Audi's Upcoming Q3 Faces These 3 Fierce Competitors

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Audi will reveal its new crossover next week, and it has to overcome these three competitors.
New Q3 Faces Stiff Competition
Audi teased the new-generation Q3 subcompact crossover this week, which is set to be fully revealed on Monday, June 16. We expect a range of improvements to the brand's smallest crossover, which slots in below the Q5. While specifics about the Q3 are still up in the air, we do know which key rivals the new Q3 will have to match or surpass if it is to succeed in this competitive segment. Let's take a closer look at those.
BMW X1: The Sporty One
The third-generation BMW X1 debuted for the 2023 model year in the United States, and it's always been regarded as a sportier alternative to the more subdued Q3. That hasn't changed for the latest X1, which sports assertive, angular lines and two energetic powertrains. Even the base xDrive28i model has 241 horsepower and a 6.2-second 0-60 mph sprint time, easily better than the current Q3. The M35i gets 313 hp and a 5.2-second sprint, along with all the aggressive touches we expect of an M-lite model.
Despite its focus on performance, the X1 still delivers as a practical crossover, with a spacious rear seat and trunk. At 25.7 cubic feet, the X1 has a slightly larger trunk than the current Q3.
To match or surpass the X1, Audi will need to sharpen up the new Q3's chassis, while also giving it more power to keep up with its BMW rival.
Mercedes-Benz GLA-Class: The Fancy One
While the X1 entertains, the GLA impresses with its ritzy cabin, smooth ride, and posh appearance. It's evolved into a far more cohesive package than the first-generation GLA, but the Mercedes is quite expensive, starting at $43,000. The base model's performance (0-60 in 6.8 seconds) falls somewhere between the current Q3 and X1.
Inside, the GLA has the most striking design of these small luxury crossovers, with dual screens and elaborate lighting. It's not necessarily more substantial than the Audi or BMW, but the high-tech look appeals to the younger crowd, and they'll most likely be shopping in this category.
We expect the new Q3 to match the GLA in terms of tech, while being similarly refined.
2025 Mercedes-Benz GLA 250
Mercedes-Benz GLA-Class
Volvo XC40: The Left-Field One
The XC40 is no longer new, but Volvo got the small SUV recipe so right from the start that it remains in contention with its German competitors. The Volvo has a chunky yet timeless look to it, and the uncluttered interior has a more serene vibe than the high-tech GLA's. Volvo's infotainment system is not quite as advanced as the others, though.
The standard 247-hp powertrain delivers perky performance, with a 0-60 time of only 6.1 seconds. Once again, this is better than what the current Q3 delivers. It's also worth noting that the XC40 has a powerful 402-hp plug-in hybrid powertrain, which the existing Q3 does not. However, the new Q3 may have its own PHEV, which would greatly diversify the powertrain lineup for this smallest Audi crossover.
Inside, Volvo's interior quality is excellent, whereas some new Audi models seem to be a downgrade compared to previous models – let's hope the Q3 doesn't take a step back in this aspect.
Final Thoughts
Audi has often occupied a middle ground between the sportiness of BMW and the luxury of Mercedes, and the new Q3 is expected to do the same. Depending on how you look at it, this is a good or a bad thing: Either Audi offers the best of both worlds or ends up with a muddled identity.
Based on these three rivals, we hope Audi has focused on driver appeal and performance. These are areas in which one or more of these talented crossovers excel, or where the existing Q3 has fallen behind the pack. The current Q3 is still competitive in terms of quality and refinement, so we hope the same cost-cutting that's evident in larger new Audi models has not been applied here.
All will be revealed early next week when the covers come off the new Q3.
2026 Audi Q3 teaser
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