2025 Cupra Terramar VZ Unveiled

  • Marco
  • Aug 10, 2025

Introduction to the Cupra Terramar

When a Volkswagen Tiguan is sent for an exchange in Barcelona, it may very well emerge as the Cupra Terramar. This performance-focused Spanish subsidiary of the Volkswagen Group is making significant strides globally with its ongoing product offensive. The Terramar is set to replace the Ateca, which is nearing the end of its lifecycle. In Australia, Cupra has entered the market, aiming to provide a more stylish and dynamic alternative to the Tiguan and other competitors in the mid-size SUV segment.

The Terramar arrives with petrol and mild-hybrid power at launch, with a 200kW plug-in hybrid (PHEV) variant expected in November. This offers more than 100km of electric driving range, providing two more electrified options than Volkswagen has managed to offer locally with the related Tiguan.

Cupra emphasizes its focus on style and design, positioning itself between luxury and mainstream, with a clear focus on the driver and driving dynamics. The brand aims to offer a fun-to-drive mid-size crossover for the masses, and the Australian launch drive in Melbourne sought to evaluate this claim.

Pricing and Availability

In Australia, the Terramar range starts 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 the V for Australia has been built and is en route for a September arrival. The VZe PHEV will be launched in November, with pricing and specifications yet to be confirmed.

Interior Features

While the Terramar shares its DNA with the Tiguan, it presents a different look and feel inside. The driver-focused ethos sees the dashboard wrap around the driver, with all displays and key switchgear angled towards the pilot. The interior features copper highlights and Audi-esque ambient lighting details. The standard upholstery in the S and V is a black Dinamica suede combination, while the VZ offers Deep Burgundy leather trim.

The seats are comfortable, with solid bolstering that allows for different size frames. Full electric adjustment with driver memory is standard, as is heating. The interior features soft-touch materials and contrast stitching, with hard silver plastic elements featuring parametric details. Displays include a 10.25-inch digital instrument cluster and a 12.9-inch freestanding touchscreen offering DAB+ digital radio, wireless Apple CarPlay and Android Auto, along with embedded satellite navigation.

Performance and Driving Experience

The VZ is the most powerful variant at launch, featuring the same 195kW ‘EA888’ 2.0-litre turbo four as mid-tier VW Group performance heroes. The Terramar VZ provides a firm and sporty ride, remaining comfortable over a wide range of urban and rural blacktop. The steering is among the best in the segment, offering linearity and accuracy. The vehicle performs well on winding B-roads, with a balanced and capable handling experience.

The DSG transmission offers quick shifts in manual or S mode, with no perceptible interruption to torque delivery under hard throttle applications. The all-wheel drive system offers good on-demand grip despite its front-end bias, reacting quickly to detect slip and put power down.

Safety and Practicality

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, Travel Assist, and various driver assistance systems. The Terramar VZ adds Matrix Ultra LED headlights with adaptive high-beam.

Practicality is also a strong point, with a 540-litre cargo area and a maximum of 1415L when the rear bench is folded. The rear seats split 40:20:40, accommodating skis or similar items. An underfloor storage area houses the space-saver spare wheel, with an option for a tyre repair kit on the VZ.

Equipment Highlights

The VZ sits above the S and V grades in the local Terramar lineup. Key equipment highlights include 20-inch alloys, matrix ultra LED headlights, 12-speaker Sennheiser premium audio, and customisable engine sound modelling. Additional options include Akebono performance front brakes, a panoramic sunroof, and premium paint.

Colours and Options

Seven exterior paint finishes are available, with two commanding price premiums. Premium paint options include Dark Void and Graphene Grey, with matte finishes available later in the year. Options such as the Leather & Sound Package and standalone items like Akebono performance front brakes are offered depending on the variant.

Running Costs and Warranty

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

Final Thoughts

The Cupra Terramar is a compelling choice in the mid-size SUV segment, offering keen dynamics, dialled-in driver controls, and brisk performance. Its cool colour options and driver-oriented cabin make it a standout. While not for everyone, the Terramar presents a great case for those seeking more space than the Formentor or looking for a family wagon without sacrificing driver enjoyment. It stands out as a worthy contender in the market.

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