The redesigned Q3 is expected to be longer and wider than the current edition, significantly increasing cargo space.
Audi is reportedly on track to launch its next-generation Q3 by mid-2018.
The revamped Q3 is expected to grow as Audi attempts to create a wider gap above the Q2, which serves as the new smallest crossover in the Q family.
Auto Motor und Sport claims the new Q3 will be longer and wider with a stretched wheelbase. Overall height is said to remain unchanged, likely giving the crossover a sportier car-like stance.
Volkswagen Group's MQB platform architecture is expected to be used for the redesign, potentially shedding weight. The AMS report claims the lineup will get more efficient engines and a new SQ3 variant with around 400 horsepower.
The current-generation Q3 is still a strong performer in the US market, though its seven-percent gain in the first half of the year pales in comparison to the double-digit rise sustained by the larger and more expensive Q5 and Q7.