A lot has changed since the first Audi SQ5 arrived in Australia back in 2013.

Back then there was little to predict that a turbo diesel SUV with a sporty character and a $90k price tag would become one of the most popular luxury vehicles in the country. But that's what happened - at one stage the SQ5 accounted for one in three all new Q5 models sold.

It helped open up the market for new contenders to push the performance and price of mid-size luxury SUVs; witness the new Mercedes-AMG GLC 43, Jaguar F-Pace and Range Rover Velar, to name a few.

But Audi hasn't sat on its hands and the all-new SQ5 has just arrived in Australia offering the same blend of practicality and performance the old model offered, but with a twist. Instead of the turbo diesel V6, the new SQ5 is powered by a 3.0-litre turbocharged petrol V6.

It's the same engine already found in the S4 and S5, producing 260kW of power and 500Nm of torque. Like its sedan/coupe/cabriolet and Sportback siblings, the SQ5's V6 is mated to an eight-speed automatic transmission and Audi's quattro all-wheel drive system.

Also like the new A4/A5 range the Q5 is based on the Volkswagen Group's latest 'MLB Evo' underpinnings, which means it is bigger but lighter and stronger than the old model, which first launched back in 2009.

So has Audi done enough to make this new model appealing against its increased competition?

Our first impressions after driving it in Australia are positive, as it still feels like a quick and capable performance SUV. But that's not to say it's perfect.

The new engine offers up plenty of performance and it makes a nice V6 growl under acceleration that gives it a suitable soundtrack. But there's no escaping it offers up 150Nm less torque than the TDI model it replaces.

It lacks the same punch off the mark and through the mid-range that the previous diesel model offered. Yes, it's still quick - sprinting from 0-100km/h in 5.4 seconds - but the SQ5 TDI did it in 5.1secs.

The eight-speed auto does a nice job too, keeping the engine bubbling along and shifting smoothly between ratios.

In terms of handling, it's hard to make a definitive verdict as our drive didn't take in enough variety of corners to fully analyze the SQ5's finer details. However, our drive did give us a good idea of its character and it is clearly performance biased.

Our test car was fitted with both of the key optional dynamic components - the adaptive air suspension ($2150) and quattro sports differential ($2950).

The adaptive suspension allows you to alter the firmness of the ride via the Audi Drive Select system, which also adjusts the responsiveness of the drivetrain and steering. Even on the Comfort setting it is still a firm ride and when you switch it into the stiffer Sport setting it be a little unforgiving over bumps at times.

We weren't able to drive an SQ5 on the standard suspension set-up, which still incorporates adaptive dampers but misses out on the more sophisticated air springs.

But the adaptive air suspension does help the SQ5 sit flat in the corners and its handling is more akin to a sporty sedan than an SUV. The steering is well weighted and felt direct on our initial drive.

Exactly how well the SQ5 holds up in a series of challenging bends we'll have to reserve our judgement on until we can properly put it to the test, but the early indications are overwhelmingly positive.

Inside, the SQ5 presents to Audi's usual high standard and borrows heavily from the A4/A5 range. Horizontal lines lend a feeling of space, the matt brushed aluminium inlays a sense of quality and the Virtual Cockpit digital dashboard a touch of technology. The S line flat-bottomed steering wheel also adds another sporty element.

The heated front seats offer good support and all are finished in Nappa leather trim with diamond quilted stitching. An electrically adjustable steering column and memory seating position help you find a comfortable driving position.

In the back there is good space for a mid-size SUV and the rear bench seat that slides and tilts is standard on the SQ5; it's optional on the Q5.

Other standard specification includes 21-inch alloy wheels, surround view parking camera, semi-autonomous park assist, navigation, Bluetooth, DAB+ digital radio and a 10-speaker sound system.

The SQ5 is priced from $99,611 plus on-road costs, which compares to $109,900 for the Mercedes-AMG GLC 43. But we'll save a direct comparison between those two for another day.

Judging the SQ5 on its own merits, the initial impression is a strong one. While the new petrol engine may lack the same punch as the old turbo diesel it's still quick, the chassis is still very competent in corners and the interior is luxurious and high quality.

It makes perfect sense that cars like this have become so popular.

2017 Audi SQ5 price and specifications

Price: From $99,611 plus on-road costs

Engine: 3.0-litre V6 turbo petrol

Power: 260kW at 5400-6400rpm

Torque: 500Nm at 1370-4500rpm

Transmission: Eight-speed automatic, all-wheel drive

Fuel use: 8.7L/100km

- For more information visit our Audi showroom