Audi SQ7 confirmed with monster 440kW V8, and it’s coming to Australia to rival new X5 M

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The next-generation Audi SQ7 has been revealed in the United States with an even more powerful twin-turbo V8 engine, and the high-performance SUV is set to continue in Australia despite the complications of local NVES emissions laws.

Audi of America, the division of the German brand in the US, has published early specifications for the 2027 SQ7, confirming the renewed sports SUV will use a revised 4.0-litre TFSI petrol engine producing 440kW/800Nm.

That’s a substantial uptick on the outgoing SQ7’s 373kW/770Nm. Based on the US model’s 0-60mph claim of 3.7 seconds, it’s expected that the 0-100km/h time will decrease from 4.1 sec in current guise to a sub-four result.

The US model pairs the V8 with an eight-speed torque converter automatic transmission, permanent Quattro all-wheel drive, an electronically controlled locking rear differential, and standard adaptive air suspension.

American buyers will also be offered a ‘sport’ air suspension package that further lowers the SQ7 by 30mm. 

While no mild-hybrid system was mentioned in the American announcement, it seems likely that the Australian model would continue with a degree of electrification given that the outgoing model has Audi’s MHEV system.

Diesel versions of the new-generation Q7 announced yesterday will introduce Audi’s more effective MHEV Plus system to the large SUV locally.

The nature of the hybrid system matters, because Australia will launch the SQ7 in an environment where high-CO2 vehicles are penalised by New Vehicle Efficiency Standard (NVES) laws.

Speaking with Chasing Cars, Audi Australia head of product Matthew Dale said combustion performance cars like the SQ7 were now assessed as part of a wider portfolio business case.

“With any engine in this current environment in Australia, with the regulations we have and NVES, we also consider everything around it as a total business case,” he said.

“Our customers love performance cars, and we know that our S and RS models perform extremely well.”

Dale said the MHEV Plus system fitted to the TDI models, along with the likely addition of a plug-in hybrid Q7 powertrain being evaluated for Australia, would help Audi offset higher-CO2 engines in the lineup.

The current SQ7 petrol V8 emits 271g/km of CO2 (while using 11.9L/100km on the combined cycle), but even a more efficient version would still sit well above NVES limits.

That could push Audi to fit MHEV or MHEV Plus tech to the SQ7 for Australia, even if the US version does not utilise that tech — or the SQ7 might need to be priced for a degree of NVES exposure.

The current SQ7 carries a price of $174,815 before on-road costs. Given the 18 percent power bump, new gen’ platform, longer equipment list and possible NVES pressure, the replacement could plausibly be more costly.

In the US, the SQ7 will be offered in six- or seven-seat configurations with 22-inch wheels as standard (and 23s as an option), and with larger brakes (420mm discs front, 380mm rear), S-specific bodykit, a honeycomb grille, and quad exhaust outlets.

The SQ7 also picks up the new Q7’s curved OLED digital display, a standard-fit passenger display, digital matrix LED headlights and digital OLED taillights, ground-projected indicators, optional automatic doors, and an available Bang & Olufsen 4D stereo.

Australia’s standard Q7 range is due in late Q1 2027, with two 3.0-litre turbo diesel V6 engines arriving first in 180kW/500Nm and 220kW/630Nm tunes.

A petrol V6 PHEV officially remains under evaluation, though its important role in reducing overall Audi emissions means it is expected to be confirmed, with the SQ7 V8 arriving later on.