The Cupra Terramar is now on sale in Australia, and with it, the young Spanish brand finally has a proper family-friendly midsize SUV to serve its showrooms with. It’s a commercially vital model, given its position in Australia’s most popular vehicle segment, but how does a challenger brand like Cupra find a point of difference in such a crowded market? For the Terramar, the answer is ‘performance’, and ‘design’, with a near-premium price not expected to turn off SUV buyers who are looking for something that’s different… in a good way.
The Terramar opens at a relatively high (for a mainstream midsize SUV) retail price of $53,990 for the base Terramar S, or $58,490 drive-away.
The next rung up is the mid-grade Terramar V, which is priced at $61,990 or $66,490 drive-away, while the range is currently capped off by the Terramar VZ at $68,200 or $73,490 drive-away.
It’s a little on the expensive side, but that’s partly made up for with a thick equipment list. All models receive a head-up display, power-operated tailgate (with kick sensor), power-adjustable and heated front seats, a heated steering wheel, tri-zone climate control, a 12.9-inch infotainment display, sat-nav, a wireless charging pad, wireless smartphone integration and LED headlamps.
And that’s just on the 110kW, front-wheel drive base model Terramar S. In fact, most of what you pay for as you step up through the range is what’s underneath – the engine, driveline, and suspension.
The mid-spec Terramar V costs more mainly because of its all-wheel drive hardware and uprated 150kW/320Nm engine. The Terramar VZ flagship justifies its extra spend by packaging a 195kW/400Nm turbo 2.0-litre engine, adaptive Dynamic Chassis Control dampers, stickier tyres, a sportier ‘Cupra’ drive mode, a 12-speaker Sennheiser sound system and clever matrix-beam LED headlamps.
Safety equipment includes a full range of electronic driver aids, including adaptive cruise control, lane assist, blind spot monitoring, forward collision warning with AEB, self-parking, a top-down parking camera and a driver attention monitor.
The Terramar has been awarded a five-star safety rating by ANCAP and is equipped with seven airbags.
Cupra makes a lot of noise about how engaging the Terramar is to drive and thankfully it’s more than just a marketing brag.
Unique front suspension geometry and a standard-issue variable-ratio steering rack are really the secret sauce to giving the Terramar a flavour that’s distinct from its close relative, the VW Tiguan. That’s accentuated in the performance-focused VZ variant by its DCC damper hardware.
Turn-in is crisp, front-end grip is impressive and when the road is a little damp the all-wheel drive system provides great traction under power. The adaptive dampers work fantastically well in the VZ, providing a supple ride in Comfort mode and a much tauter feel in Performance and Cupra mode, without feeling crashy over hard-edged bumps and potholes. As a driver’s SUV, there’s a lot of satisfaction to be had.
On the inside, the driver’s position is easily the best seat in the house. Everything of importance on the dash is angled toward the driver – even the two USB-C ports – and it feels like a jet fighter’s cockpit… even when crawling through traffic. It also looks and feels high-end, thanks to great choices in cabin materials and textures that begs the question: why aren’t more manufacturers doing interiors like this?
A side-effect of having such a single-minded focus on the driver is that the other occupants of the Terramar might feel a little bit left out.
The infotainment screen is difficult to see and interact with from the front passenger seat, and even placing a phone on the wireless charge pad is harder to do from the left side thanks to the centre console’s profoundly asymmetric design.
The bulky backrests of the front sports seats also impinge on the rear seats. Legroom and knee room is decent, but there’s a feeling of claustrophobia from having the large front seats immediately ahead, as well as the dark headlining above.
We also experienced plenty of false alerts from the car’s driver attention monitor, which would often chime at the driver to get their eyes back on the road when they were already doing so. Was it fooled by the glasses worn by our journalist? Quite possibly.
Consider yourself an enthusiast? Forced by circumstance to have just one car in your driveway and it must be family-friendly? The 2025 Cupra Terramar VZ is easily one of the most dynamic options in the segment.
Thanks to some differences in specification it has a price advantage over its mechanically related VW equivalent, the Tiguan 195TSI, while also being more practical than its smaller (but lighter and more powerful) stablemate, the Cupra Formentor VZx.
On top of that, its Catalan flair makes it a refreshingly stylish thing in a segment that’s arguably one of the dullest – and we welcome that. The Terramar VZ isn’t really the most sensible SUV in the market, but we think that’s the whole point.
2025 Cupra Terramar VZ at a glance:
Price: $68,200 (before on-road costs)
Available: Now
Engine: 2.0-litre four-cylinder turbo-petrol
Output: 195kW/400Nm
Transmission: 7-speed dual-clutch automatic
Fuel: 8.2L/100km (ADR Combined)
CO2: 188g/km (ADR Combined)
Safety rating: Five-star (ANCAP 2025)