SPY PICS: Audi Q2

Spied testing in Scandinavia as it readies for a glitzy premiere in March, the new Audi Q2 compact SUV could be a game-changer not only for the brand, but for the prestige market as a whole.

Scheduled to arrive in European new car showrooms around mid-2016 ahead of an Australian debut early in 2017, the Q2 has the potential to become one of Audi’s best sellers.

The SUV underneath the camouflage is understood to be wearing the production bodywork that will be revealed just before the 2016 Geneva motor show in March.

Measuring around 4.2 metres in length and offered with a range of small capacity, fuel-efficient engines, the compact SUV will be pitched at buyers who may never have considered an Audi before, and its price will reflect this, starting potentially under $40,000.

Ignore the camouflage materials and it’s clear the headlights of this Audi Q2 are not Xenon or LED, hinting at a bargain-basement entry-level model, that could compete price-wise with SUVs from non-luxury brands.

The design appears somewhat dowdy but Audi has said from the start that the Q2 will spearhead a more radical design direction for the brand and as such it's likely to be look sportier and more stylised without its camo clothes; important if Audi wants to use it to attract younger buyers to the brand.

There's hints of this avant garde design in the sloping rear windscreen and integrated roof spoiler and it's likely the hidden brake lights will add visual intrigue for passersby.

As well as stripped-out versions at affordable prices, expect the Q2 to come with the usual high-tech and luxury options available in a prestige car. Later in the car's life there's also the possibility of high-performance variants, possibly called the SQ2.

Entry-level versions of the Q2, which rides on the Volkswagen Group's MQB platform, will be front-wheel drive and there's no guarantee of any AWD models. Expect plug-in hybrid versions too, bearing e-tron badges.

Audi has already conducted high-speed handling tests of the Q2 at the Nurburgring and the latest testing in icy conditions is to ensure the vehicle functions properly in extreme weather conditions.

One major question still hangs over Audi's new baby SUV, however -- the dispute with Fiat's Alfa brand, which owns the rights to the Q2 name. That could force Audi to apply the Q1 badge it originally announced earlier this year, when it confirmed that Q6 and Q8 crossovers will be forthcoming.