• Audi appears to be developing a sporty SQ3 SUV to take on the hottest BMW X1.
  • The five-cylinder RSQ3 was killed off in 2024 and an all-new Q3 debuted in 2025.
  • Audi never offered the RSQ3 in the USA but a 330+ hp SQ3 would likely be a hit.

Audi killed off the RSQ3 more than two years ago, though if you’re reading this from the US, there’s a good chance you didn’t notice. That’s because Audi never offered the growly, five-cylinder compact SUV stateside. But it looks like a different hot Q3 is in development, and this one looks like a prime contender for a green card.

Spy photographers snapped what appears to be an SQ3 prototype on maneuvers. How do we know? The big giveaway is the two pairs of round rear tailpipes, just like the ones on the S3 sedan. The old RSQ3, in common with the RS3, RS5 and RS6, has two oval pipes.

Related: Audi’s Next RS6 May Drop V8 And Still Beat BMW’s M5

What makes this a big deal is that Audi has never offered an SQ3 before. Which means America didn’t just miss out on the RSQ3 last time around, but also the chance to buy any kind of performance-themed Q3. S-Line pretenders don’t count, okay. It also meant Audi had no direct rival for BMW’s 312-hp (316 PS) X1 M35i.

Though Audi hasn’t confirmed it’s working on an SQ3, let alone what’s under the hood, it’s not hard to guess what’s likely to be lurking between the shock towers. Sister brand Cupra’s conceptually- and mechanically similar (both are based on the MQB Evo platform) Formentor SUV is offered with a 2.0-liter four-cylinder EA888 engine that cranks out 329 hp (333 PS). And VW’s due-soon European Tiguan R (but not the US version) is expected to get the same motor.

Like An S3 Sedan, Just Taller

 Audi’s RSQ3 Is Dead, But A New Kind Of Speedy Q3 Is Coming

It’s essentially the same engine fitted to the current Golf R and Audi S3 sedan, and like those cars, would send its ponies to all four wheels via a Haldex all-wheel-drive system to earn the SQ3 a Quattro badge. Expect a seven-speed dual-clutch and torque vectoring, probably with a drift mode. And, as these shots show, a bold grille pattern and plenty of gloss black trim and fake mesh to telegraph these performance credentials even when you’re parked up.

Our Money’s On A Sub-$60k Sticker

If it does land with a 329-horse rating, the SQ3 should be capable of a 0-62 mph in around 4.8 seconds. That’s based on the Cupra Formentor figures and would make the SQ3 three ticks slower than the old RSQ3. The old flagship of the Q3 lineup had the benefit of a turbo 2.5-liter 5-cylinder serving up 394 hp (400 PS) in Euro trim, but then the SQ3 will be much more affordable. A base S3 sedan, for example, costs $53,395 in the US and £49,410 in the UK, but step up to the RS3 and your invoice swells to $67,495 and £64,255.

The bigger question is whether Audi has only now created an SQ3 because it has no plans to replace the RSQ3. Although the five-banger RS3 remains on sale in the US, it’s no longer on sale in Europe due to emissions compliance issues. But Audi execs who understand what an asset a characterful engine is in an era dominated by me-too inline fours and electric motors have made noises about maybe reinventing the five as a hybrid. Here’s hoping.

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