Audi aims for segment top spot with Q3

AUDI is once again targeting the number one sales spot among its premium compact SUV rivals with its third-generation Q3, according to its Australian head of product Matthew Dale.

Speaking with GoAuto at the local launch of the new Q3 in Byron Bay, Mr Dale explained that Audi is constantly monitoring its competitors to remain competitive.

“Competition is healthy. We’re good sports about that,” he said.

“We obviously have a very broad portfolio of vehicles. The market environment is obviously (made up of) the consumer and competitors.

“So, if consumers have certain buying trends or competitors start to position cars accordingly, we’re always keeping our finger on the pulse.

“And that’s one of those evaluations that the team lives and breathes every day to position cars accordingly.”

The recently launched Audi Q3 is poised to do battle in Australia’s premium small SUV segment against the BMW X1 and the Mercedes-Benz GLA-Class, updated versions of both of which are on the horizon.

Its BMW rival – expected to land in 2027 – is anticipated to receive a Neue Klasse-inspired facelift, bringing with it revised exterior aesthetics and updated tech features such as the Panoramic Vision windscreen display.

Meanwhile, the next-generation Mercedes GLA-Class is also in the pipeline, riding on the new MMA (Mercedes-Benz Modular Architecture) platform – which is also being used by the new-generation CLA – designed to support both electric and 48-volt mild hybrid powertrains.

It is expected to launch in electric form in late 2026 or early 2027, followed shortly afterwards by a mild hybrid model.

Historically, the Audi Q3 has maintained strong sales figures in Australia’s small, premium SUV segment. 

In the first-generation model’s debut sales year in Australia in 2012, it was the best-selling model among small SUVs over $40,000, with 1472 examples sold according to VFACTS data.

That year, it bested the BMW X1’s 1464 sales and the Mini Countryman’s 516 examples sold.

In 2024, the Q3 was the best-selling model in the small SUV above $45,000 category with 5497 examples sold.

Its BMW X1 and Mercedes GLA rivals mustered 4536 and 3103 deliveries respectively. 

Last year, the Q3 was the third best-selling model in the small SUV above $45,000 category with 4206 cars finding Australian homes.

It was the best-selling model in Audi’s local portfolio, even outselling the mid-sized Q5 (3570 examples were delivered last year) despite that model competing in Australia’s most popular market segment.

But it was the BMW X1 that took the top spot with 5306 examples sold, followed by the Volkswagen T-Roc (which had been classified by VFACTS as a sub-$45,000 model the year prior) with 5159 deliveries. Mercedes sold 3244 GLAs.

Audi is aiming to continue the Q3’s strong sales with its third-generation model and potentially retake the top spot among its premium small SUV rivals, according to Mr Dale.

“We’d hope to continue that trend,” he added.

“We believe we’ve got a really strong product and its price point and value versus our competitors in this end of the market is extremely good and well positioned.

“I think that’s something that will speak to the Australian consumer at this point and hopefully the end result of that is to hold that previous history. 

“But who knows you can have very aggressive competitors in this market as you know.

“It’s a very saturated market with the number of brands and the total market doesn’t grow exponentially in terms of volume so we’re all taking a slice of the pie.

“It’s just (a matter of) who you take it from,” he admitted.

“Our target would be to at least hold (the Q3’s) historical sales trend and hopefully be number one in the segment again.”

The third generation Audi Q3 launches in Australia with 10 different variants – including Launch Edition models – spread across 110kW, 150kW, and 195kW powertrain options and SUV and Sportback body styles.

Prices range between $61,600 for the entry-level 110kW SUV and $84,400 for the range-topping 195kW Sportback.

A plug-in hybrid model – which is currently sold overseas – is also understood to be under consideration for Australia.

As of the end of April, 532 Audi Q3s have been sold in Australia.

Currently, it lags the Mercedes GLA’s 1223 local sales, while VFACTS sales data groups the BMW X1 and battery electric iX1 together for 1582 total sales.