2023 German Compact Luxury SUV Showdown: Audi Q5 Vs. BMW X3 Vs. Mercedes

In a crowded class, we explore which of the luxury German automakers has brought us the best crossover in 2023

German automakers are known for delivering expertly engineered, finely tuned, luxury vehicles. This has almost forever been the case. So, when it comes to luxury crossovers, it's no surprise that some of the heaviest hitters in the class are from Germany.

The three crossovers we’ve singled out are the precise and trendy Audi Q5, the agile BMW X3, and the ever-posh Mercedes GLC-Class. The battle between these three has been waging for more than a decade and we decided it was time to see what has changed in their latest iteration and if we can find a winner.

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Audi has made a few changes to the Q5 this year to further push their refinement of the SUV. The first of these changes is the inclusion of adaptive cruise control becoming standard across all models. A Bang and Olufsen stereo system has also been included in the Premium trims. Finally, the hybrid models have had their taillights upgraded to new OLEDs.

The Q5 has three different powertrains to choose from. The first of the powertrains is a 201-horsepower four-cylinder engine, which comes fitted with a turbocharger and Quattro all-wheel drive. If you’re looking for a smidge more power you can opt for the 261-horsepower models.

The final powertrain pairs the four-cylinder with an electric motor which pushes the horsepower all the way up to 362 horsepower, a massive difference. All of these engines run through a seven-speed automatic gearbox. With an available towing capacity of up to 4,400 pounds, the Q5 definitely packs a punch. All this with an up-to-EPA-estimated combined 25mpg.

You won't be at a lack of speed or power in any of these models, but the latter two are particularly brisk, running 5.5 and 4.5 0 to 60 times respectively. The biggest downside to the performance of the Q5 is when you aren't taking it in a straight line. Its steering feels fairly automated, a big negative for anyone looking for a driver-oriented car.

Inside, the space is something that is somewhat scarce. Cargo space is also incredibly limited, with only 25.8 cubic feet of capacity with the rear seats up. The Q5 does, however, make up for this with a 40/20/40 seat folding platform, which provides a little more versatility.

In terms of the infotainment system, buyers won't lack features, with all the regulars such as Apple CarPlay and Android Auto being standard. The most interesting feature, however, comes with the premium model, where you can personalize your digital gauge cluster through Audi's fantastic virtual cockpit.

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The X3 kind of embodies everything that the perfect crossover should be, and it does so in such a well-blended way. Some minor additions have been made to the 2023 model along with its updated looks: their proximity unlock system has been made standard for all trim levels, gesture controls for the iDrive infotainment system have been removed, and skyscraper grey is now available for the M30i models.

This is the only SUV of the three to not have a hybrid option in the U.S. So, if sustainability is incredibly important to you then this might be a negative. What this doesn't mean, however, is that the X3 is lacking in power. The base model of this muscular crossover comes equipped with a 2.0-liter turbocharged four-cylinder that outputs 248 horsepower and 258 pound-feet of torque.

0-60 mph times have been reported to be around the 6.0-second mark, making it notably slower than the Audi. However, if you push to the M40i, you can reach that 60 mph mark in a startling 4.1 seconds. This is thanks to its 3.0-liter 382-horsepower heart. All models come with an eight-speed automatic gearbox and 4,400 pounds of towing capacity. It also achieves reasonable fuel economy at an EPA-rated 24 mpg combined, making it a great choice for daily luxury.

The X3 has an incredible ride, feeling sporty without sacrificing comfort. This can be further enhanced by getting the optional extra Dynamic Damper Control, which makes the suspension system adaptive, allowing you to choose from three different ride modes.

Space is not so scarce in the X3 as it is in the Audi, but it's not anything to write home about either. It has very standard 28.7 cubic feet of cargo space with the rear seats up and matches the 40/20/40 seat lowering configuration of the Audi. Some of the impressive features of the BMW X3 include reclining rear seats, 10-way power-adjustable front seats, and a cabin covered in high-quality materials such as faux leather, to add to that premium feel.

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Mercedes claimed that it was "hard to improve" the GLC, a statement that is as bold as it is modest. However, they have managed to change up a few things. Whilst not yet released, the 2023 model will come with updated styling which definitely makes it look a touch more sophisticated. It also comes with more cargo space, a 360-degree exterior camera, and an ambient lighting system for the crossover's cabin.

Of the three, this crossover is not for those seeking thrills and adopts a more refined sensibility. At launch, there is no plug-in hybrid option for the crossover, but the 48-volt hybrid engine in the current powertrain is standard. It pairs with another 2.0-liter four-cylinder engine and produces 258 horsepower. Which, to be fair, is not negligible. A nine-speed automatic transmission is fitted in the GLC with a 4Matic all-wheel drive system being optional.

It's yet to be tested on the track or receive a fuel rating outside of the coupe, but we expect it to be on par in terms of economy and for it to be a little slower off the line than the other two crossovers on the list. It also has a slightly lower towing capacity of 3,500 pounds. Unfortunately, on top of this, the ride on the GLC isn't all that impressive. Even with adaptive suspension options, it seems that the GLC is just a bit too firm, an odd thing in a luxury SUV.

With the smallest of the cargo holds, even after Mercedes’ improvements, space isn't the GLC's strong suit. Neither is its impressive steering wheel with touch-sensitive controls which, if the C200 compact sedan is anything to go off of, doesn't work very well. The build quality is incomparable though, as expected from Mercedes, with material at the top of their class and design elements that truly impress. The MBUX system is also one of the best infotainment systems for ease of use out there.

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The competition is stiff between these hard hitters; however, the choice seems fairly straightforward. While choosing the GLC makes sense if you’re looking for that hallmark Mercedes identity and luxury, or going with the Audi is reasonable for pure speed and thrill, the BMW hits all the marks better than its competitors. All the cars are fairly competitive price-wise, with the Q5 ranging from $44,200 to $67,000 the GLC from $47,100 to $49,100, and the X3 sitting between $46,200 and $61,000.

Thus, it all comes down to features, comfort, and that extremely well-designed four-banger powering the BMW. None of these cars will leave you disappointed, the 2023 BMW X3 just comes through to deliver a more well-rounded and enjoyable driving experience.

Tyler Dupont has had a deep passion for cars his entire life. That coupled with his love to write has brought him to TopSpeed to share his love of Motorsport with the world.