Audi is undergoing a major product transformation, with recent releases including the next-gen A5, Q5, and electric A6 and Q6 E-Tron models. The company is now turning its attention to one of its more compact offerings—the Q3. After years without significant change, the Q3 enters its third generation with comprehensive updates to both its exterior and interior, aiming to compete more directly with rivals like the BMW X1. While it may seem like just another compact luxury crossover, the 2026 Q3 brings some unexpected innovations.
From the outside, Audi is embracing a bold new lighting strategy. Unlike the larger Q5, the new Q3 features split headlights and taillights. The main headlights, which are made up of 25,600 micro-LEDs—each thinner than a human hair—are cleverly hidden behind darkened glass, with only the daytime running lights immediately visible. At the rear, Audi introduces a dual lighting setup that includes a lower LED strip and an upper OLED array. Drivers can customize the rear light signatures by selecting from six graphic designs, controlled via the segmentation of 36 different lighting elements.
A notable departure from previous models is the absence of fake exhaust tips. Audi has committed to removing them, and the Q3 reflects this shift with a clean rear bumper that hides the exhaust outlet. The S Line variant showcases a sleek diffuser without any cutouts, suggesting more aggressive designs may be reserved for future performance-focused S or RS versions.
Visually, the new Q3 shares a striking resemblance with the larger Q5. Audi states that the wheel arch designs are inspired by the original Quattro, though the overall silhouette blurs the distinction between models. Wheel sizes vary from 17 inches on the base version to 20 inches on higher trims. The tire width has increased for better stability, and the drag coefficient has been improved from 0.32 to 0.30.
Inside, the cabin adopts Audi’s latest design language but forgoes an optional passenger-side screen. This results in a more cohesive dashboard layout. Drivers get a 11.9-inch digital instrument display and a 12.8-inch infotainment screen powered by Android Automotive. However, some may find the touch-sensitive steering wheel buttons and thick screen bezels a drawback. One standout interior feature is acoustic glazing on the front-side windows—a first for a compact Audi—offering a quieter driving experience.
Another ergonomic update includes relocating the gear selector to a stalk behind the steering wheel. This change opens up space on the center console for additional storage, cupholders, and connectivity options. The multifunction stalk on the left now handles lights, indicators, and wipers.
In terms of practicality, the new Q3 offers 488 liters of cargo space with the rear seats in place, which increases to 575 liters when slid forward. Folding the seats flat provides a total of 1,386 liters. The Q3 also has a towing capacity of up to 2,100 kilograms.
Engine options include a 1.5-liter turbocharged petrol engine with cylinder deactivation, producing 148 hp and 250 Nm of torque. A 2.0-liter petrol engine with 261 hp and 400 Nm is also available, paired with Quattro all-wheel drive. For diesel enthusiasts, there’s a 2.0 TDI with 148 hp and 360 Nm, available only with front-wheel drive. All internal combustion options use a seven-speed dual-clutch transmission.
The plug-in hybrid is perhaps the most intriguing, combining a 1.5-liter petrol engine with an electric motor for a combined 268 hp and 400 Nm. It features a 19.7 kWh battery with a 120 km WLTP electric range and can be charged from 10% to 80% in under 30 minutes via 50 kW DC fast charging. This variant uses a six-speed automatic gearbox and is front-wheel drive only.
The new Audi Q3 will debut in Europe in September 2025, with pricing starting at €44,600 for the base petrol version and €49,300 for the plug-in hybrid. A U.S. release is expected by late 2025 or early 2026.