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News - Market Insight - Market Insight 2025Market Insight: Q5 Australia's favourite AudiAudi says it must maintain premium customer experience to keep Q5 as brand cornerstone1 Sep 2025 By MATT BROGAN AUDI has launched the third-generation Q5 into the Australian market this week, the comprehensively redesigned and reengineered mid-sized SUV poised to continue as the German importer’s best-selling model.
Buoyed by a new platform, revised mild-hybrid engines and a gamut of new technology, the latest Q5 is backed by a customer experience model Audi says help it return customers to the brand with each new-generation model.
Historically, the Q5 has been Audi Australia’s strongest seller, with more than 50,000 units delivered since the nameplate debuted in 2010.
It regularly takes fourth place on the segment sales chart, vying against the likes of the BMW X3, Lexus NX, and Mercedes-Benz GLC, rivals Audi considers its closest competitors.
Speaking with GoAuto at the launch of the new Q5 and SQ5 in Queensland, Audi Australia head of product Matt Dale said the company was “extremely positive about the new car because we’ve been waiting for it for some time”.
“Obviously, the outgoing Q5 has had a longer model lifecycle (than is typical), almost nine years. So, there is real opportunity with this all-new model that represents a pivotal change in the segment.”
Reiterating the changes in platform, engine technology, connectivity, and safety the new Q5 introduces, Mr Dale said it was critical that Audi moved the segment forward, while at the same time meeting customer expectations.
“There is a level of sophistication that only comes with a premium product,” he added.
“That’s something we see as an opportunity, (a way to) position the car accordingly in the market, and to continue what is quite a significant history with the Q5 product.
“It represents over 20 per cent of our overall sales mix and is a very important model for us. We believe its positioning in the marketplace versus our relevant competitors makes it a very hotly contested proposition.”
While Mr Dale would not be drawn on sales forecasts for the new Q5, he said the momentum carried by the model could be expected to increase as the age of the model’s direct competition grows.
“We’ve got over 50,000 customers in the Australian market with Q5s, that’s a great opportunity for the new car. A lot of our customers are repeat purchasers … and this (new model) provides a great opportunity to bring them into an all-new generation car,” he told GoAuto.
“There is scope to extend that as well – with the freshest model in the portfolio, there is an opportunity to broaden our scope. While talking to loyal customers that have traditionally bought in the segment, there is an opportunity to draw new customers as well.
“Of course, we have a saturated market with over 64 brands now – and there are more coming. We have to stand out as a brand, we have to continue to offer a customer experience that attracts new buyers. Every touchpoint is about giving Audi customers a premium experience.”
Mr Dale said it has been the case previously that customers “move up” from a mainstream brand when the time is right, suggesting models like the Q5 continue to remain an aspirational purchase for many Australia, buyers.
“We also see an opportunity with those customers coming up from mainstream brands, and we do see people who cross shop from other premium brands. We have to make sure we are attractive to those buyers … we have to continue to offer a premium experience,” he concluded.
Audi Q5 sales versus key segment rivals*:
*Sales figures supplied by the FCAI  Read more1st of August 2025  Ruggedised Audi A4 Allroad axedAudi A4 Allroad cut from the line-up as sales slow to a trickle30th of July 2025  Audi Q5 and SQ5 priced for AustraliaThird-generation Audi Q5 and SQ5 SUV range now available from $81,000 + ORC24th of July 2025  Axe falls on Audi S8Audi drops S8 from line-up after just three units are sold across 2025; Mercedes-Benz S-Class safe |
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