What it is: A diminutive luxury SUV that is smaller than the Audi A4–based Q5.

Why it matters: The Q3 is Audi’s entry into a new segment; it will compete directly with BMW’s upcoming X1 SUV.

Platform: Based on the Volkswagen Tiguan and approximately the same size, the Q3 is nevertheless lower and sportier. Audi Drive Select, the brand’s adjustable chassis-control system, will be optional.

Powertrain: A 2.0-liter turbo engine producing 211 horsepower will be mated to a seven-speed dual-clutch transmission. Front-drive will be standard, with all-wheel drive as an option.

Competition: Three upcoming 2011 models—BMW X1, Land Rover LRX, Mercedes-Benz BLK.

Estimated arrival and price: Debuts in the fall, likely starting at $30,000.

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