Audi's local arm has defended its premium price positioning for the all-new Q2 baby SUV, saying it will go with "what the market wants" rather than try to directly compete with more affordable mainstream rivals.

When questioned on the Q2's value proposition against something like a Mazda CX-3 - which starts at less than half the price of the most affordable Q2 - Anna Burgdorf, general manager for corporate communications at Audi Australia, said the company has carefully assessed the demands of the market.

"We see an incredibly good-quality small car with a high level of standard specification, that's going to meet the needs of our consumers," she said.

"We're really pleased with the pricing that we've achieved for the Q2."

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Despite the Q2 starting at $41,100 before on-road costs for the entry-level 1.4 TFSI, Audi argues it has loaded its smallest Q-model with features, including satellite navigation, leather seats, alloy wheels, rear-view camera, autonomous emergency braking (AEB) with pedestrian detection, Apple CarPlay and Android Auto, along with a WiFi hotspot, Google Earth and Google Search functionality - many features that aren't offered at all by more affordable mainstream rivals.

Additionally, buyers can choose from several affordable option packages, which add items like adaptive cruise control, automatic parking assistant, Audi's 12.3-inch Virtual Cockpit digital instrument cluster, and LED ambient lighting.

The company has already received 700 orders for its newest family member, with many being the highly-specified Launch Edition, which starts at $49,900 and adds S Line exterior styling, 19-inch alloy wheels, and the Assistance package - which includes adaptive cruise control and active lane keep assist - as standard.

Stay tuned to CarAdvice for our launch review of the 2017 Audi Q2 this Friday.

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What do you think of the Q2's pricing? Let us know in the comments below.