HARD to believe, I know, given the marque's amazing growth spurt in the last five years, but the new Q3 breaks exciting new ground for Audi.

The smallest Q-series off-roader yet, the Q3 uses the incredibly versatile Volkswagen PQ35 platform – which also underpins the Golf, the A3 and, of course, VW's own Tiguan SUV – extensively revised to Audi's requirements.

For instance, the Q3 is partly fashioned from “hot-shaped” steels which have been heated in a furnace to more than 900 degrees Celsius and shaped in a water-cooled pressing. The abrupt change of temperature gives the finished panels incredible strength, the same as the cables of a suspension bridge. Hot-shaped steels are used in the transmission tunnel, the roof frame, interior sills, B-pillars and the transition from the front end to the passenger compartment. Because they are so strong, hot-shaped steels can also be thinner, contributing to a useful weight saving and improving the Q3's efficiency.

Mind you, it needs to be good.

The Q3 is pitched into a class packed with good cars. During the UK launch, which was held in Whitby, Audi bosses listed both the BMW X1 and the Range Rover Evoque as key Q rivals.

The Audi sits neatly between its two biggest challengers, being taller and wider than the BMW, and longer than the Evoque but the wheelbase is shorter than either.

Looks count for a lot in this class. The Q3 bears a distinct resemblance to the 2007 Cross Coupe concept with a liberal sprinkling of Q5/Q7 motifs like the wrap-around tailgate (fashioned from aluminium to save weight) and the one-third glass/two-thirds sheet metal ratio that somehow makes the Q3 appear larger than it really is.

The cabin looks and feels classy. Inlays of “micrometallic platinum” in the doors and above the glovebox, knurled metallic knobs, nicely-damped switchgear and soft interior lighting all lift the ambience. If you lash out for the optional Bose surround sound system, the frames of the woofer/mid-range speakers in the front doors are illuminated by LEDs. It's everything buyers of a premium product would expect.

The Q3 is a small SUV and, with five people aboard, the cabin would best be described as “cosy” but the sloping roofline doesn't impinge too badly on headroom for anyone sat in the rear and, two-up, there's plenty of room in the front. The boot capacity (460 litres with the seats up) comfortably exceeds the stingy BMW, but can't match the Evoque's 575 litre luggage area.

On the road in the 2.0-litre TDI that's expected to be the big seller, the first impression is of exceptional acoustic refinement. At normal cruising speeds the Q3's powerplant is inaudible. There's a bit of a growl if you put your foot down but, really, with a diesel as hushed as this, there's really no reason to opt for a petrol engine, even the award-winning direct injection turbocharged TFSI.

The high-power engines are fitted with a dual clutch seven-speed semi-automatic transmission as standard. The lower power 2.0 TDI and the 170PS TFSI make do with six-speed manuals. The auto produces a super smooth change, but on the steep hills of the Yorkshire moors it sometimes dropped a couple of gears when I'd have only have changed down once. Manual intervention is possible via the steering-mounted paddle shifters but the Audi's computer quickly resumes control. The power steering steering could do with a bit more heft, too, although it does make easy work of low speed manoeuvring and the power assistance gradually decreases the faster you go.

Initially, the Q3 is four-wheel drive only, but a two-wheel drive variant will be here soon.

Audi produced an impressive set of stats to show how the Q3 will be considerably cheaper to insure and run than its rivals. It should also retain its value very well.

Dealer order books opened a couple of months ago and already more than 1,000 people have signed up. Each one is made to order – one reason why there are so many optional extras and personalisation choices in the brochure.

Next year, Audi hopes to sell 100,000 Q3s worldwide and around 7,000 in the UK. The German juggernaut should have no trouble meeting those modest sales figures. Indeed, Audi UK's biggest problem will almost certainly be satisfying demand. If you don't get in quick you can expect a long wait, unless you are prepared to pay over the asking price.

And Audi's growth spurt looks set to continue for awhile yet. After the Q3 word is that an even smaller Q1 is on the drawing board.

For now, though, the Q3 represents the most affordable way to get behind the wheel of an Audi SUV.