2025 Audi SQ5 Assessment: In-Depth Analysis of Characteristics and Capabilities

The 2025 Audi SQ5 is completely redesigned and significantly improved compared to its predecessor. While the previous model wasn’t poor by any means, Audi’s enhancements in design, layout, and overall comfort make this new, sportier Q5 stand out among its competitors from Munich and Stuttgart.

Historically, buyers gravitated toward Mercedes for its softer ride, traditional luxury, and the iconic illuminated three-pointed star, of course. Likewise, BMW models were sought after for their athletic appearance, precise handling, and innovative (if sometimes perplexing) technologies. Audis, however, occupied a middle ground, presenting sleek, understated designs, good dependability, and a sophisticated yet calm presence that its rivals lacked. But with Mercedes losing its grip over the years and BMW focusing on producing overpowered, characterless, unattractive vehicles, Audi is seizing this opportunity with excellent design, solid engines, and, above all, a fun driving experience.

That’s the essence of the Audi SQ5. It’s the type of SUV you purchase due to life circumstances (children, pets, active lifestyle, career, etc.), but it’s also the kind of SUV that you genuinely enjoy driving because it’s that impressive. I discovered this during a recent week-long test that included ample city driving, plus a rapid trip from Indiana to Michigan for a family gathering.

The Essentials

The SQ5 is categorized as a compact SUV, but it’s almost on the brink of being midsize, and in my opinion, it truly qualifies as midsize. It positions itself above the charming subcompact Q3 and below the larger (technically midsize) Q7. Featuring a striking new design for 2025, it boasts flowing curves and more prominent features at both the front and rear, including larger air intakes, bolder fenders, quad exhausts, 21-inch rims, and red S badging.

The magic unfolds inside. The revamped interior is what truly sets it apart from the previous generation, and it’s honestly what renders it superior to what Mercedes, BMW, or even Cadillac currently provide. Yes, there are numerous screens—four in my Prestige model—but they all have distinct purposes and, most importantly, they’re not challenging to use. While cruising through the city, I relied on the new 11.9-inch Audi virtual cockpit and the 14.5-inch main touchscreen for all of my standard information and functions. The optional 10.9-inch passenger screen was somewhat beneficial for my wife during our trip north, allowing her to explore media and interact with the GPS, but it’s not something I would necessarily opt for myself.

The climate controls are integrated into the screen rather than being physical buttons, but they remain fixed at the bottom of every page, making them relatively easy to reach without diverting your eyes from the road. The steering looks appealing and feels fantastic in your grip, while the touch-sensitive controls within it can either be touched or pressed to perform the same function. Typically, I dislike this control style, but I didn’t find them overly responsive, so accidental clicks or adjustments were minimal.

Beneath the hood lies the SQ5’s powerhouse, a 2.0-liter turbocharged four-cylinder engine producing 362 horsepower and 406 lb-ft of torque. And let me tell you, it feels significantly more than 362. When you put the pedal down, the sensation suggests it’s close to 400 horses. The SQ5 surges ahead and continues to propel as you hit the triple-digit speed mark.

Operating the Audi SQ5

In a daily-use SUV like the SQ5, comfort and practicality are critical. Unlike the BMW M SUVs, Audi prioritizes adaptability over raw performance, meaning you won’t wince when navigating over road imperfections or worry about spills from your children’s drinks when accelerating from a stoplight. The SQ5 is well-balanced in Comfort mode, softening the suspension, throttle response, shift points, and steering effort. While I haven’t driven the standard Q5, I assume it behaves similarly to what our former reviews editor Chris Tsui remarked earlier this year:

“In terms of driving, the fresh Q5 might be best characterized as agreeable. The ride is pleasant, the powertrain—a 268-horsepower 2.0-liter turbo-four powering all four wheels—is smooth and adequately powerful, and its on-road dynamics exude accessible confidence. The steering is suitably light and adequately precise (reinforced components contribute to a more direct feel at low speeds and a more relaxed sensation at high ones), while the brake pedal is wonderfully firm and responsive for a vehicle of this kind.“

When you crank up the intensity and switch to Dynamic mode, the SQ5 comes alive, offering an abundance of everything. I’d say the distinction between Comfort and Dynamic is more pronounced than in most other vehicles with adjustable driving modes. Racing through roundabouts in the suburbs of Indianapolis was incredibly enjoyable, with the SQ5 feeling more like a low-sport sedan than an SUV. The front end is so precise and quick on turn-in that it genuinely takes a moment to adapt to how well it reacts to driving commands—something I rarely say about a sporty crossover. This vehicle is nimble and delights in delivering exceptional cornering capability.

On the highway, it excels in that quintessential German luxury car fashion, but that should come as no surprise. It’s a broad, potent, and luxurious crossover with ample power, so naturally, it can (and will) cruise at unlawful speeds all day long. Similar to the Q3, the new Q5 and SQ5 have reduced gears in the latest transmission, moving from eight speeds in the previous generation to seven in this current model. However, this change doesn’t impact performance at all, as the new dual-clutch is nearly flawless, and the calibration is also well-executed. The brakes are potent, though they can come off as a bit too eager at times, which was the sole drawback I noted during my test. Perhaps it simply requires more time than a week to adjust to them, but I struggled to achieve a smooth stop, particularly when I wasn’t focused on that task.

Strengths and Weaknesses

Striking aesthetics, a cozy interior, nimble driving dynamics, and an overall package that conveys high-quality are the key highlights of the SQ5.

Conversely, some of the interior materials—like the shiny finishes on the dashboard buttons and door panels—look fantastic when clean but can quickly appear dirty after limited use and need frequent cleaning. Additionally, the overly responsive brakes are a downside to the driving experience.

Fuel Efficiency

The 362-hp Audi SQ5 isn’t the most fuel-efficient crossover available, but that’s understandable given its luxurious features and performance prowess. It’s rated at 19 mpg city, 26 mpg highway, and 22 mpg combined. However, I would note that I achieved better fuel efficiency during my week with the SQ5 than I generally do with my 285-hp V6 Honda Passport long-term vehicle.

Cost and Conclusion

At over $70,000, the SQ5 is certainly not a typical SUV for everyone. However, if you seek a vehicle that ticks all the boxes from functionality to luxury and driving pleasure, no better option exists in this price range. Furthermore, this new-generation model distinguishes itself with its elegant aesthetics rather than gaudy illuminated badges or oversized kidney grilles. Although it features a notable grille, it feels more proportionate to the overall front fascia.

Moreover, as I’ve noted in the recent assessments of the RS3, RSQ8, Q3, and other models, it seems Audi is forging a new direction in this tumultuous period in the automotive sector by releasing vehicles that resonate with both enthusiasts and the broader public. It almost feels like it has rediscovered its essence and is creating enjoyable yet practical vehicles. The SQ5 is a prime example.

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