2026 BMW X3 M50 vs. Audi SQ5

If your SUV must have 3.0-litres, six cylinders and almost 400hp, which should it be?

By Matt Bird / Saturday, 14 March 2026 / Loading comments

Hang on, you’re already thinking, this is PH - surely the twin test of 3.0-litre, four-wheel drive family cars ought to be fast estates? Well perhaps, but the 3 Series as we know it isn’t long for this world, and we’ve already tested the S5 Avant against another quick and big alternative. So it’s SUVs this time around. Let’s not ignore the fact, either, that cars like the X3 M50 and SQ5 probably represent the core performance product these days: the former was BMW’s best selling car with the M tricolour in 2025, and you only need look around one Waitrose car park to see how popular the Audi has been regardless of powertrain. Having been launched as far back as 2013 with a V6 diesel, the SQ5 badge in all its forms has outlasted the S7 nomenclature and - assuming the Limited is the end of the line - perhaps the RS3 also. These cars matter, like it or not, so it would be remiss not to establish which is better. Then you’ll know who at the kids’ rugby club has made the smarter choice…

Plus, well, there’s a lot to like on paper about the packages. An SQ5 isn’t very much heavier than an S5 Avant (honest), both boast mild hybrid turbo sixes that can officially claim more than 30mpg (without adding half a tonne of PHEV faff to proceedings), the BMW has a bigger seats-up boot than an M5 Touring (as well as the best engine ever, says YouTube), and the Audi can be had with some very fetching red leather. With another X3 M unlikely and an RS Q5 having never happened, this is good as it gets in 2026. So how good, exactly, is that?

Full disclosure from the off: thanks to an assortment of logistical hurdles, we didn’t have an abundance of time with these two. This was not one of those super SUV assessments that takes in everything from the dog walk to the drag strip, sadly. But it was enough to glean some useful impressions of both. The easiest of those to take away are the styling impressions; from here it’s still hard to work out if the Q5 is one of those classically restrained, handsome Audi designs - or just a bit old and plain. Certainly it doesn’t look, from the outside, a whole lot more modern than the old car, with more than a bit of e-tron (launched back in 2019) to the rear. It seems crying out for some snazzier wheels, a bit of pizzazz to make it £75k desirable. There’s a fine line between suave understatement and slightly forgettable which the SQ5 doesn’t fall on the good side of. It’s under the radar, at least - fast Audis that don’t crow about the fact do still exist, and that’s nice.

Which is more than can be said for the X3. In terms of proportions it’s arguably better conceived than the Audi, cab more rearward, roof appearing lower and stance broader, though there’s plenty of less positive stuff as well. There’s yet to be an illuminated grille that doesn’t look like a bad Christmas decoration, the light design is just weird, and the overall vibe is much more overt than the old X3 M40i. And not in a good way. It’s at least in keeping with the rest of the M car offering right now. Which also looks strange.

The inside of the BMW is a similarly mixed bag. It does glitz and glamour better than most, with vivid, slick, responsive screens and acres of smart fabric across the dash. The initial touchpoints - wheel, iDrive controller, seat - are good. But it really doesn’t take long to find much cheaper fixtures and fittings, from window switches to air vents, door handles to storage lids. In the week BMW announced a reduction in expenses of €2.5 billion - “by reducing R&D expenditure, sales and administrative expenses as well as manufacturing and material costs”, said the board member for finance - you can tell costs have been cut in this X3 interior. Having co-owned a previous-gen G01 M40i, what it lost in wow factor it more than made up for in solidity. Little features like getting rid of the keyless entry functionality on the rear doors (you know, where kids might go in first) would surely grate over time.

Fortunately for the BMW, it isn’t like the Audi feels tangibly better built, driver’s bolster creased after 10,000 miles and buttons lacking substance. On this brief experience, its multiplex of screens were harder to navigate than the X3’s, and the displays not quite as sharp. While an issue far from unique to the Audi, nobody needs to be surrounded by so much information when driving.

Speaking of which, the important stuff. It’s a lot easier to overlook interior gripes and odd styling if the drive is sorted and, wouldn’t you know, the BMW is really very good indeed. It’s mature and it’s sophisticated, yes, but there’s also something very satisfying about the cohesion of its control weights, the way it feels so balanced between the axles, and the rear driven nature of xDrive. It really doesn’t take long to be confident at a spirited pace in the M50, such is the assuredness of the damping in either mode (optionally adaptive, which is cheeky), the weight of the brake pedal, and the perfect relationship between steering input and front axle response. But you’re enjoying the process as well, because the X3 feels enthusiastic and willing to be driven hard, as any car carrying the M badge - regardless of shape or size - ought to. With decent refinement for the sensible miles, too.

While the Audi can get down a road at similar speed, with comparable grip, braking performance and acceleration, it’s a more aloof and disconnected experience. Having driven the car a bit more, Nic C points to a general lack of finesse to the SQ5, and that hits the nail on the head: wheel and body control is laxer regardless of what you do with drive select, steering vaguer, brakes grabbier. It’s those fundamentals that can make even slow speed driving enjoyable (and which are really exposed when trying a bit harder) that the Audi falls short on. Air suspension on this Launch Edition means the SQ5 is comfy enough, though some way from exceptional.

Similarly, while these two are close in terms of headline stats, the experience is more enjoyable in the X3. The Audi snaps though its seven short DCT ratios eagerly, so it initially feels as fast, though it’s the barrel chested Beemer that always seems punchier when it comes to roll on performance. Both definitely benefit from some mild hybrid help, quelling lag and aiding mpg, yet with - you guessed it - the BMW’s installation feeling superior. The Audi can hesitate and stutter as it hands over to the engine at traffic jam speeds, which doesn’t happen in the X3. Perhaps making the technology work with a dual-clutch transmission is harder than with a traditional torque converter. But make no mistake: while having a petrol SQ5 back is welcome, the straight six setup in the BMW is sweeter sounding, more powerful and just as efficient.

Overall, these two present as a BMW M Performance flagship that’s had some time and effort expended on every aspect of the driving experience, and a Q5 with a big V6 in it. Which doesn’t make the latter necessarily a bad car, but it misses out on any of the connection that marks out a proper performance derivative. We’re not talking about Caterham levels of sensory overload here, obviously; it’s just the BMW demonstrates that everyday appropriateness doesn’t have to be at the expense of some driver engagement. And that should matter when putting these badges on these cars. Or otherwise you’d just have the 2.0-litre hybrid and save a packet.

As it is, the X3 M50 makes a significantly more convincing case for itself here than the SQ5, and must be the winner of the test. Its powertrain feels better calibrated, its chassis more capable, its interior less irksome. This is some way from a totally comprehensive victory for the BMW, however, as like the Audi it doesn’t do enough to make any owner of an old one feel compelled to upgrade. That seems to be happening quite a lot at the moment. While undoubtedly better to drive than last time around, the X3 undoes that hard work with a not-quite-good-enough interior and awkward styling. In 2026 it’s already thousands more expensive than it was at launch last year, too.

The Audi’s driving environment is confusing, and the petrol V6 isn’t likeable enough to offset what would be lost in mpg to the old TDI. At more than £75,000 as tested, both of these cars have flaws that shouldn’t really be there. If a lease is up on either, then it’s the X3 that should be sought out as a replacement, because it has a fantastic engine and drives really well. But if you own either an old SQ5 or X3 M40i, something that’s a few years old and probably worth half as much at trade-in, don’t rush to change. The simple fact is that these aren’t yet improved enough to make the expensive swap worthwhile.

SPECIFICATION | 2026 BMW X3 M50

Engine: 2,998cc, straight six petrol
Transmission: 8-speed auto, four-wheel drive
Power (hp): 398@5,200-6,250rpm
Torque (lb ft): 428@1,900-4,800rpm
0-62mph: 4.6 seconds
Top speed: 155mph
Weight: 1,980kg (DIN)
MPG: 35.8 (WLTP)
CO2: 179g/km (WLTP)
Price: £73,715 (price as standard; price as tested £84,125 comprising Tanzanite Blue paint for £1,725, 21-inch Style 1027 Bicolour wheels for £850, Technology Pack (Driving Assistant Professional, Live Cockpit Pro with Head Up Display, Interior Camera, Parking Assistant Plus) for £2,960, Comfort Pack (Front lumbar support, Travel and Comfort System, Harmon/Kardon Surround Sound) for £850, Comfort Plus (Front and rear heated seats, Ventilated front seats, Rear blinds in addition to Comfort Pack), Panoramic roof for £1,350, Luxury instrument panel for £450, Heated steering wheel for £250, Driving Assistant Professional for £1,275, M Adaptive Suspension for £625)

SPECIFICATION | 2025 AUDI SQ5 FIRST EDITION

Engine: 2992cc V6, twin-turbocharged
Transmission: 7-speed, twin-clutch auto, all-wheel drive
Power (hp): 367@5,500-6,300rpm
Torque (lb ft): 406@1,700-4,000rpm
0-62mph: 4.5 sec
Top speed: 155mph
Weight: 2,040kg
MPG: 33.6
CO2: 190g/km
Price: £76,525 (SQ5 range from £72,825)