LAUNCHING a premium grade sports utility in an economic climate where car sales appear to be in free-fall and the environmental lobby has got its teeth deep into off-roaders, would seem to be an untimely move.

However, Audi believe they have got the formula right to capture a goodly slice of the market, starting this month with its new Q5.

With a combination of state-of-the-art technology, prestige fixtures and fittings and much improved fuel economy, Audi hopes it will appeal to those who still appreciate the benefits of a 4x4 but in a package that is less intrusive than models such as its own seven seat Q7.

The two models will inevitably be mentioned in the same sentence time and time again because they look so similar – the Q5 appearing to be a slimmed down version with its characteristic single frame grille, expressive headlights, large wheels, sloping roof and wraparound tailgate.

Underpinning the Q5 is the platform already used on the much admired Audi A4 and A5 Coupe which gives it a longer wheelbase than its perceived rivals and, with a five-link front and trapezoidal link rear suspension, a very flexible one.

Where the Q5 has a noticeable advantage over its larger sibling is in the handling stakes. Many owners already appreciate how good the A4 and A5 are as driver’s cars and this is going to be one of the Q5’s key selling points.

While the Q7 has a tendency to wallow and, mainly because of its size, is a bit of a handful on cornering, the Q5 is far more stable and rewarding to be behind the wheel of.

And, of course, it has Audi’s famed quattro four-wheel drive to help it along. In normal driving, 60 per cent of the power goes to the rear wheels but in difficult situations this automatically adapts and can send up to 65 per cent to the front or 85 per cent to the rear.

Audi make no great mountaineering claims for the Q5, and it doesn’t have the ground clearance for serious rock hopping, but the installation of Hill Descent Control does assist the occasional moorland excursion.

On top of this, buyers can opt for the latest Drive Select adaptive dynamics system which allows drivers to fine tune the settings for the suspension, steering, throttle and transmission via a dashboard mounted control.

There is a detectable difference when these parameters are changed, giving the Q5 different personalities – although it’s advised to make all the setting adjustments before setting off as it’s a rather complex operation. The downside is that drivers have to dial in the settings ahead of knowing what the driving conditions might be.

Owners have the choice between longitudinally mounted FSI petrol and common rail injection TDI diesel engines.

Boasting 170bhp, the new 2 litre TDI will be the favoured option and in motion feels a lot more energetic (using a six-speed manual transmission) than the paper figure of 9.5 seconds to 62mph might suggest.

With 42mpg possible, the credit crunch isn’t so severe and 175 g/km of emissions aren’t going to hit the tax bill too hard.

Its more powerful partner, the revised V6 3.0 TDI, offers up 240bhp so it’s no surprise its sprint time drops to a more sportscar like 6.5 seconds while emissions go in the other direction to 199 g/km and fuel thirst increases to 37.6mpg.

The lone petrol for the moment is the new 210bhp 2 litre TFSI that takes this not insubstantial machine to 62mph in a lively 7.2 seconds. The major handicaps are that fuel consumption withers to 33.2mpg and emissions are rated at 197 g/km.

Both the petrol and 3 litre diesel are matched to a new and very efficient seven-speed S tronic double clutch automatic transmission which is a delight to use.

Although the Q5 loses out to the Q7 on internal space it has lost none of the high quality trappings and strong specification list.

All models come with: climate control, Driver Information System; six speaker CD audio; electric windows; electrically adjusted and heated door mirrors; and an electromechanical parking brake.

SE trim adds in: leather upholstery; colour information system; four-spoke leather trimmed multi-function steering wheel; 10 speaker CD audio; electronic climate control; automatic headlights and windscreen wipers and rear parking assist.

Topping the range the S Line contributes: Xenon headlamps with LED day-time running lights; distinctive LED rear lights; exclusive front and rear bumpers along with a grille and still extensions; sports seats and brushed aluminium inlays.

Pricing for the new Q5 starts at £27,070 for the standard 2.0 TDI quattro rising to £36,750 for the S Line 3.0 TDI quattro.