Audi has unveiled the next iteration of its best-selling model, the Q5.

The SUV, which made up 17% (334,480) of Audi’s total global sales last year, will be used to anchor the brand as it shifts away from combustion engines and into electric cars.

Unlike the new A5 saloon and A5 Avant estate, the third-generation Audi Q5 won’t be offered with a pure combustion engine.

Instead, power will come initially from a range of mild hybrids – two petrol and one diesel – before the line-up expands to include plug-in hybrids.

The launch range opens with a 2.0-litre turbo petrol four that sends 201bhp and 251lb ft through the front wheels. Four-wheel drive is offered as an option.

The diesel matches this for capacity and power output but has a 44lb ft torque advantage and four-wheel drive as standard.

The range-topping SQ5 has swapped diesel power for an all-new mild-hybrid 3.0-litre turbo petrol V6 with 362bhp – an increase of 20bhp. 

Two plug-in hybrids, with 295bhp and 362bhp plus electric-only ranges of around 50 miles, will follow next year. 

Audi’s renewed investment in hybrid powertrains is because the transition to electric cars is taking longer than had initially been expected.

It still plans to phase out ICE cars in eight years, though, meaning this Mk3 will be the last non-electric Q5. It has committed to offering a hybrid option in each segment until then.

“We recognised early on that plug-in hybrids were a relevant project technology, and now we see that the bridge is longer than we initially thought,” said Audi CEO Gernot Döllner.

Premium Platform Combustion (PPC) that underpins the Q5. Its electrical architecture represents a significant upgrade – a complete wiring overhaul and now using five on-board computers – on the old Q5’s MLB Evo platform.

That gives Audi more flexibility to offer hybrids with different configurations and opens the door to key future upgrades.

It’s understood, for example, that the PPC can support range-extender powertrains yet can also accommodate a V8 engine, hinting at the future of the larger Q7 and the prospect of a new RS model.

Audi says the new platform also brings improvements to both ride comfort and handling. The new Q5 is fitted with steel springs and passive dampers as standard, while air suspension is available as an option.

As well as the technical overhaul, the Q5 features a noticeably more modern interior.

It follows the A5 and the Q6 in adopting Audi’s new ‘Digital Stage’ set-up: a free-standing OLED panel that comprises an 11.9in digital instrument display and a 14.5in infotainment touchscreen. A 10.9in touchscreen for the front passenger is optional.

UK pricing has yet to be announced, but the first cars are scheduled to land in showrooms in March. In mainland Europe, the entry-level petrol car is €52,300 (£44,300) and the diesel is €57,100 (£48,400), while the SQ5 is €82,900 (£70,200).

New Audi Q5 Sportback imminent

A coupé-roofed Sportback version of the new Q5 will arrive shortly after the regular SUV.

Prototypes with plug-in hybrid powertrains have now been spotted testing in Germany, suggesting the new engine and body options could arrive at the same time.

Expect slightly better fuel economy and improved electric-only range in exchange for reduced boot space and a modest rise in price.