Audi will attempt to win back ground lost to arch-rival BMW when it launches an all-new model in the large sport utility segment later this year. Smaller all-round but still the biggest car of its kind, the next-generation Q7 is poised to overtake the BMW X5 with packaging offering dramatic improvements in value, operating costs and company car tax when it arrives in September, believes Audi UK regional fleet manager David Hanna.

"The original Q7 brought us our most loyal customers when it arrived 11 years ago and they have kept with the model as it has gone through revisions. I'm confident they will be delighted with the new car, but class-leading fuel economy and CO2 performance plus an 8% reduction in BIK are certain to drive a stronger fleet mix.

"Our view is that corporate registrations will grow from 50% to 65% of sales, because we are sure this vehicle will be of particular appeal to the SME driver who has a large family and wants practical transport that is also sophisticated and comes with a great driving experience," he said.

A remarkable 240kg might have been trimmed from its weight, but the seven-seat Q7 still appears big and chunky at the kerbside. However, the beefy go-anywhere flagship generally belies its generous proportions on the road with its powerful new diesel engine and revised eight-speed auto transmission, delivering an impressively quiet and refined performance. It even allows the car to offer sporty driving dynamics, as it surges away from the rest in style, sweeps around bends in a confident manner and cruises with aplomb.

Shorter and narrower than before, the new model is significantly bigger on the inside, with greater shoulder and headroom for front and second row occupants along with easier access. A lower sill height aids loading and improves practicality and 770 litres of luggage space is now available with all seats in place, stretching to a whopping 1,955 litres with both rear rows folded.

As ever, Audi retains the benchmark for standards of fit, finish and interior detailing and strengthens its premium positioning with a standard equipment list that now includes four-zone electronic climate control, electric operation for third row seats and tailgate, privacy glass and sweeping rear indicators. In addition, extra technology in the form of all-weather LED headlights that reduce glare in poor visibility, pedestrian recognition, hill descent control and front and rear parking sensors make the S line a higher-value package in spite of a 3% price hike.

"On a specification-adjusted basis, the new Q7 is packaged to be 4% cheaper than the model it is replacing – it's a far better proposition for the corporate motorist," said Hanna.