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It is priced at Rs. 3,905,000 (ex-showroom Maharashtra).
Deliveries to customers will begin in April, the company said in a press release.
"We are confident that the addition of the powerful 2.0 TDI q engine to the Audi Q5 range in India will strengthen and sustain our leadership position in the luxury SUV segment.
The all new Audi Q5 2.0 TDI q, resonates higher efficiency and dynamic performance with its new engine and refreshed array of characteristics...," Audi India Head Michael Perschke said.
The Audi Q5 range is also powered by a petrol engine - the 2.0 TFSI q - and a diesel engine - the 3.0 TDI q.
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Audi India sold 3003 cars in 2010, exceeding targets again to achieve a record growth of 81 per cent.
"This encouraging performance reinforces the increased aspiration for technical finesse and progressive sophistication among luxury automotive customers in India.
Audi India will continue to expand its product line-up and deliver path-breaking and award winning cars to cater to this rising need," Perschke said.
Audi India is also focused at strengthening its dealer network across India, the release said.
The Audi model range in India includes the Audi A4, Audi A6, Audi A8, Audi Q5, Audi Q7, Audi TT, the super sports car Audi R8 and the recently launched Audi R8 Spyder.