Best Small Luxury SUV
This fast-growing market segment has plenty to offer the prestige SUV buyer who doesn’t need to cross the Canning or carry the tribe to sports practice.
Among the 10 different small luxury SUVs currently on sale in Australia, our three capture over a third of the market.
That means one-in-three vehicles sold in this segment is either an Audi Q2, Mini Countryman or Volvo XC40. To provide more context, around 20,000 small luxury SUVs over $40,000 are sold in Australia each year, making it roughly one-fifth of the more mainstream small SUVs under $40,000 segment.
Its total size proves the segment may be a minnow, but there are some heavy hitters. Not many indulge in the act of buying a brand-new compact luxury SUV compared to bigger segments like medium SUVs or dual-cab utes. But its exponential year-on-year sales growth proves a greater number are choosing a new small luxury SUV.
Eligibility into this year's field was on the basis of two merits: winning the year before, as the Volvo did, or having been updated significantly during 2021, as the Audi and Mini have.
The Audi and Mini also represent the broad spectrum on offer in the segment. The former is a more design-led take on an SUV, while the other is a wagon in masquerade.
Both sound very appealing, as does the incumbent, which is a just-right-sized SUV with the optimal balance of style, function and quality.
But, as always, there can be only one winner. Let’s find out.
Winner: Volvo XC40
- Fantastic ride quality and handling
- Excellent space in the second row
- Driveline is spot-on for a small premium SUV
- Options can add thousands to the price
- Can be thirsty in stop-start traffic
- Plug-in hybrid and fully electric models cost a lot more
Last year’s winner has done it again. The Volvo XC40 is the best in its class for 2022.
Aside from the key criteria of braking performance measures, overall road impressions and interior assessment, emotive factors like kerb appeal and design were also discussed and considered. The judges all agreed that the Volvo XC40 is the ideal combination of style and substance.
In a more plain colour like white or silver, it simply blends in, whereas our unique Coral Red car stood out and made a statement. Aside from looking great, it drives great too, with the entry-level XC40 T4 Momentum model feeling like a fantastic buy with its sub-$50K price tag.
If you’re after something fancier, Volvo has the answer. Up from the Momentum trim level is the elegant and luxury-focussed Volvo XC40 T4 Inscription from $52,990, and the more powerful Volvo XC40 T4 R-Design from $56,990, both before on-road costs at the time of testing.
If petrol power isn’t your style, there are both plug-in hybrid and fully electric versions available in the $60–$70,000 price bracket. Regardless of the powertrain you pick, they’re all excellent and have a worthy place within the wider XC40 range.
The popular ‘T4’ driveline – a 2.0-litre four-cylinder turbo and eight-speed torque converter automatic – is a relatively simple one, but is also quiet and effective. It demonstrates the desirable traits of a linear power band, yet with enough torque down low to move some weight, which makes it ideal as a compact family SUV.
In both the XC40 Momentum and XC40 Inscription versions, the 2.0-litre turbo four-cylinder produces 140kW/300Nm, and the R-Line trim has a more potent 185kW/350Nm.
The 1.5-litre three-cylinder turbo from the plug-in hybrid variant is equally as refined, and pairs well with the electric components despite being down on displacement.
Volvo has seemingly solved both issues, as well as augmented the charismatic triple-cylinder engine with electrification – making it quite the package overall.
On the road, the XC40’s suspension offers excellent ride quality, and happily proved its worth in both swerve and emergency stop situations. In terms of braking performance, it was a close race between it and the Audi, with the Mini coming last in this discipline.
Inside, the Volvo’s second row is easily the largest of the three finalists, offering great habitability for adults and children alike. It'll happily take a pair of decent-sized convertible child seats without impeding on the first row. It's ideal for those who often ferry passengers and want a small yet premium SUV.
Buying now? View new Volvo XC40 models in stock
Finalist: Audi Q2
- Cabin quality and design execution
- There's one for all buyer types – cheap, nice or fast
- Fairly priced considering the specification
- Entry-level feels underdone
- Compact second row
- Old infotainment system
The Audi Q2 does a lot of things right.
It’s clearly the youthful and offbeat choice. Unlike others from its product portfolio, this Audi comes in plenty of bright colours, can be heavily customised visually via the options list, and stands apart stylistically from the more traditional and larger Audi Q3 and Audi Q5 models.
The Audi Q2 range starts from $43,600 before on-road costs, meaning it’s likely to get on the shopping lists of many younger and metro-located car buyers.
Powered by a 1.5-litre turbocharged four-cylinder engine, the entry-level Q2 35 TFSI can be had for less than $50K on the road with the obligatory joy of ticking a few optional extras to make it your own.
If you want more power and maybe all-wheel drive, there’s always the Audi Q2 40 TFSI S Line Quattro. Not only does it introduce sporty styling and the brand’s signature Quattro all-wheel-drive system, but also a more powerful 140kW/320Nm 2.0-litre engine. It starts from $50,600 before on-roads (prices noted at time of testing).
There's even a lairy $65,300 Audi SQ2 variant with 221kW/400Nm if you're interested in something seriously spicy. Although tempting, the far more popular and regular Q2 range is in tough competition at this year’s Drive Car of the Year.
In turn, the two core models show room for improvement. There’s no denying that the product was first introduced globally back in 2017, and the small and basic infotainment system is starting to feel dated.
The four-ringed badge on the steering wheel does set a high watermark in terms of quality, and the competition is also incredibly stiff in this class. Another point is second-row habitability, as the cabin could benefit from a little more length.
More important than the look is the feel, however, and the Q2 still maintains Audi traditions of smart road manners and handling that’s both trustworthy and adept. The precision weighting of the vehicle’s steering and related controls is another highlight, and quickly makes you feel comfortable.
In our emergency braking test, the Audi Q2 stopped the shortest of all cars on the day, and remained composed through the emergency swerve and avoid.
Overall, the Audi Q2 is an attractive offering in the Small Premium SUV segment, but it wasn’t quite good enough to pip the Volvo for this award.
Buying now? View new Audi Q2 models in stock
Finalist: Mini Countryman
- Fun to drive and feels quality
- Great cargo area and roomy second row
- It needs no introduction – that matters for some
- Expensive
- Odd ergonomics can feel kitsch
- Noisy cabin, especially on a back road
On paper it's an SUV, but in reality the Mini Countryman visually suggests otherwise. Mini has taken the age-old and no longer popular wagon body style and made it cool for the 21st century.
The 2022 Mini Countryman range is broad with more than 10 different variants to pick from. Prices start from $45,000 before on-roads for the Mini Countryman Cooper Classic, $53,400 for the Cooper S, and $63,850 for the hot Countryman John Cooper Works (all prices before on-road costs at the time of testing).
A selection of up-market ‘Mini Yours’ versions sit atop the Countryman range, taking the price to $73,650 for the “Mini Countryman John Cooper Works Mini Yours Auto All4”. Luckily they don’t try and fit that all on the one badge or the car might be wider than some city streets!
The entry-level Cooper models are powered by a 1.5-litre three-cylinder petrol engine with 100kW/200Nm and a seven-speed dual-clutch automatic transmission, whereas the Cooper S models use a 2.0-litre four-cylinder petrol engine with 141kW and 280Nm, and the same seven-speed transmission.
The top-rung John Cooper Works cars have a spicier version of this 2.0-litre four with 225kW and 450Nm matched to an eight-speed automatic. Being styled and modelled after a wagon means the Mini Countryman SUV comes with benefits like a large and well-proportioned cargo area, up to 450L.
Aside from the glitz and glamour, there's an admirable car underneath. You can tell it's made under the watchful eye of parent company BMW, with its meaty steering adding a sense of surety and agility to its dynamic capabilities. That’s right, despite being one of the bigger Minis, it’s still a lot of fun to punt around.
However, the mainstream powertrains can feel a little underdone, and it's certainly not the cheapest of our three finalists either. Another point noticed by more than one judge was that the cabin can be comparatively noisy, which detracts from the expected ‘premium’ experience.
Although a throwaway anecdote, our test car was nearly $10,000 more expensive than the other two from the same class. As cute, stylish and unique a proposition as it is, it’s hard to argue that the Mini Countryman is better value or better packaged than the Volvo XC40.
Buying now? View new Mini Countryman models in stock
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