Cupra's new SUV to offer 'wide range' of engines including PHEV in Australia

Cupra Australia is gearing up for a comprehensive product onslaught in 2025, with the star of the show likely to be the all-new Terramar SUV.

Due to launch around mid-way through next year, the 2025 Cupra Terramar will serve as the brand’s first proper entry into the burgeoning mid-size SUV segment, which currently accounts for around 22 per cent of all new vehicles sold in Australia.

Speaking with CarExpert, head of product and marketing for Cupra Australia, Jeff Shafer, said: “I think [the Terramar] will be a real core model for us”.

“It’s right in the heart of the SUV market in Australia – it’s that size that’s not too big and not too small. So, we’ll have three or four drivelines in the Terramar, and have a pretty good offering in terms of what that covers both in price and equipment.”

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When asked if the Terramar will be cutting the existing Ateca’s lunch, Mr Shafer said the two models are pretty different cars and appeal to different customers.

“I think Ateca and Terramar sit in different spaces – definitely, the Terramar is a size up from Ateca. Even today, it’s a different customer that looks at Ateca versus Formentor, even though the size isn’t that different.

“We’ll still see Ateca be firing for us for another year and a bit,” Mr Shafer added.

Revealed in September, the Cupra Terramar is the Spanish brand’s sportier take on the new-generation Volkswagen Tiguan – sharing its German cousin’s MQB evo architecture, drivetrains and tech but in an all-new design.

Measuring 4519mm long, 1863mm wide and 1584mm tall with a 2681mm wheelbase, the Terramar is almost identically sized to the new Tiguan which measures 4539mm/1842mm/1639mm/2680mm.

The height difference will be down to the Terramar’s standard sports suspension and slimline roof racks compared to the Tiguan.

Mr Shafer confirmed a plug-in hybrid will make up one of the “three or four drivelines” coming to Australia, one being the 200kW/400Nm 1.5 TSI e-Hybrid version launched overseas, which offers 112-121km of electric driving range on the WLTP test cycle.

It’s also understood the 195kW/400Nm 2.0 TSI with all-wheel drive is coming Down Under, serving as the performance hero for the time being with a claimed 0-100km/h acceleration time of 5.9 seconds.

This engine is shared with the Tiguan, as well as the facelifted VW Golf GTI and Skoda Octavia RS performance models.

The only other engine confirmed globally at this stage is the 110kW/250Nm 1.5 eTSI mild-hybrid, which achieves a claimed 6.1-6.6L/100km and serves as the entry-level variant. This motor will also serve the entry point to the facelifted Leon and Formentor lineups in 2025.

Full pricing and specifications aren’t confirmed for our market as yet, but we’d wager the Terramar will start in the low $50,000 bracket and head up around the $70,000-$75,000 mark for a fully loaded PHEV.

The Terramar will be part of a wider product offensive from the Cupra brand in 2025, which will see the Formentor and Leon facelifts during the second quarter of 2025, as well as the go-fast 240kW Born VZ electric hatchback sometime during the first half of 2025.

The all-new Tavascan electric crossover is due to arrive around March-April, and the new Leon Sportstourer wagon is earmarked for a July-August introduction – likely with 245kW 2.0 TSI AWD and 200kW 1.5 TSI e-Hybrid options – to round out the lineup Down Under.

Cupra has also confirmed further expansion plans for its dealer and service network, promising a total of 20 points of sale and 25 fully functioning service outlets by the end of 2025, in addition to a further 15 regional ‘service only’ sites.

To the end of October, the Spanish brand has registered 1805 new vehicles, which is down 39.2 per cent on the same January-October period in 2023. Cupra’s October figure of 193 vehicles was also down 56.1 per cent.

However, almost the entire range is getting refreshed in 2025, namely the volume sellers, and with the help of the new Terramar and Tavascan the brand hopes to sell between 8000 and 10,000 vehicles annually towards 2027-2028.

MORE: Everything Cupra Terramar