The headline news with the 2021 update to Audi’s Q2 small SUV range was the arrival of the SQ2 performance version.

On sale in Europe since 2018, it took a while to get a refreshed version of the SQ2 here, but as the saying goes, “good things come to those who wait”.

The potent pint-sized Audi entered our market at a keen $64,400 MLP but has since had a $2,500 price rise.

It’s a lot of money for a small SUV but it nonetheless undercuts its nearest prestige rivals, the BMW X2 M35i Pure ($68,900) and Mercedes AMG GLA 35 4Matic ($90,859). And it’s almost bang on the money for the slightly more powerful 235kW VW Golf R (from $65,990).

Audi has crammed plenty of standard features into the SQ2’s diminutive frame.

On the exterior, cue unique design 19-inch alloys, Audi drive select, gloss red brake calipers, matrix LED headlights with dynamic indicators/light sequences, high beam assist, quad tailpipes, metallic paint, and heated/folding/auto-dimming exterior mirrors. There’s also S sports suspension, full keyless entry and start, and a power tailgate to round out the largesse.

Inside, you’ll find colour ambient lighting, dual-zone climate control, multifunction S leather steering wheel, paddle shifters, Audi Smartphone interface including Apple CarPlay and Android Auto, Bang and Olufsen premium audio with 14 speakers, DAB+ radio, MMI Navigation Plus, Audi 12.3-inch virtual cockpit, and heated front seats,

On the safety front the pocket rocket lists among its inclusions adaptive cruise control with stop go function, six airbags, active lane assist, blind spot warning, front and rear park sensors, rear camera, park assist (parallel and perpendicular parks), Audi pre-sense including AEB with pedestrian and cyclist detection.

In true Audi tradition the test SQ2 was finished to a high standard with lovely glossy Turbo Blue paint on the bodywork complemented by a stylish look and premium feel to the interior, featuring shapely Nappa leather trimmed sports front seats with S embossing, metal trimmed dash air vents, light graphic dash inlays, and soft touch trims.

There’s plenty there to attract buyers, but it’s the hot-hatch pace and dynamic poise that will fire the passions of more demanding drivers.

Like the company’s S3 and TT sports car, the SQ2 boasts an enhanced and rather angry version of the 2.0-litre TFSI turbo-petrol engine that delivers 221kW/400Nm, the latter usefully spread between 2,000 and 5,200rpm.

It’s channelled to the road through a seven-speed S-tronic dual-clutch transmission and Audi’s quattro all-wheel drive system, a combination which sees the little Audi hunting down 100km/h from rest in a rapid 4.9 seconds, the same time as its X2 M35i rival.

Official combined consumption of the specified premium unleaded brew is a respectable 7.7L/100km putting it neatly between the marginally more frugal BMW (7.4L/100km) and slightly thirstier Mercedes-AMG rival (8.0L/100km).

On test our averages for a mix of driving conditions ranged from 8.6 up to 9.8L/100km.

The SQ2 rides on upgraded sports suspension with adaptive dampers that sit it about 20mm lower than the normal Q2 models, as well as rolling on larger 19-inch alloys shod with 40-series Bridgestone Turanza tyres.

The Bridgestone rubber and Quattro drive system conspire to deliver impressive grip levels, even on the rain-soaked south-east Queensland roads during our week of testing.

There’s a clear bias to dynamics in the firm sports suspension tune that leaves ride comfort a lower priority, with potholes, road joins and sharper edges producing some noticeable bump-thump, more obvious at lower speeds. But it’s a trade worth making in our view and no doubt many buyers will think so too.

Steering is pin-sharp and accurate, though the extra weight to be found when switched to Dynamic mode is more to our tastes, with Comfort mode feeling a little too light.

This small SUV rewards drivers, tackling corners with hot-hatch-like talent, offering nimble and responsive changes of direction and a flat stance.

Except for the typical higher riding position, it’s easy to forget that this is actually a small SUV.

The SQ2 is covered by Audi’s five-year/unlimited-kilometre warranty and with a 12-month/15,000km service interval, a pre-paid five-year service plan will set you back $2,580.

The aggro little Audi SUV proves the adage that good things come in small packages and seems sure to gladden the hearts of prestige performance buyers who choose to give one a loving home.

Key stats

• MLP: $66,900
• ENGINE: 2.0-litre TFSI turbo-petrol four-cylinder.
• ANCAP CRASH RATING: Not rated.
• FUEL CONSUMPTION (combined cycle, litres/100km)_: 7.7 (176g/km CO₂)
• FOR: Price relative to competitors, hot hatch performance and handling, quality finish, plenty of kit.
• AGAINST: Firm ride won’t be to all tastes, mobility kit – no spare.