Under the hood, the 2026 Audi Q5 will be powered by a range of 2.0-litre four-cylinder turbocharged engines, all featuring MHEV Plus (Mild Hybrid Electric Vehicle) technology. This system uses a small 1.7kWh lithium-ion battery and a powertrain generator that adds up to 24hp and 230Nm of torque in short bursts. The primary engine for India is expected to be the 2.0-litre TFSI petrol motor, which is likely to produce around 204hp and 340Nm of torque. There is also a strong possibility that Audi will continue to offer the 2.0-litre TDI diesel engine, which remains popular among long-distance luxury buyers in India, producing a similar 204hp output but with a higher torque rating of 400Nm. Both engines will be paired with a seven-speed S-tronic dual-clutch transmission as standard. The Quattro all-wheel-drive system will be available across most variants, providing better grip in monsoon conditions and on light trails. The 48V mild-hybrid system not only assists in acceleration but also allows for smoother start-stop transitions and enables the car to coast with the engine off at certain speeds. While a full electric version is not part of this specific lineup, the hybrid components are designed to improve overall fuel efficiency by roughly 10% compared to the older non-hybrid engines.

The interior of the 2026 Audi Q5 is a radical departure from the physical button-heavy layout of the previous generation. It features what Audi calls the ‘Digital Stage’ which consists of a massive curved OLED display. This setup includes an 11.9-inch Audi Virtual Cockpit for the driver and a 14.5-inch MMI touch display for the main infotainment duties. Reports suggest that a third 10.9-inch display for the front passenger could also be offered, allowing the co-driver to manage navigation or stream media without distracting the driver. The cabin materials have been upgraded to include more sustainable options like Dinamica microfiber and recycled fabrics, moving away from heavy use of natural leather. Practicality remains a priority, with the rear bench expected to offer slide and tilt functions to balance passenger legroom with luggage space. The boot capacity is likely to hover around 520 litres, expandable to over 1,400 litres with the seats folded. Tech features will include a 16-speaker Bang & Olufsen 3D premium sound system, multi-zone climate control, and a redesigned center console that replaces the traditional gear lever with a compact toggle switch. The ambient lighting system is also more integrated, wrapping around the dashboard and doors to create a sense of width.

The exterior of the 2026 Audi Q5 marks a move towards a more muscular and aerodynamic silhouette compared to the outgoing model. At the front, the SUV features a revised Singleframe grille that is wider and sits slightly higher, flanked by slimmer Matrix LED headlights. These headlights are expected to offer customizable light signatures, allowing owners to choose between different DRL patterns via the infotainment system. The side profile reveals a more pronounced shoulder line and a cleaner glasshouse area, with wheel sizes likely ranging from 18 inches on the base trims to 21 inches on the top-spec variants. One of the biggest changes is at the rear, where the Q5 adopts second-generation digital OLED tail lights. These lights are not just for aesthetics; they can communicate with other road users by displaying warning symbols during emergencies or heavy braking. The overall length and wheelbase are expected to increase slightly, which provides a more planted stance on the road while improving internal room. Audi has also worked on reducing the drag coefficient to improve highway efficiency, making the body smoother with redesigned bumpers and functional air curtains. The paint palette for India may include new metallic shades like Grenadine Red and Tambora Grey, alongside the traditional whites and blacks.

The 2026 Audi Q5 enters a segment that is one of the most hotly contested in the Indian luxury market. Its primary rival is the Mercedes-Benz GLC, which currently holds a strong position due to its plush interior and brand pull. The GLC is priced between ₹75 lakh and ₹77 lakh, making the Q5's expected ₹70 lakh starting price a strategic move. Another major competitor is the BMW X3, which is also due for a generation change soon. The BMW focuses more on driving dynamics and a sporty feel, whereas the Audi aims for a middle ground of comfort and technology. The Volvo XC60 is another rival that appeals to buyers who prioritize safety and minimalist Scandinavian design, though it is only available with a petrol mild-hybrid engine. Land Rover’s Discovery Sport also competes in this space, offering superior off-road capability, though it lacks the high-tech curved display setup found in the new Audi. The Q5 will need to rely on its superior lighting technology and the new "Digital Stage" cabin to differentiate itself from these established players.