Audi is reportedly developing a performance-oriented SQ3 SUV, as indicated by recent spy photos of a prototype featuring four round exhaust pipes. This model would serve as a direct competitor to the 312-hp BMW X1 M35i, a segment where Audi previously lacked a dedicated performance offering.
While official specifications remain unconfirmed, the vehicle is expected to utilize the MQB Evo platform and a 2.0-liter four-cylinder EA888 engine, similar to the setup in the Cupra Formentor and the Audi S3. This powertrain is projected to deliver approximately 329 hp, paired with a seven-speed dual-clutch transmission and an all-wheel-drive system.
Performance estimates suggest a 0-62 mph acceleration time of roughly 4.8 seconds. Although this is slower than the discontinued five-cylinder RSQ3, which produced 394 hp, the new SQ3 is expected to be more affordable, with market speculation placing the price point below $60,000.
The RSQ3 was discontinued in 2024, and the all-new Q3 generation debuted in 2025. While the RSQ3 was never sold in the United States, industry observers suggest the upcoming SQ3 could potentially be offered in the American market.
