up to about 183 cm (6’0”), though fitting a rear-facing child seat behind a tall driver will be tight.

Safety and Driver Assistance

Audi has equipped the new-generation Q5/SQ5 with a comprehensive safety suite. While the latest generation is yet to be rated by ANCAP, its sister model, the Q5, achieved a 5-star Euro NCAP rating in 2025. It comes with nine airbags, including a front-centre airbag to prevent head clashes between front occupants.

Standard driver aids are extensive and include a 360-degree camera, traffic sign recognition, adaptive cruise control with lane centring, blind-spot monitoring, and rear cross-traffic alert. The systems work unobtrusively, and the lane-centring function is easily toggled via a stalk button. A head-up display (Prestige) clearly projects speed and navigation data.

How the 2025 Audi SQ5 Compares to its Rivals

The SQ5 competes in a fierce segment of mid-size performance luxury SUVs. Its primary targets are the BMW X3 M50, the Mercedes-AMG GLC 43, and the Porsche Macan S. It undercuts the German rivals on price in Australia while offering comparable straight-line speed. The Porsche remains the chassis benchmark but is less practical and more expensive. The AMG GLC 43 prioritises interior theatre, while the BMW is the most direct competitor for driving honours.

2025 Audi SQ5 vs BMW X3 M50: Which Is Better?

This is the core battle. Both are mid-size performance SUVs powered by turbocharged six-cylinder engines with mild-hybrid assistance. The Audi SQ5 uses a 3.0L V6 turbo with 270 kW/550 Nm, while the BMW X3 M50 employs a 3.0L inline-six turbo making 293 kW/580 Nm. Their 0–100 km/h times are virtually identical: 4.5 seconds for the Audi, 4.6 for the BMW.

The philosophical difference emerges on the road. The SQ5, with its standard sport air suspension, feels flatter and more composed in hard cornering. The BMW counters with sharper, more communicative steering and a rear-biased all-wheel-drive system that feels more playful. The Audi’s dual-clutch transmission is smoother at low speeds; the BMW’s torque-converter automatic is unburly in its shifts.

Inside, the battle of philosophies continues. Audi’s all-digital, screen-heavy cockpit looks high-tech but is hampered by the frustrating haptic sliders and button panels. BMW’s iDrive 9, with its intuitive rotary controller and cleaner menu structure, is simply easier to use while driving. The BMW also offers slightly more rear-seat legroom.

The Audi holds a significant price advantage, starting over $30,000 less than the BMW in Australia. Both offer a 5-year/unlimited-kilometre warranty.

> **Which one is better?** > **Buy the Audi SQ5 if** you prioritise razor-sharp handling, a superbly smooth dual-clutch gearbox, and getting a significant amount of performance hardware for a lower price. > **Buy the BMW X3 M50 if** you value a more intuitive, driver-focused tech interface, a slightly more spacious cabin, and a rear-driven handling balance that encourages playfulness. > **Our pick** is the BMW X3 M50. Despite the price premium, its superior everyday usability, more engaging steering feel, and faultless tech ergonomics make it the more complete and less frustrating performance SUV to live with.

What’s Coming for the 2026 Audi SQ5

Audi is addressing the 2025 model’s biggest pain points for 2026. The most welcome change is the return of physical controls: the controversial haptic sliders on the centre stack will be replaced with proper rollers, and the MMI software will be updated for a cleaner, more responsive interface.

New tech includes remote engine start via the myAudi app, Park Assist Pro (which can remember parking manoeuvres), an enhanced 360-degree camera with a top-down view, and a rear collision avoidance system. A new Dynamic Plus mode will introduce a more playful, brake-vectoring rear differential setting.

The front passenger display, previously exclusive to the Prestige, will become available on the mid-tier Premium Plus. The sunroof will now be standard across all trims. An optional Carbon Package will offer carbon fibre mirror caps and side sills.

Should You Buy the 2025 Audi SQ5 or Wait?

**Buy it if** you can secure a compelling deal that outweighs the incoming updates, and your priority is the core driving experience—the engine, suspension, and seats—which remain exceptional and unchanged. You’re willing to live with a flawed but functional tech interface.

**Wait for the 2026 if** cabin ergonomics and tech usability are high on your priority list. The return of proper buttons, updated software, and the addition of remote start represent a meaningful quality-of-life upgrade. If you’re paying near full price, the 2026 model is the smarter long-term ownership proposition.

FAQ

How much is the 2025 Audi SQ5 in Australia?

The 2025 Audi SQ5 starts from $99,550 for the Edition One, with pricing extending up to $131,560 for a fully-equipped Prestige model.

What engine does the 2025 Audi SQ5 use?

It uses a 3.0-litre turbocharged V6 petrol engine paired with a 48-volt mild-hybrid system (MHEV plus), producing 270 kW and 550 Nm of torque.

Is the 2025 Audi SQ5 faster than the BMW X3 M50?

They are virtually identical. The Audi SQ5 claims a 0–100 km/h time of 4.5 seconds, while the BMW X3 M50 claims 4.6 seconds.

Does the 2025 Audi SQ5 have a hybrid system?

Yes, it features a mild-hybrid (MHEV plus) system. It’s not a plug-in hybrid and cannot drive on electric power alone; the 48-volt system assists the engine for smoother start-stop and marginal efficiency gains.

What’s changing for the 2026 Audi SQ5?

Key changes include updated MMI software, a return to scroll wheels (replacing haptic sliders), rollers on the centre console, remote start via the app, a sunroof becoming standard, and the front passenger display dropping to the Premium Plus trim.

What’s the fuel consumption of the 2025 Audi SQ5?

Officially, the 2025 Audi SQ5 uses a claimed 9.2 L/100 km on the combined cycle in Australia.

What’s the warranty on the 2025 Audi SQ5 in Australia?

Audi Australia provides a 5-year, unlimited-kilometre warranty. Customers can purchase extensions of up to two additional 2-year periods for a maximum of 9 years of coverage.