2025 Cupra Terramar VZ review

What do you get when you send a Volkswagen Tiguan on exchange to Barcelona? Well, probably the Cupra Terramar.

The performance-leaning Spanish subsidiary of the Volkswagen Group is making strides (globally) with continued growth and is currently in the midst of a big product offensive. Next cab off the rank? A mid-size SUV to indirectly replace the smaller Ateca which is nearing the end of its life.

Cupra has been Hungary (you’ll get the pun in a moment) to get in on the action that forms Australia’s highest-volume and arguably most competitive new-car segment.

Now, the Hungarian-sourced Terramar (teehee!) has landed in Australian showrooms pitched as a sexier, spicier alternative to the related VW Tiguan and a litany of other competitors in this hotly-contested segment.

The Terramar arrives with petrol and mild-hybrid power at launch, with a 200kW plug-in hybrid (PHEV) variant offering more than 100km of electric driving range due here in November. If you’re wondering, that’s two more electrified options than Volkswagen has managed to offer locally with the related Tiguan.

Cupra says the Terramar, despite competing in a fairly mundane medium SUV market in terms of design, continues the brand’s “focus on style and design, positioning that is neither luxury nor mainstream, and a clear focus on the driver and driving dynamics”.

Has the Barcelona-based brand succeeded in offering a fun-to-drive mid-size crossover for the masses? We joined the Australian launch drive in Melbourne to find out.

How much does the Cupra Terramar cost?

The Terramar range in Australia opens from $53,990 plus on-road costs or $58,490 drive-away, with the flagship VZ asking for $68,200 plus on-roads or $73,490 drive-away before options.

The Terramar S and VZ have already landed in the country, while first production versions of the V for Australia have been built and are on the water ahead of a scheduled September arrival.

Cupra will complete the range with the VZe PHEV later this year, earmarked for a November launch. Pricing and specifications for the plug-in Terramar are still to be confirmed.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

What is the Cupra Terramar like on the inside?

While you might spot displays and switchgear shared with other VW Group products, the Terramar has a very different look and feel inside to the Tiguan with which it shares its DNA.

Cupra’s driver-focused ethos sees the dashboard wrap around the driver, with all displays and key switchgear angled towards the pilot, accompanied by flourishes of the brand’s signature copper highlights and Audi-esque ambient lighting details.

In the S and V the standard upholstery is a black Dinamica suede combination, but in the flagship VZ you get this lovely Deep Burgundy leather trim that is unlike anything you’ll see at this end of the market. You can option the coloured cowhide on lower grades as part of the $1600 Leather and Sound Package.

The seats themselves are comfortable to sit in, with solid bolstering that doesn’t overdo it and allows for different size frames. Full electric adjustment with driver memory is standard, as is heating – but no ventilation, sadly. At least the range of adjustment is great so you can find a tailored driving position for your height and build.

Perceived build quality is very good, with plenty of soft-touch materials and contrast stitching details that make this interior feel a little more special, and the hard silver plastic elements feature parametric details which like the copper bits add a bit of spice and flair, too. It’s also good to see tactile, hard buttons on the steering wheel – and I love the satellite buttons.

Displays include a 10.25-inch digital instrument cluster which really apes the old Audi Sport (ie: S and RS) layout with the available centre dial, while the 12.9-inch freestanding touchscreen offers DAB+ digital radio, wireless Apple CarPlay and Android Auto, in addition to embedded satellite navigation – but, as yet, no connected functionality.

As we’ve come to expect from the VW Group, the displays offer crisp resolution and snappy animations. And while Cupra goes for an edgier look and sportier typeface, everything is pretty easy to read. You also get a head-up display as standard, which is clear and simple to keep key information in your line of sight.

Cupra’s latest interface also permanently has a toolbar with the climate controls at the base of the screen, augmenting the polarising touch sliders below which now are illuminated – hallelujah! While this will never be as simple and user-friendly as a physical pod of switchgear, this is a big improvement over the original iteration of the company’s capacitive touch tech.

The standard Cupra sound system in the Terramar S is already pretty good, but the 12-speaker Sennheiser premium audio is very good, particularly at this end of the market. It offers clear and full sound without shaking the windows or distorting the audio. The bass and subwoofer can be dialled up to concert or nightclub levels of ‘doof’, too.

Storage is decent, with a pair of toothed cupholders in the centre console sitting alongside a slot for your key. Ahead of that there’s a cubby with a phone holder that doubles as a charging pad, and there are decent bins in the doors to supplement the storage cubby under the centre armrest.

The ambient lighting not only adorns the dashboard but also through the cutouts in the suede-trimmed door cards, much like the latest Audi A3 and Q3 – fitting, given the Terramar hails from Audi’s Hungarian factory which produces the Q3. There’s also Cupra’s interesting interactive light under the windscreen that shows indicators as well as alerts for the assistance systems.

The second row is a good size for growing families, with the 2681mm wheelbase affording generous leg and knee room even for taller adults like 6’1″ me. The backs of the front seats are scalloped out to allow for knobbly knees, too.

Unlike the front sports seats, the rear bench is less bolstered, which makes it easier to squeeze three across back there if you need – but I’d only do this for short journeys if you need to. The rear floor is pretty flat, which is a plus, but the protruding rear console eats into rear legroom a little.

Said rear console does, however, house the directional rear air vents, which are also hooked up to a third zone of climate control as standard. A pair of USB-C charge outlets live further down.

As I’ve found in other VW Group products with chunky sports seats though, forward visibility can be obstructed for shorter passengers, which could be an issue for kids or teenagers prone to motion sickness. The rear windows aren’t exactly huge, either.

Interestingly, the Terramar doesn’t offer map pockets on the front seatbacks, though there is a fold-down centre armrest with cupholders, and bottle holders in the doors to stow your kids’ or passengers’ stuff. Further, you get the requisite ISOFIX and top-tether points for child seats.

Behind the second row, there’s a 540-litre cargo area with the second-row in its rearmost position (it slides on rails), opening up to a maximum 1415L with the rear bench folded. When in the latter position, the floor is even and mostly flat, which is great if you’re stowing longer items after a trip to IKEA.

The rear seats also split 40:20:40 to accommodate skis or the like but still need to use the two outer chairs, and there’s an underfloor storage area that houses the space-saver spare wheel. Also worth noting is that if you opt for the $4200 Akebono brakes on the VZ, you remove the spare wheel and sub-in a tyre repair kit.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

What’s under the bonnet?

The VZ is the most powerful Terramar variant at launch, featuring the same 195kW ‘EA888’ 2.0-litre turbo four as mid-tier VW Group performance heroes like the Golf GTI and Skoda Octavia RS.

*Full specifications for Terramar VZe e-Hybrid are yet TBC

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

How does the Cupra Terramar drive?

Our launch drive took us from Cupra’s Richmond ‘Garage’ in Melbourne’s inner-east out to Healesville and Kinglake in Victoria’s southeast, then back into the CBD. As you’d expect, we covered a range of different roads and conditions.

We spent some time in the entry-level Terramar S with its mild-hybrid drivetrain, but for this particular review we’ll focus on the VZ in which we spent the most time. Stay tuned for a follow-up article covering the mHEV.

Riding on big 20-inch alloy wheels and relatively low-profile Continental performance tyres, you might expect the Terramar VZ to be a touch terse and unforgiving over pockmarked city streets on patchy B-roads, but you’d be wrong.

Being a Cupra, it leans into the firmer and sportier side of the ride/handling equation, but even in Cupra mode the Terramar VZ remained well sorted and impressively comfortable over a wide range of urban and rural blacktop – which lately has been littered with sections of construction and ripped-up tarmac.

It was a similar story in the passively-damped Terramar S, so I imagine it will be the same for the mid-spec Terramar V, which wasn’t available to test for the launch. Insulation from road and wind noise is also good for the segment.

Before long you’ll also notice the wonderful feel to the Terramar’s steering, which we rate as among the best in this segment – mainstream or premium – in terms of feel and accuracy.

While it’s not quite Porsche-good in terms of feedback, there’s a wonderful linearity in the way the progressive ratio builds up weight as you increase lock and speed, and the accuracy with which the front wheels respond to your steering inputs.

The Terramar is satisfying just putting around the city or the ‘burbs, but really comes into its own when you’re carving up a winding B-road like we did ascending up Meyers Creek Rd through the Toolangi Forest.

Hitting the steering-mounted Cupra button (very Audi R8), the Terramar VZ’s most aggressive setting really dials up the steering and throttle response without making it too twitchy or tense, as can often be the case with ‘sporty’ SUVs.

It feels like a very balanced and capable high-riding grand tourer, kind of like a budget Porsche Macan – the petrol one, just to be clear. To be fair, this has basically the same engine as the outgoing Macan and Macan T, but it’s quicker.

While not as sharp overall as the old Tiguan R, there’s perhaps a more natural and fluid feel to the handling and body control that makes it more fun, more of the time.

In Cupra mode you also get a synthesised engine sound that’s meant to enhance the EA888’s note to give it a bit more meat. However, it’s less of an enhancement of the engine’s natural sound a more an overlay of something else.

It’s sort of somewhere between rumbly boxer and brassy five-pot, and whether you like it or not is a matter of personal taste. I didn’t hate it, but I can understand why some journalists found it a little contrived.

The more spirited stints really showed me that this thing is actually quite quick. All 400Nm comes on song at just 1650rpm, meaning there’s heaps of shove from quite low down, and it pulls hard all the way to peak power output at 5000-6500rpm.

If you’re in Cupra mode and you pull one of the paddles it’ll switch to manual mode as well, allowing you to take full control of the gears yourself. The DSG transmission offers very quick shifts in manual or S mode, with no perceptible interruption to torque delivery under hard throttle applications.

That said, in regular driving you do get the odd occasion where you can catch the DSG out when setting off in first or rolling through a slip lane and getting caught out between second and third. It’s not necessarily clunky or unrefined, it can just be a little slow to react even with its plentiful torque.

The all-wheel drive system – which Cupra calls 4Drive – offers good on-demand grip despite its front-end bias, and is very quick to react. Some damp sections of twisty roads through the Toolangi Forest were a good test of the Terramar’s ability to detect slip and put its power down, and it did a very clean job of it.

Additionally, the VZ’s Continental performance tyres felt more suited to dynamic driving than the standard S’s Kumho-branded economy rubber. The base car with FWD felt less confident driving harder, which is to be expected.

The assistance systems are all pretty good, as we’ve come to expect from VW Group vehicles. Travel Assist – which combines adaptive cruise, adaptive lane guidance and traffic jam assist functions – gives you semi-autonomous highway driving capability and is regarded one of the benchmark systems at this end of the market.

Standard blind-spot and rear cross-traffic alerts are a handy set of extra eyes given the Terramar’s thick rear pillars, as is the standard surround camera system which makes parking a cinch. The Terramar also gets speed sign recognition and speed limit assistance, which can automatically adapt your cruise speed to the signposted limit.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

What do you get?

The VZ sits above the S and V grades in the local Terramar lineup.

2025 Cupra Terramar S equipment highlights:

• 18-inch ‘Atomic’ alloys – Black and Silver
• LED headlights
• LED ‘diamond’ daytime running lights
• LED ‘coast to coast’ tail-lights incl. Cupra logo
• Power tailgate incl. kick sensor
• Smart entry, push-button start
• Drive profile selection – Comfort, Performance, Individual
• Sports bucket front seats – Soul Black Dinamica upholstery
• Powered, heated front seats incl. driver memory function
• Head-up display
• Supersport heated steering wheel incl. satellite buttons
• 9-speaker Cupra sound system
• 3-zone climate control
• 10.25-inch digital cockpit
• 12.9-inch touchscreen navigation system
• Wireless Apple CarPlay
• Wireless Android Auto
• Configurable ambient interior lighting
• Auto-dimming interior mirror
• Wireless phone charging
• 360-degree camera incl. dynamic guidelines

Terramar V adds:

• 19-inch ‘Cosmic’ alloys – Black and Copper
• Upgraded front brake package
• Hill descent control

Terramar VZ adds:

• 20-inch ‘Hadron’ alloys – Black and Copper
• DCC Pro adaptive suspension
• Deep Burgundy leather-appointed upholstery
• 12-speaker Sennheiser premium audio
• Customisable engine sound modelling
• Matrix Ultra LED headlights
• Upgraded rear brake package
• ‘CUPRA’ drive profile

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

Options

Several packages and single-item options are offered depending on variant.

Leather & Sound Package: $1600 (S + V)

• Leather-appointed trim – Deep Burgundy
• 12-speaker Sennheiser premium audio

Standalone options include:

• Akebono performance front brakes: $4200 (VZ)
• Panoramic sunroof: $2000
• Premium paint: $620

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

Colours

A total of seven exterior paint finishes are available for the Cupra Terramar, with two commanding price premiums.

Standard: $NCO

• Glacial White
• Fiord Blue
• Timanfaya Grey
• Midnight Black
• Cosmos Blue

Premium paint: $620

• Dark Void
• Graphene Grey

Later this year (MY26 production), you’ll also be able to opt for Century Bronze or Enceladus Grey matte finishes for $2900.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

Is the Cupra Terramar safe?

The Cupra Terramar has a five-star ANCAP safety rating, based on 2025 Euro NCAP tests.

Standard safety features include:

• 7 airbags
• Adaptive cruise control with ‘follow to stop’
• Travel Assist
  • Adaptive cruise control
  • Lane centring assist
  • Traffic jam assist
• Front Assist – AEB
  • Forward collision warning
  • Pedestrian detection
  • Cyclist detection
  • Turn assist, swerve support
• Speed sign recognition
• Lane Assist
  • Lane departure warning
  • Lane-keep assist
• Light Assist – auto high-beam
• Side Assist – blind-spot monitor
• Exit Assist – rear cross-traffic alert
• Exit warning
• Top View – 360-degree cameras
• Parking sensors – front, rear
• Park assist
• Driver attention monitor
• Tyre pressure monitor

The Terramar VZ adds Matrix Ultra LED headlights with adaptive high-beam.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

How much does the Cupra Terramar cost to run?

The Terramar is covered by Cupra’s five year, unlimited-kilometre warranty in Australia. 24-hour roadside assistance is also included for the warranty period.

To see how the Cupra Terramar lines up against the competition, check out our comparison tool

CarExpert’s Take on the Cupra Terramar

The Cupra Terramar is arguably the new driver’s pick of the hotly-contested medium SUV segment, especially alongside anything priced under the $75,000 bracket.

Not just a sporty looker, the flagship Terramar VZ blends keen dynamics and dialled-in driver controls with brisk performance and good all-round practicality and usability.

Cool colour options and a nicely presented, driver-oriented cabin are also key selling points. Further, it’s decent value, lining up well against its Tiguan cousin and sitting somewhere between mainstream and premium rivals in terms of pricing.

The VZ is the Terramar that best embodies the Spanish brand’s driver-first ethos, though its solid foundations give even the base mild-hybrid an engaging drive and no doubt sets the tone for the incoming V and VZe models, too.

There’s something to be said about Cupra defying the odds and giving Australia the same drivetrains and electrification options out of the European market, whereas its VW and Skoda stablemates continue without hybridised versions of their key models to local buyers for the time being.

The Terramar – and the Cupra brand in general – won’t be for everyone. Cupra executives have admitted that themselves, and instead they’ve really honed in on their target market and really aimed to differentiate their products from the existing cohort.

In the case of the Terramar, it makes a great case for those currently in a Formentor that want more space, as well as mid-size SUV buyers that don’t want to sacrifice driver enjoyment or spend over six figures. It’s a formula that would previously have required you to visit a BMW or Porsche showroom.

Areas for improvement? The fiddly touch sliders won’t be to everyone’s taste, nor will the burgundy leather trim. Some plastic trims on the centre console are more mainstream than premium, and the VZ’s pricing is a decent ask above even flagship versions of mainstream-branded competition.

It’s unclear if there will ever be an even hotter version in the realm of the old Tiguan R’s 235kW or even the 221kW Ateca VZx, but as it stands Cupra’s new flagship SUV already has a lot to offer keen drivers shopping for a family wagon, for whom the Terramar is most definitely worth a look.

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MORE: Explore the Cupra Terramar showroom