A performance SUV that undercuts its closest German rivals by $16,000 to $21,000 while posting the same 0–62 mph time sounds like marketing fiction. The 2026 Audi SQ5 Edition One makes that claim in the real world, and after spending time behind the wheel, the numbers hold up in ways that genuinely surprised me.
Audi unveiled the third-generation Q5 in late 2024 and wasted no time slotting the SQ5 into the lineup, offering it in both standard SUV and Sportback body styles. What the brand hasn’t shouted loudly enough is how aggressively it’s priced — and how well it drives for that money.
The price gap between this and its rivals is almost embarrassing
In Australia, the SQ5 Edition One opens at AU$106,400 — that’s roughly $75,300 USD. The BMW X3 M50 starts at AU$129,600 ($91,700), and the Mercedes-AMG GLC43 opens at AU$136,900 ($96,900). That’s a gap of $16,400 to $21,600 before a single option is ticked on any of them.
In the US market, the SQ5 sits between $65,400 and $67,300 before options, which makes the value case even sharper. The Edition One spec exists specifically to bring entry pricing down, and it works. Audi trimmed the 21-inch wheels, dropped the Bang & Olufsen 16-speaker stereo, removed the head-up display, and swapped out the premium leather seats to hit that number. For buyers who plan to spend most of their time driving rather than parked with the stereo cranked, that’s a trade worth making.
362 horsepower from a mild-hybrid V6 that actually sounds good
The powertrain is shared with the S5 and S5 Avant, and it’s one of Audi’s stronger recent engineering efforts. A 3.0-liter turbocharged V6 pairs with an 18 kW electric motor and a 1.7 kWh battery pack, producing a combined 362 hp and 406 lb-ft of torque. Previous SQ5 generations offered both petrol and diesel options; this generation is petrol only.
What sets the SQ5 apart from the mechanically identical S5 is the exhaust calibration. Audi has tuned the SQ5 to deliver genuine cracks and pops in the sportier drive modes — something the S5 doesn’t get. It’s a small detail that meaningfully changes how the car feels during a spirited drive. A 4.5-second sprint to 62 mph matches the lighter S5 sedan, which tells you the SQ5’s extra bulk hasn’t cost it anything at the traffic light.
| Spec | 2026 Audi SQ5 | BMW X3 M50 | Mercedes-AMG GLC43 |
|---|---|---|---|
| Power | 362 hp | 398 hp | 375 hp |
| Torque | 406 lb-ft | 369 lb-ft | 369 lb-ft |
| 0–62 mph | 4.5 sec | 4.4 sec | 4.6 sec |
| US Starting Price | $65,400 | ~$82,000 | ~$75,000 |
| Cargo Volume | 520 L (18.3 cu ft) | 570 L (20.1 cu ft) | 490 L (17.3 cu ft) |
| Transmission | 7-spd DCT | 8-spd auto | 9-spd auto |
Where the money clearly didn’t go — and why that stings
Here’s the catch: the interior tells a different story to the price tag. Audi’s cabin quality has slipped noticeably in recent years, and the SQ5 doesn’t escape that trend. There’s too much piano black trim, too many hard plastic surfaces, and too many areas where fingers find cheap textures where premium materials should be.
The new S-branded sport seats are legitimately good — well-bolstered with adjustable lumbar support — but the Edition One misses out on ventilation and massage functions that the higher-spec SQ5 includes. The 14.5-inch infotainment screen runs on Android Automotive and performs fluidly, with wireless Apple CarPlay and Android Auto included. But for a six-figure Australian asking price, some of these omissions are hard to ignore. The real story is that the driving experience punches above the cabin’s weight class, which creates a strange but not unpleasant contradiction.
The dynamics alone justify the conversation over BMW and AMG
Once the SQ5 is moving, most of the interior criticism becomes easier to set aside. Steering response is sharp and direct, the Michelin Pilot Sport 4 SUV tires generate serious grip, and the front end turns with real precision. The Edition One comes standard with passive dampers that balance sporty stiffness with daily usability better than expected for a fixed setup.
The 7-speed dual-clutch gearbox is mostly excellent, though it does deliver harsh shifts in Dynamic mode and can feel abrupt at parking lot speeds — a known trait of DCTs at low velocity. Under hard acceleration, the relatively soft suspension causes a pronounced squat, and gear changes produce a noticeable forward-and-back motion. Neither is a dealbreaker, but both are worth knowing before you commit. The optional adaptive air suspension — priced at AU$3,800 — is likely worth every cent if the car spends any time on less-than-perfect roads.
Why this matters
- Audi is pricing performance below BMW and AMG to recapture mid-tier segment share
- Mild-hybrid V6 architecture now spans S5, SQ5, confirming Audi’s platform efficiency push
- Interior cost-cutting is a growing pattern across the German luxury segment, not just Audi
The verdict
The 2026 Audi SQ5 Edition One is one of the most dynamically convincing performance SUVs under $70,000 in the US right now. The exhaust note adds character the S5 lacks, the powertrain is smooth and fast, and the steering gives real feedback. The interior doesn’t match what rivals charge for their equivalent models — but then again, neither does the Audi’s asking price. If cabin tactility is your priority, spend extra on the fully-loaded SQ5 or look elsewhere. If you want a car that drives with conviction and keeps a few thousand dollars in your pocket versus BMW or AMG, this generation of SQ5 makes a strong, hard-to-dismiss case. Audi has quietly built its best-value performance SUV in years, and it deserves more attention than it’s getting.
