The second generation Audi Q7 was unveiled in January 2015 at the North American International Auto Show in Detroit. The diesel- and petrol-powered versions were released for retail sales in 2015, followed shortly by diesel-powered plug-in hybrid variant, which is sold in Europe and will be available in the U.S. but not in Canada.

The plug-in hybrid, called the Q7 e-tron TDI Quattro, is powered by a 3.0 TDI V6 turbodiesel engine mated with an electric motor-generator placed in the 8-speed automatic gearbox to provide a maximum output power of 190 kW (250 hp) and a maximum torque of 600 N·m (440 lbf·ft) four-wheel drive. An electronically controlled clutch can disconnect the V6 engine from the rest of the powertrain. The 94 kW (126 hp) electric motor is powered by a 17.3 kWh lithium-ion battery capable of delivering an all-electric range of 54 to 56 km (34 to 35 mi). The Q7 e-tron produces CO₂ emissions between 50 and 48 g/km, and has a fuel consumption of 1.8 to 1.9 l/100 km (160 to 150 mpg_‑imp; 130 to 120 mpg_‑US) under the New European Driving Cycle (NEDC). The Q7 e-tron accelerates from zero to 100 km/h (62.1 mph) in 6.2 seconds in hybrid mode, and zero to 60 km/h (37.3 mph) in 6.5 seconds in all-electric mode. Its top speed in hybrid mode is 230 km/h (140 mph) and 135 km/h (84 mph) in electric mode.

Audi announced a Q7 e-tron TFSI at the 2015 Shanghai Motor Show, developed specially for Asian markets (China, South Korea, Singapore and Japan). Its 2.0 TFSI and electric motor deliver 270 kW (367 hp) and 700 Nm (516.3 lb-ft) of system torque – enough to accelerate from 0 to 100 km/h (62.1 mph) in 5.9 seconds and for a top speed of 220 km/h (136.7 mph). The standard consumption of 2.5 liters of fuel (94.1 US mpg) corresponds to CO2 emissions of less than 60 grams per kilometer (96.6 g/mi). All-electric range will be up to 53 km (33 mi).

The Audi Q7 2.0 TFSI (1984 cc, 185 kW / 252 hp) is also available in the Russian and Canadian market.

The first units of the diesel-powered Audi Q7 e-tron were registered in Germany in April 2015. Cumulative sales of the plug-in hybrid in Germany totaled 344 units through April 2016.