Big Grilles, Less Power, Less Lux: What's Going On with BMW and Audi?
A few years ago, it was almost a given. If you wanted the sharpest driving dynamics, class-leading technology, and the most luxurious feel in your SUV, you'd turn to a German badge. BMW, Audi, and Mercedes-Benz were not just seen as aspirational. They were benchmarks. But a look at their latest models, particularly the new BMW X3, Audi Q5 facelift, and even the iX LWB, raises a curious question. Are the Germans coasting on brand power rather than product excellence?
On paper, these new launches tick the expected boxes: imposing presence, smartly designed cabins, and the promise of badge prestige. But scratch beneath the surface and a pattern emerges. Lower engine outputs, features that feel a step behind the competition, and surprisingly average materials for the price. The only thing getting noticeably bigger seems to be the grille.
Take the newly unveiled BMW X3, for instance. The design has been updated to reflect the brand’s new styling language, including a massive front grille and a sharper profile. But under the hood, the power output hasn’t seen a corresponding leap. In fact, the petrol engine on offer, though efficient, does not deliver the kind of performance that was once synonymous with the X3 badge. The same goes for the facelifted Audi Q5. It looks leaner and a bit more aggressive, but the 2.0-litre TFSI engine still makes the same 249hp as before, without any significant boost in torque or driving excitement.
Contrast that with what some much cheaper SUVs are offering. The new Hyundai Tucson, for example, delivers a full package of ADAS features, a refined diesel engine with excellent torque, and a cabin that feels genuinely plush at nearly half the price. The gap with electric SUVs like the BYD Sealion 7 and even the much cheaper Mahindra XUV 9e is stark. It’s the latter that are pushing the performance and tech boundaries harder. These aren't just good-value alternatives. In terms of features, they’re often ahead.
Luxury isn’t just about badge value. It’s about the richness of materials, the innovation in controls, the sense of occasion when you step inside. And this is another area where the new-gen German SUVs seem to be treading water.
The new X3’s cabin, while well-built, doesn’t elevate the experience over its predecessor. The Audi Q5’s virtual cockpit and MMI system still work well but haven’t evolved meaningfully and materials are average, at best. Meanwhile, brands like Volvo are offering interiors that feel more contemporary and minimalistic in the best way, while Genesis, in overseas markets, is redefining what design flair and material richness can mean in a luxury car.
Even the much-hyped BMW iX LWB, with its extended wheelbase and futuristic design, fails to bring a significant wow factor inside the cabin. There’s screen real estate and electric gimmickry, sure, but rivals like the Kia EV6 and BYD Sealion 7 appear better packaged and more generous in passenger-centric features.
So, why are these storied German marques playing it safe? Some industry watchers suggest that the focus is shifting to margins over innovation. It’s no secret that developing high-tech powertrains and pushing boundaries with features costs money. With global emission regulations tightening and electrification timelines shrinking, R&D budgets are being pulled in multiple directions. But for the luxury buyer, especially one putting down ₹80 lakh or more, this isn’t an excuse. They expect leadership.
The question then arises: are German brands relying too heavily on badge value, confident that the customer will come regardless of what’s under the bonnet or behind the touchscreen? At present, that bet seems to be paying off. Sales numbers for the Q5, X3, and GLC remain steady. But how long can that last?
In a landscape where Skoda, Toyota, and Mahindra are rolling out more feature-rich offerings, and where EV startups are giving traditional players a real jolt, the old formula of brand first, substance second, may start to wear thin.
What Buyers Are Really Thinking
There’s a growing sentiment among enthusiasts and first-time luxury buyers alike: if I’m paying a premium, I want the best, not just the badge. Whether it's team-bhp community chatter or early impressions from auto media drives, the disappointment is tangible. Not necessarily in how these cars drive, because they’re still competent, but in how little they’ve moved the needle. It feels as though the Germans are playing catch-up on tech, and that’s an unfamiliar position for them.
Some even speculate whether these cars are now being “de-featured” for developing markets, especially in comparison to their global-spec counterparts. In earlier years, this was acceptable. Today, it stands out.
What Comes Next?
To be clear, BMW, Audi, and Mercedes aren’t suddenly making bad cars. They’re still supremely engineered and often better than most in driving dynamics. But in an era where even mainstream manufacturers are pushing hard on innovation, the luxury badge must stand for more than just legacy.
The Germans have a long track record of setting benchmarks. Right now, it feels like they’re watching others do that job. Whether the next wave of launches reclaims their leadership or continues this conservative trend will decide whether they stay aspirational or just become expensive.