This $84,990 car has updated systems and is even bigger.

The small SUV market dominates New Zealand new vehicle sales and nestled in those statistics are premium versions. Actually, not so much nestled – more like elbowing their way in are the European versions.

Audi New Zealand recently launched the second generation of its Q3 SUV, sitting just ahead of the Q2 and behind the very popular Q5.

The Q3 and Q2 sit in the small SUV segment, along with 20 other models with a variety of prices covering the range.

The Q3 starts at $60,900 for the 35 TFSI Advanced, $74,900 for the 45 TFSI and another $10,000 for my test model, the 45 TFSI S Line.

My vehicle also had the 20in alloys in 5-V-spoke star design ($3800 more), Bang and Olufsen premium sound system with 3D Sound ($2300), tinted glass at $1200 and leatherette upholstery S line including front heated seats ($1500).

But there is actually barely elbow room in this premium segment with Mercedes-Benz offering the GLC around this price and BMW X3 available. Then there is Volvo with its popular XC40, the Range Rover Evoque, Volkswagen Tiguan and Spanish brand SEAT and the Ateca.

Lots of choice for customers.

Audi also has competition from within with the smaller Q2 in the range that starts at $56,900.

So to attract a different customer than potential Q2 buyers, Audi has made the Q3 “more masculine” says the brand and upsized it from the previous generation.

This Q3 is 96.5mm longer and 17.8mm wider than its predecessor, creating a roomier cabin.

The boot is now 70 litres bigger than before, at 530 or fold down the second row and you get 1525 litres of space.

What I loved about the updated Q3 was a new satnav system that shows on the cockpit screen how many metres until you have to turn, making navigation (nearly) foolproof.

The cabin is also roomy, with enough room in the rear for tall passengers (unlike the Q2).

Safety features include seven airbags, autonomous emergency braking, blind-spot warning, rear cross-traffic alert, door exit warning, lane-keeping assistance and tyre pressure monitors.

My 45 S-line had a 2-litre petrol engine, providing 169kW of power and 350nm of torque. Like the rest of the Q3 range, it has a 7-speed S-Tronic transmission with steering wheel paddles to help move through the gears.

It also came with quattro four-wheel drive, making it a genuine off-roader.

On the road, the Q3 is relatively quiet and refined. The steering can feel a bit too light at first, but you soon get accustomed to it. This also makes it easier to manoeuvre the Q3 at low speeds and when parking.

The suspension feels taut over bumps – not too busy and not too floaty – and the steering is impressively responsive.