The Audi Q2, a car that is expected to be a huge success for the German firm, has finally arrived in the UK.

Classed as an upmarket compact SUV, the new Q2 shares its platform with the company car favourite A3, and size-and price-wise sits somewhere between the former and the Q3 in the firm’s line-up.

Although Audi claims the Q2 has no natural rivals, fans of the current BMW X1, Mini Countryman and Mercedes-Benz GLA will be very interested in this latest model.

From launch there’s a choice of three engines: a 1.6-litre diesel, a 2.0-litre diesel and a 1.4-litre petrol.

Fleets are likely to be drawn to the 1.6-litre diesel, but the 1.4-litre petrol tested here is predicted to take the bigger proportion of sales and, actually, out on the road, is the better choice.

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Audi’s clever Cylinder on Demand technology deactivates two of the engine’s four cylinders when not needed, thus keeping economy figures in check. Pick the Q2 with a six-speed manual and official figures include 54.3mpg combined and CO2 emissions of 119g/km – only 5g/km behind the slower and more expensive 1.6-litre diesel.

A turbocharged 116hp 1.0-litre petrol, seen elsewhere in the A3 line-up, will also be joining the range by Christmas, with a powerful 2.0-litre petrol arriving later next year.

There’s 150hp and 250Nm of torque on offer, which powers the Audi Q2 from 0-62mph in 8.5 seconds, and fitted to our test car is the firm’s excellent seven-speed S-tronic automatic gearbox, which comes at a £1,550 premium. We also tested the six-speed manual and both are worthy choices here.

On 17-inch alloys the ride is fairly comfortable – the car only loses composure on bumpy country tracks, and handling overall is very good.

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More akin to a hatchback than an SUV, it tackles corners with poise, and the sharp steering is engaging enough. Although not as fun to drive as the Mini, the Q2 is easy to manoeuvre around the town, and bodyroll is kept to a minimum.

The Q2 can also be specified with an adaptive suspension. It makes the car feel noticeably more sporty and engaging and only costs an additional £595, which is worth considering if you venture out of the city often. Be warned, though – it comes at the expense of ride quality.

The importance of connectivity

According to Audi, connectivity is more than essential for a car like the Q2, which is why the firm is offering Apple CarPlay and MirrorLink as standard. There are also two USB ports in the cabin.

In the UK there’ll be a choice of three trims: the familiar SE, Sport and S-line. It’s the mid-range Sport trim that is expected to take the biggest chunk of sales, and the one we’d recommend for offering the best value for money.

There’s a £1,550 premium for picking Sport over SE, and for that extra cash you get upgraded 17-inch alloys, cruise control, automatic lights and wipers, sports seats, satnav, and the Audi Drive Select system that adapts the throttle response and chassis to suit the five driving modes available.

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Options include the excellent Virtual Cockpit, plus driver assistance systems like adaptive cruise control, a lane-keeping assistant, departure warning, and traffic jam assist. We tested the majority of these and came away impressed with the overall execution.

Space in the Q2 is plentiful for four adults to travel in comfort and there are lots of practical features on offer. Boot space at 405 litres is significantly smaller than the X1 and GLA; however, there’s more than enough room for a couple of medium-sized suitcases.

Interior excellence

Audi manages to strike the perfect balance for personalisation and sophistication. Interior quality in the Q2 is excellent, yet unlike its siblings, the cabin feels more fun and youthful, which adds an extra layer of appeal.

Early residual value predictions are promising too, with this Q2 offering 36.9% – the comparable BMW and GLA offer better, but it’s significantly higher than the Mini Countryman, arguably the Q2’s biggest rival. Whole-life costs are also strong at 57.5p per mile.

Audi Q2 1.4 TFSI CoD Sport

Model price range: £20,230-£35,600
Residual value: 36.7%
Depreciation: £16,100
Fuel: £5,863
Service, maintenance and repair: £2,460
Vehicle Excise Duty: £60
National insurance: £2,316
Cost per mile: 55.3p
Fuel consumption: 54.3mpg
CO2 (BIK band): 119g/km (20%)
BIK 20/40% per month: £85/£170
Warranty: 3yrs/60,000mls
Boot space: 405 litres
Engine size/power: 1395cc/150hp