Audi is betting big on the Q3 compact SUV and plans an annual production output of 100,000 units.

Audi has begun production of the Q3 compact SUV at a SEAT plant in Martorell, Spain.

VW Group, through both Audi and SEAT, has invested around €330 million in upgrading the facility for production of the Q3.

And Audi is betting big on the VW Tiguan-based compact SUV and plans on an annual production of 100,000 units. It hopes the Q3 will reclaim the title of Europe's top-selling premium SUV after the BMW X1 took over the mantle from the Audi Q5 last year.

The Q3 goes on sale this month in Germany and will be offered initially with three engine options. The 2.0 liter TSFI unit with an output of 125 kW / 170 PS (168 bhp) or 155 kW / 211 PS (208 bhp), as well as the 2.0 liter TDI with 130 kW / 177 PS (174 bhp). A 2.0 TDI that develops 103 kW / 140 PS (138 bhp) is slated to come later.

Prices for the Q3 in Germany start at €29,900.

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