Over the course of three generations, the Audi Q3 subcompact luxury crossover has never been available in SQ3 form, though a five-cylinder RS Q3 was available until 2025. That seems to be changing with the latest iteration of the Q3, as the Autoblog spies have spotted a development mule for a mid-tier performance variant, and although this is an early prototype and much of the styling will evolve to become sportier, there are dead giveaways that we’re looking at the first SQ3, particularly at the back. Let’s take a closer look.
2028 Audi SQ3 Spied With Quad Exhaust
Autoblog/SH Proshots
The regular Audi Q3 has hidden exhaust tips, while the range-topping RS Q3, which had a five-cylinder turbo engine, started out with a single oval exhaust tip and later got a second one. This prototype, however, has two pairs of dual exhaust tips, a signature design element of Audi’s S models, like the S3. The rest of this development vehicle seems mostly unchanged, with the same fron fascia as the regular Q3. This places the headlight clusters at the top of two large, L-shaped gloss black recesses, with a large-mesh grille in between and a lower intake opening connecting the two elements. This prototype also has an S-line badge on each front fender, though this will probably be ditched when the production model appears. Instead, the SQ3 will stand out with a slightly more aggressive body kit, likely including different rocker panel accents, matte silver lower side intake embellishments, and silver highlights in the grille mesh, wing mirrors, glasshouse surrounds, and rear diffuser panel.
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We can also expect the false diffuser elements to look a little more agreesive, with larger exhaust tips. A sportier roof spoiler is also likely, and we can expect various S badges and contrasting red highlights in the cabin. But what will be under the skin? According to our spies, the VW Group’s 2.0-liter Turbo Stratified Injection four-cylinder to appear, as usual, potentially with more than 333 horsepower. We’ll get the full picture in the second half of 2027, with the SQ3 likely to debut for the 2028 model year.
Autoblog’s Take
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One can’t help but wonder why Audi is introducing an SQ3 for the first time now, but we don’t see any obvious drawbacks. For a start, Audi is not doing as well as BMW and Mercedes, and opening a new revenue stream makes sense. The SQ3 will compete directly with the M Performance X1, which currently has the M35i designation, and we suspect that Audi has decided to launch this rather than a new RS Q3, not only because keeping the five-cylinder legal worldwide is challenging, but also because even BMW, a niche-splitting master, hasn’t seen fit to launch a full-fat M version of the X1. This subcompact crossover segment is already tough to compete in, and allocating resources towards an M/RS version of each brand’s competitor would be risky, given how expensive it would have to be. By creating an SQ3, Audi may be able to take advantage of sister brand Cupra’s Formentor, offering buyers a similar experience in an Audi package without too significant an investment in development. And given how slow the general public’s switch to EVs is, not to mention the financial struggles of parent Volkswagen, Audi needs to find new ways of attracting customers. A new crossover variant that isn’t too expensive or extreme, yet isn’t too dull, may be just what Audi needs to lure in more buyers.
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