Audi SQ5 Edition One v BMW X3 40d 2026 Comparison

In headline terms there’s next to nothing between the Audi SQ5 Edition One and the BMW X3 40d, the former asking $106,400 and the latter $111,900, both figures before on-road costs.

The Edition One bit is an important part of this equation, however, as it represents a substantial $16,000 saving compared to the regular SQ5 ($122,400 plus ORCs) but it does forgo some equipment as a result. We’ll touch on whether any of that is important in a moment.

As such, both variants sit one below their respective flagships, as BMW also offers a petrol-powered competitor to the SQ5 in the $130,600 (plus ORCs) X3 M50.

Looks aren’t typically a topic we spend a lot of time on because they’re so subjective, but there was a degree of unanimity among those on this test so it’s worth a few words, though of course you may disagree.

The Audi SQ5 Edition One wears 20-inch wheels that somehow look like 17s and, combined with the standard black exterior package that turns the exterior trim, er, black, and dark grey paintwork (a $2000 option like all colours other than white, bar the $3300 Sakhir Gold), gives it a monochrome look that’s subtle to the point of anonymity.

If you want a sporty, premium mid-size SUV without letting the neighbours know you’ve bought such a thing, the SQ5 Edition One could be the car for you.

Despite being de-contented the Audi still boasts Matrix LED headlights, keyless entry and start, a powered tailgate, panoramic sunroof, an eight-speaker sound system, heated and electrically adjustable sports front seats, leather upholstery and ambient interior lighting, so it’s far from bare bones.

What it does miss out on compared to the regular SQ5 is 21-inch rims (though they can be optioned for $2600), premium leather upholstery with Dinamica highlights, ventilated front seats, a head-up display, 16-speaker Bang & Olufsen audio system, aluminium roof rails and acoustic glazing for the front windows.

You also can’t option adaptive suspension or the Tech Pro package, which includes a heated steering wheel, front passenger screen, electric steering wheel adjustment, heated outboard rear seats and digital OLED taillights, but you can add the $9200 carbon style package for the exterior mirrors, door inlays and roof spoiler.

BMW’s design language hasn’t exactly been universally loved in recent years and the X3 is likely to still split opinion, but the rims, though 20s like the Audi’s, look much bigger and the Tanzanite Blue paintwork (an expensive $4000 from BMW’s Individual range – regular metallics are $2000) certainly makes it stand out more.

The other option fitted to our test car is the $2000 Enhancement Package that consists of an alarm and a 15-speaker Harman/Kardon sound system, bringing the grand total to $117,900 (plus ORCs). This makes it a decent chunk more expensive than the Edition One, but it boasts a specification list that surpasses even the fully equipped SQ5, which is significantly more expensive again.

The powered sports front seats are heated and ventilated, the outboard rear seats and steering wheel are both heated, there are adaptive LED headlights, adaptive suspension, a head-up display, M Sport body kit, panoramic glass roof (though not a sunroof), powered tailgate and standard roller blinds for the rear side windows.

Both vehicles are covered by five-year/unlimited-kilometre warranties and prepaid servicing plans are also available. BMW asks $2595 to cover the first five years or 80,000km, with the onboard computer deciding when servicing is required, whereas the Audi has fixed intervals of 12 months/15,000km (whichever comes first) but five years of coverage will set you back $3520.

Audi does include five years of roadside assistance and complimentary membership to its Audi Advantage loyalty program, while BMW limits its free roadside assistance period to three years.

There are no safety concerns here, despite the Audi SQ5 Edition One carrying a five-star ANCAP rating and the BMW X3 40d being technically ‘unrated’.

The new Q5 range was tested in 2025 and scored 85 per cent for adult occupant protection, 86 per cent for child occupant protection, 79 per cent for vulnerable road user protection, and 80 per cent for safety assist.

While the X3 is unrated by ANCAP, when tested by Euro NCAP in 2025 – the results of which ANCAP will often use as the basis for its own scores – it scored five stars with 88 per cent for adult occupant protection, 84 per cent for child occupant protection, 77 per cent for vulnerable road user protection and 80 per cent for safety assist. In other words, neck and neck with the Audi.

These similar results are largely because both vehicles are very similarly equipped, with plenty of airbags and all the latest active safety features, including adaptive cruise control with traffic jam assist, autonomous emergency braking, cross-traffic alert, lane-keeping assist and departure alert, automatic emergency services notification in the event of a collision and self-parking programs with 360-degree cameras.

There isn’t much to choose between the Audi SQ5 Edition One and BMW X3 40d when it comes to technology. Both have widescreen displays for their infotainment and digital instruments, the latter offering plenty of configurability and the former a mind-boggling array of apps and features and options.

There are personal assistants, voice recognition, inbuilt apps (Spotify, YouTube etc.), in-car gaming, smartphone app connectivity for remote vehicle functions and tracking, online traffic and parking information, to name just a few.

It’s likely most will content themselves with the wireless smartphone mirroring (Apple CarPlay and Android Auto) that both offer and each also have wireless charging along with a quartet of USB-C ports scattered throughout the cabin to keep devices topped up.

Both systems are relatively intuitive to use, especially with some familiarity, but if you’re not hugely technically literate we’d recommend getting some guidance from the relevant salespeople before you drive away in your new car.

While the Audi SQ5 Edition One and BMW X3 40d both use 3.0-litre six-cylinder engines enhanced by turbocharging and mild-hybrid technology, the one crucial difference is the pump you use at the petrol station.

The Audi’s petrol V6 produces 270kW (from 5500-6300rpm) and 550Nm (from 1700-4000rpm) and sends it through a seven-speed dual-clutch gearbox to all four wheels. This shoots it from 0-100km/h in a decidedly brisk 4.5sec – impressive for a 2040kg car.

Despite using diesel, the BMW isn’t far behind thanks to its straight-six developing 223kW (at 4000rpm) and 670Nm (from 1500-2500rpm), which moves its 1975kg from 0-100km/h in 5.4sec.

Just as the gap between diesel and petrol has decreased in terms of performance, so too has it narrowed in terms of efficiency – at least on paper. In terms of their official combined claims, it’s the diesel BMW at 6.6L/100km that has the advantage over the petrol Audi at 7.6L/100km, though the latter is very impressive given the SQ5’s performance potential.

In the real world this gap increases, and you’ll be doing well to get the X3 much beyond 10L/100km no matter how you drive it, while on a highway cruise it’ll drop well into the 5L/100km bracket and extend its touring range to well over 1000km.

Treated gently, the Audi will also sip gently, partially thanks to the 48-volt mild-hybrid system that runs various ancillaries and allows the engine to take more regular breaks when coasting. However, dip into the well of performance and the consumption can soar into the high-teens and beyond – such is the price of horsepower.

You could be forgiven for assuming that given their respective powertrains, the Audi SQ5 Edition One and BMW X3 40d occupy the roles of the sportster and the cruiser, but it’s not that simple.

The engine is the clear highlight of the Audi. Abundant torque smoothly segues into soaring top-end power that makes the SQ5 extremely potent in a straight line with a howl to match. Given the compromises inherent in a passive damper setup, the balance between handling support and ride compliance is reasonable, too.

Unfortunately, attack some corners in this speedy SQ5 and cracks begin to appear. There’s plenty of grip but the chief culprit is the steering, which feels to have too much friction in the system; to explain it more simply, when you go to turn into a corner at a decent pace, you’re left with more questions than answers from the front end, which isn’t pleasant.

It feels quite nose-led, too, in both its weight and drive bias, though a loose surface proves that it will send a decent amount of drive to the rear under power – good fun. For ambling around the suburbs, the SQ5 is perfectly fine, but presumably buyers will be after a bit more than this for their outlay.

The biggest bugbear with the BMW is an overly firm ride that constantly relays road imperfections back to the occupants. It’s not terrible and some may even like the extra connection, but for a luxury family car, a little more relaxation would be appreciated.

This aside, it’s an incredibly polished and enjoyable machine to drive. The diesel doesn’t have the same rev ceiling as the Audi’s petrol V6 but keep grabbing gears and the X3 continues to surge forward relentlessly with a nice growl.

Its steering doesn’t provide a lot of communication either, but it’s more precise than the Audi’s and there’s a lovely poise that reminds you why BMW was for so long the most dynamic of the German big three. This accuracy – and the easygoing torque – also makes the X3 an easy car to drive in day-to-day running.

Audi built its reputation on high quality, well-designed interiors which only makes the cabin of the SQ5 Edition One more of a disappointment. Plenty of hard plastics, swathes of easily marked piano black and unsatisfying haptic controls give it the feel of an interior that’s had cost pulled out.

There are high points: the seats are good, the S-Line sports steering wheel lifts the ambience and the silver strips are cold to the touch, but in general it doesn’t feel like a premium environment. While it’s not the variant we have on test, it seems the standard SQ5 replaces some of the interior materials for the better.

There’s evidence of BMW pinching a few pennies in the X3, too, with hard plastic easier to find than you’d hope and the eradication of most of the switchgear. This can be navigated with familiarity – there are little shortcut buttons dotted around the cabin that will take you to the lighting or seating or drive mode menus – it would be helpful if they were still there to begin with. The Audi does a slightly better job in this regard but is still too reliant on its screens for basic functions.

Aside from a too-fat steering wheel, the X3 has the nicer cabin, however, and there’s acres of space in the rear as well as a 570-litre boot, which expands to 1700L with the rear seats folded.

The SQ5 offers 520L, though this can be increased by sliding the rear bench forward, or 1423L with the rear seats folded. Space in the rear is adequate, but not as accommodating as the BMW.

Hopefully by this point the answer to this question is clear. If you’re interested in an Audi SQ5 the regular version is a better bet, with a specification list and interior that’s closer to what most would expect of the brand, though optioned to its best it’s a $135,000-plus proposition before on-road costs.

Of the two cars we have here, the only area the Audi has the upper hand in is outright power and acceleration. The BMW is slightly more expensive but better equipped, more spacious, has a nicer interior, superior driving dynamics, greater efficiency and is cheaper to service.

And while it can’t match the Audi in a straight line, that stonking diesel means it’s still no slouch. BMW wins.

2026 Audi SQ5 Edition One at a glance:
Price: $106,400 (plus on-road costs)
Available: Now
Powertrain: 3.0-litre turbo-petrol V6 mild-hybrid
Outputs: 270kW/550Nm
Transmission: Seven-speed dual-clutch
Fuel: 7.6L/100km (ADR Combined)
CO2: 172g/km (ADR Combined)
Safety Rating: Five-star (ANCAP 2025)

2026 BMW X3 40d at a glance:
Price: $111,900 (plus on-road costs)
Available: Now
Powertrain: 3.0-litre turbo-diesel inline six-cylinder mild-hybrid
Outputs: 223kW/670Nm
Transmission: Eight-speed automatic
Fuel: 6.6L/100km (ADR Combined)
CO2: 173g/km (ADR Combined)
Safety Rating: Unrated

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