Audi's huge flagship SUV comes with hot-hatch levels of handling and performance.

Any way you look at it Audi's SQ7 is big news. The flagship SUV is a technological tour de force and eclipses the BMW M50d and Range Rover Sport turbo diesel as the meanest mainstream seven-seater.

Audi Australia hasn't set prices in advance of the SQ7's local launch in October but is predicting a "sub-$160,000" starting point. That probably makes this Audi's best value performance model.

The money buys a twin-turbo diesel V8 with ridiculous amounts of power, augmented by an electrically driven compressor that works like an instant turbo to force-feed air into the engine at super low revs when the mechanical turbos have yet to spin up.

The result: instant power on accelerator application. It's not neck-snapping but helps push this 2.3-tonne car from rest to triple figures in just 4.8 seconds.

Really good stuff comes in the options list, headlined by a dynamic pack with active anti-roll bars, torque-vectoring sports differential and four-wheel steering. Anyone planning to use the performance potential of the SQ7 will need to tick this box.

Many will simply want the effortless load-hauling ability of the new SUV, from the seven-seat layout (five seats are a no-cost option) to the 3.5-tonne towing capacity. They'll be doing it in style thanks to a leather and alcantara-covered interior studded with solid, stylish switches and buttons.

The driver benefits from the digital "virtual cockpit" instrument display and there's an 8.3-inch multimedia screen on top of the dash displaying satnav, running Google Earth with impressive clarity.

You do feel the instant surge of torque on takeoff and the turbochargers progressively kick in.

A 48-volt electric subsystem powers the SQ7's electric compressor and the active roll bars. It is a sign of things to come as technology puts increasing demands on the car's electrics.

In this case the hardware sits under the boot, reducing cargo space from a regular Q7 by 65L to 705L with the third row seats folded flat. The 0.5kWh lithium-ion battery provides instant power for the compressor, which has a peak power draw of 7kW.

You don't feel or hear the compressor activate but you do feel the instant surge of torque on takeoff and the turbochargers progressively kick in as the revs mount.

On the road

Hang on to your horse float. The SQ7 is a sports car cross-dressed in SUV sheet metal.

You expect straight-line performance from 320kW/900Nm but nothing can prepare you for the first hot corner when you wait for the big SUV to pitch and roll and the tyres to squeal in protest.

It's a non-event. The Audi faithfully follows steering inputs and flicks through a series of tight, downhill turns like a bloodhound on the scent.

It is hugely impressive and puts the SQ7 clear of the pack in terms of its ability to get from A to B in minimum time with minimum fuss. The steering isn't as sharp or well-weighted as the likes of a Porsche Cayenne but that's one of the few criticisms.

Even if artificially enhanced, the engine note has to be among the best diesel soundtracks. The official fuel use will be about 7.6L/100km, though vigorous driving will push that towards 10.0L.

You expect straight-line performance from 320kW/900Nm but nothing can prepare you for the first hot corner 

Audi's driving modes have been tweaked to reflect the SQ7's sportiness. The comfort setting erases most road irregularities and gives the SUV a refined and relaxed ride even on bumpy country roads.

Opt for sport and the chassis tightens — you still feel mid-corner bumps but they don't affect the vehicle's composure. In either case the conventional eight-speed auto transmission is rarely caught out when going up or down the ratios.

On the freeway at 130km/h, this is a supremely quiet SUV. There's a distant whisper of wind noise from the mirrors and a faint murmur from the optional 21-inch wheels (20-inchers will be standard) but nothing to indicate you are driving a car with the frontal area of a cruise liner.

The high window line, chunky rear pillars and sheer size of the SQ7 mean outward vision isn't fantastic but the same applies to all modern SUVs. In the Audi's case, not much will be moving up on you anyway.