A performance-focused version called the Audi SQ8 was launched in June 2019 with chassis revisions, styling, and technology upgrades. It features a new 4.0-litre Biturbo V8 mild-hybrid diesel engine with 429 bhp and 900 N⋅m (664 lb⋅ft) of torque. Performance is sent through the 8-speed Tiptronic automatic gearbox to its Quattro all-wheel drive system. Euro-spec models have a claimed acceleration of 0–100 km/h (62 mph) in 4.8 seconds (0–60 mph (97 km/h) in 4.6 seconds) with an electronically limited top speed of 249 km/h (155 mph).

The new turbochargers are situated within the “V” of the engine block, which Audi claims creates better engine response. To further reduce the effects of turbo lag, the engine features sequential turbocharging, with only a small charger active at low engine speeds and a larger charger engaging above 2,200rpm. An electric-powered compressor assists the turbocharger when starting and accelerating from lower speeds, compensating for the turbo's lack of boost at low revs by adding extra pressure to the intake to smooth out power delivery.