Cupra Australia expects sales of its high-performance Cupra Terramar VZ to take the largest share of the pie initially, with interest growing in the plug-in hybrid – due here in 2026 – steadily over time.
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Spanish brand Cupra expects sales of its petrol-powered Terramar medium SUV to outstrip the plug-in hybrid version initially, as “petrol-heads are defending” in the face of tightening emissions standards globally.
Cupra launched the Terramar in Australia in recent weeks, with two petrol variants available at first, one of which has mild-hybrid assistance, another petrol on its way and a plug-in hybrid to follow next year.
The first two models to arrive were the entry-level S mild-hybrid and high-performance VZ in July 2025, ahead of the mid-spec V in September, and the VZe PHEV sometime in 2026.
“We were expecting our VZ demand to go down [with the introduction of the New Vehicle Efficiency Standard (NVES)], but it has actually been the opposite.
“We have a huge take-up rate of the VZ cars; the petrol heads are defending, I would say, everywhere,” Erdem Kizildere, Director of Sales for International Markets at Seat and Cupra, told media, including Drive.
“From the global view, you see a huge interest in the VZ versions because, as I said, going back to the petrol-head community, they were waiting for this mid-sized SUV from the brand for a while. It has a very high take-up rate, and we have a very long order book right now.”
“Within the Terramar range, we expect the VZ to be the biggest seller. And I think between the S and the V, we'll see them at a fairly similar level, depending on customer needs,” added Cupra Australia’s Head of Product, Jeff Shafer.
“The V brings all-wheel drive, and some customers are really looking for that, but for people who are looking at more of the style and the visual appeal, and using the car more in an urban environment, the S might be the right choice for them.”
Powering the Terramar S is a 1.5-litre turbocharged four-cylinder petrol engine developing 110kW and 250Nm and aided by a 48-volt mild-hybrid system, matched with a seven-speed dual-clutch automatic transmission and front-wheel drive.
Meanwhile, the V swaps the 1.5 for a 150kW/320Nm 2.0-litre turbo-petrol engine, mated to the same seven-speed auto, but with an all-wheel-drive system, and the VZ upgrades to a 195kW/400Nm version.
When it arrives, the VZe is expected to combine the 1.5-litre turbo engine from the S with an electric motor and 19.7kWh battery for a joint power output of 200kW, with power going to the front wheels only.
According to Shafer, getting Aussies into the VZe plug-in hybrid Terramar might take a bit longer, as the local appetite for PHEV technology evolves.
“I think the VZe will probably be a little bit of a slow burn. Plug-in hybrid technology, I think, is starting to emerge as a more understood part of the Australian market,” Shafer said.
“With the incentives up until the end of March, that gave a bit of traction to people to get into plug-in hybrids and started to understand what they do much better than maybe in the past. And I think with NVES coming into play, we're seeing plug-in hybrids grow across the competitive landscape.
“I think sometimes the market starts to define itself, and that actually helps grow the overall pie, let's say. But I think it'll grow over the life of the vehicle.”
In terms of fuel economy, the mild-hybrid-assisted Terramar S is claimed to use 5.7L/100km of 95-octane petrol, with the V at 7.2L/100km and the VZ 8.2L/100km, all based on lab testing.
The VZe, however, is rated to use just 1.8L/100km and claims an electric-only driving range of 100km.
Shafer told media that the Terramar arriving in Australia with the Volkswagen Group’s second-generation plug-in hybrid system, with more driving range and faster charging capabilities, helps it appeal to a wider range of customers, which Kizildere said includes businesses.
“We also see (globally) a very interesting demand from the corporate customers on plug-in hybrids. I also expect this to be a part of the journey because a lot of companies are introducing green fleet policies for their company cars.”
Prices for the Terramar start from $53,990 plus on-road costs for the S and go up to $68,200 for the VZ. Pricing for the VZe has yet to be confirmed.
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A born-and-bred newshound, Kathryn has worked her way up through the ranks reporting for, and later editing, two renowned UK regional newspapers and websites, before moving on to join the digital newsdesk of one of the world’s most popular newspapers – The Sun. More recently, she’s done a short stint in PR in the not-for-profit sector, and led the news team at Wheels Media.
