Intro
Hi guys, and welcome back to Petrolhead Podcasts. The all-new 2025 Audi Q5 is an incredibly important model for Audi. In an automotive industry where an all-electric transition is occurring slower than expected, having up-to-date and appealing internal combustion engine models are essential for the brand to maintain sales for the short and medium term. And as the company’s best seller globally, these expectations are amplified for the new Q5. So, how good is the new Q5, and is it the best gas powered compact luxury SUV money can buy? Join me as I go through an in-depth comparison to give you the answer. Today, we will be comparing the top-of-the-line, all-new 2025 Audi SQ5, which has a starting MSRP of $66,095, against its two arch rivals, namely the 2025 BMW X3 M50, with a starting MSRP of $65,875, and the 2025 Mercedes-AMG GLC 43, which has a starting MSRP of $68,250.
Exterior Styling
The new Audi Q5 looks great. Up front the slim headlights, aggressive side curtains and the latest iteration of the Audi u-shaped grill give the vehicle a modern and sophisticated appearance. Sadly there are no notable styling changes for the SQ5 compared to the regular Q5. On the side the Q5’s proportions are similar to the outgoing model, and the upright stance looks good even if the general design feels a little plain. Round back the fullwidth taillights look futuristic and the aggressive bumper design gives the vehicle a sporty feel. However, just like up front, there are no major changes compared to the normal Q5. The new BMW X3 looks chiseled and squared off. The overall proportions of the car, being slightly longer, wider and lower than the previous X3, gives it a more athletic stance than before. Up front, while the general design is good, I don’t like how the headlights merge sharply into the signature BMW kidney grill, and sadly the iconic dual BMW headlights have been simplified to be just a single lens. The horizontal slats in the kidney grill on the M50 model look good and better than the grill on the lower-trim models. On the side, the clean and monolithic surfacing gives the X3 a modern and powerful appearance, but the rear overhang looks extremely bulky. Round back, the new taillights reminiscent of the ones on the X5 look great, and the relocation of the number plate to the lower bumper gives the car a sportier appearance. A nice touch are the quad exhaust pipes which are exclusive to the M50. Moving on to the Mercedes, and the current generation GLC is a very elegant looking SUV with great proportions and a powerful stance. Up front, the design looks cohesive and upmarket, with the large AMG Panamericana-style grill, combined with the attractive headlight design, and a very aggressive lower grill design that is shared with the more expensive GLC 63. On the side, the GLC looks similar to the previous generation model, but nice refinements such as the smooth surfacing and the subtly bulged wheel arches continue the elegant theme. Round back the slim taillights look a bit plain, but are effective. The quad exhaust tips, just like on the BMW, gives the GLC a menacing appearance. Overall in terms of styling the GLC 43 is the winner for me, as it looks the most special and most removed from the regular version. The SQ5 is second, with a modern and sophisticated look but is too similar to the regular Q5. In last is the X3 which feels bulky and has some controversial design elements.

2025 Mercedes-AMG GLC 43

2025 Audi SQ5

2025 BMW X3 M50
Interiors
The Audi SQ5 is a mixed bag. The new generation Audi interior impresses at first glance with the multitude of screens, with a 11.9 inch instrument cluster and a 14.5 inch infotainment display, and the available passenger screen and augmented reality head-up display. Ambient lighting has also been upgraded to provide a more impressive design. However, having spent a lot of time recently driving an Audi Q6 e-tron for another review, a car which shares many of the same technologies, materials and interior layout as the new Q5, I have to say that the new generation Audi interiors are a disappointment in a number of ways. First of all, while build quality is still excellent, material quality is average, with a lot of piano black trim around the center console that scratches easily and leaves a lot of fingerprints. The new control panel that houses the lighting as well as mirror controls on the driver’s side door is very bulky and feels cheap as it is just a single piece of capacitive touch controls. There is also a surprising amount of hard plastics, especially on the lower parts of the dashboard and door cards, that is disappointing. The screens, while a big step up compared to before, are ergonomically not the best implementation either, with a lot of fixed shortcut buttons on the left that greatly reduce the usable display area, as well as massive bezels. In terms of practicality, while U.S. standard measurements have not been released, European figures indicate the Audi will have less cargo volume than both the Mercedes and BMW. The BMW X3 has taken a notable step backwards compared to the previous generation X3. On the positive side, the new ambient lighting with the interaction bar and glass controls shared with the 5 and 7 Series gives it a modern and upmarket feel, and the vehicle finally receives the BMW curved display setup with iDrive 9, which remains one of the best infotainment systems in the industry. However, the abundance of cost-cutting in the interior is unacceptable. There are a lot more hard touch plastics on the dashboard compared to the previous generation, there is no longer a cover over the central storage area, no door sill labels, no wood or metal trim on the passenger side dashboard, the door handles have been downgraded from metal to plastic, the ambient lighting strip on the rear doors has been removed and the panoramic sunroof also no longer opens. Unfortunately, this is just a partial list of the extensive cost-cutting that has taken place. From a practicality standpoint though, the X3 remains good, with a class-leading 67.1 cubic feet of space behind the front seats, 40.2 inches of front legroom, and 36.3 inches of rear legroom. Moving on to the Mercedes, and the GLC impresses with a modern and impressive-looking dashboard. The newly added MBUX 3 system for the 2025 model year is a welcome upgrade, although the large bezels surrounding the screen do feel slightly dated. The waterfall-like center console looks expensive, and the striped wood trim covering the center console and passenger dashboard lifted from the S-Class gives the car and expensive feeling. The materials in general are nice, with features not available on the X3 such as an opening sunroof, power-adjustment for the front seat headrests and thigh extension, a power-adjustable steering wheel and the best ambient lighting in this segment all combining to provide an experience that feels more upmarket than the BMW. While the GLC shares a dashboard design with the C-Class, the GLC actually has nicer materials on the lower parts of the dashboard, that makes it noticeably more premium-feeling than the C-Class. There are downsides, such as some of the trim pieces feeling low quality, some of the Haptic Touch controls not easy enough to use, and the build quality being slightly worse than the BMW and Audi, but overall, the Mercedes feels like a more expensive cabin than the BMW and Audi and befits the price point better. The GLC’s practicality is decent, with a maximum of 56.3 cubic feet of space behind the front seats, 40.7 inches of front legroom, and 37.4 inches of rear legroom. Overall for interiors, the best of the three is the Mercedes. The GLC has better interior materials than the Audi and BMW and a more upmarket design that makes it feel more premium. However, the build quality is not the best and the technology feels slightly dated. In second is the Audi. The Q5 also has good levels of technology and a modern design. However, it feels cheap inside compared to older Audi models, the technology implementation is lacklustre, and practicality is not the best. In last place is the BMW. The X3 has class-leading practicality, great technology, and solid build quality. However, many of the interior materials feel very cheap and the cost-cutting compared to older BMW’s is extremely evident.

The Mercedes’ interior feels the most premium

The new Q5’s interior is an ergonomic nightmare in some areas

The BMW’s interior feels very cheap for the price
Drivetrains
The Audi SQ5 has a 3 litre turbocharged V6 engine producing 362 horsepower and 402 pound feet of torque. Sadly no mild hybrid system is available for the North American market. This is mated to a 7-speed dual-clutch transmission sending power through Audi’s Quattro all-wheel drive system. The SQ5 rides on height-adjustable air suspension with adaptive damping. The SQ5 accelerates from 0 to 60 MPH in 4.5 seconds and combined economy ratings have not been released but the outgoing model with a similar drivetrain setup achieved 21 MPG. The BMW X3 M50 has a 3 litre turbocharged inline-6 cylinder engine with a 48-volt mild hybrid system that develops 393 horsepower and 428 pound feet of torque. This is mated to an 8-speed automatic transmission sending power through BMW’s xDrive rear-biased all-wheel drive system. The X3 rides on fixed steel suspension with adaptive damping and has a limited slip rear differential. The X3 accelerates from 0 to 60 MPH in 4.4 seconds and achieves a combined economy rating of 27 MPG. The Mercedes GLC 43 has a 2 litre turbocharged 4-cylinder engine with a 48-volt mild-hybrid system that develops 416 horsepower and 369 pound feet of torque. The GLC rides on fixed steel suspension with adaptive damping, torque vectoring and rear-wheel steering. The GLC 43 accelerates from 0 to 60 MPH in 4.7 seconds and achieves a combined economy rating of 21 MPG. In terms of drivetrains, the best of the three is the BMW, which is the fastest to accelerate, the most torque, and has the best fuel economy. The Audi is second, with advantages including a 6-cylinder engine, air suspension and a faster acceleration time compared to the Mercedes.

The BMW’s engine and transmission combination is the benchmark in the segment

The SQ5’s V6 engine and air suspension are the highlights of its drivetrain

The GLC 43 has a 2.0 turbo inline-4 cylinder engine
Driving Experience
The new Audi SQ5 is decent but not spectacular. The V6 engine feels powerful and refined and is matched to a fast-shifting dual-clutch transmission. However, the drivetrain cannot match the BMW’s inline 6 for smoothness and response. The air suspension of the Q5, does give it a slight edge in terms of ride quality compared to the other two cars, but however, the difference is not huge since the suspension has been tuned with sportiness as a priority. The Audi lacks the overtly rear-wheel drive bias of the other two cars and feels the least engaging to drive, even if in isolation the vehicle handles decently and has very linear and precise steering. The BMW X3 drives great for a luxury compact SUV. The X3’s centerpiece is the venerable BMW B58 inline-6 cylinder engine, which is extremely smooth, linear and has a sonorous sound track. The mild-hybrid system adds to the smoothness and results in an unobtrusive stop-start system. Furthermore, with the 2025 updates, the X3’s balance of comfort and sportiness has been further enhanced. The steering, while not quite as linear and direct as the Audi, is improved compared to the previous model, while the suspension feels more comfortable yet still retains excellent body control and agility, with a rear-biased and playful feel to the experience. However, overall the BMW still feels less comfortable than the other two cars, and does not feel as agile as the Mercedes. The Mercedes has a surprisingly good driving experience. While the 4-cylinder engine and 9-speed transmission are no match for the BMW’s inline 6 and 8-speed automatic in terms of smoothness and engagement and feels more strained, the ride and handling of the Mercedes are very good. The lack of a 6-cylinder means the front axle of the GLC feels lighter than the other two cars, which, combined with a great adaptive damping suspension, rear-biased all-wheel drive, and the only rear-wheel steering system of the three, makes the GLC feel more agile in the corners than the Audi and BMW. This is combined with a ride quality that is decently comfortable and good steering. Overall, the BMW and Mercedes are both very accomplished in terms of driving experience. The BMW stands out with its masterpiece of an engine, while the Mercedes handles the best of the three. The Audi, while still very good, ultimately does not feel as engaging or exciting to drive as the BMW or Mercedes.

The centerpiece of the BMW’s driving experience is the inline-6 cylinder engine

The rear-wheel steering of the Mercedes gives it added agility compared to the BMW and Audi

The SQ5 is the least engaging to drive of the three
Conclusion
So overall, which is the best performance luxury compact SUV of the three? I want to start by saying the personally, as I owned the previous-generation X3 and have followed developments in this segment closely over the past few years, I feel that all three cars could be better, especially when comparing their interior quality to the previous generation models. With that being said, personally, out of the three, the Mercedes is the winner. The GLC 43 has excellent handling, the interior feels more expensive than the Audi and BMW, and it also looks modern and sporty. However, the 4-cylinder engine is not the most entertaining, the technology is beginning to feel dated, and the build quality cannot match the other two cars. The BMW takes second. The new X3 has the best engine of the three cars that returns class-leading performance and economy, great practicality and technology, and a much better balance between comfort and sportiness than before. However, the styling is divisive, and the interior feels seriously cheapened-out compared to the previous generation. In last place is the Audi. The new Q5 looks great and has a good blend between ride and handling. Unfortunately, it feels the least exciting to drive, the interior feels cheapened out, and the technology implementation is not the best.
