2026 Cupra Terramar V long-term review: Introduction

• Doors and Seats

  

  NA

• Engine

  

  NA

• Engine Power

  

  150kW, 320Nm

• Fuel

  

  Petrol 7.2L/100KM

• Transmission

  

  NA

• Warranty

  

  NA

• Ancap Safety

  

  5/5 star (2025)

Family Cars Guide

With nearly 70 brands on sale in Australia, you’d be forgiven for not knowing every single make and model currently on sale. 

It’s a list that is constantly evolving as well, with a steady influx of new makes and models vying for attention and market share. 

SUVs are Australia’s most popular new-car segment in terms of total volume. This modern-day family car accounts for approximately 60 per cent of overall sales in the country.

That’s nearly two in three vehicles sold. We all know about the Toyota RAV4, Mazda CX-5 and Mitsubishi Outlander. But what about some of the more slept-on options out there? 

I would argue one of the most forgotten options in the medium SUV segment is the Cupra Terramar. And we've got one here with the idea of getting to know it a whole lot better.

Car nerds will pick up on the Cupra connection to Seat, a Spanish car maker that dates back to 1950. Seat – which is nowadays part of the Volkswagen empire – used to have Cupra as its own performance division.

But in 2018, the decision was made to roll out Cupra as a standalone brand. 

This newfound brand made its way to Australia a few years later, joining the likes of Volkswagen, Skoda and Audi as a corporate cousin, but separate entity with separate showrooms.

That means what we have here is similar under the skin to the Audi Q3, Volkswagen Tiguan and Skoda Kodiaq. A similar range of four-cylinder turbocharged petrol engines, similar seven-speed dual-clutch automatic transmission, and similar front-wheel-drive or all-wheel-drive systems.

While the hardware is shared, it’s the tuning and calibration that are distinct to each brand and model. Along with – obviously – the design in and out, and the range of standard equipment included for the asking price.

There are four variants to choose from in the Terramar range in 2026. At the most expensive end of the list is the plug-in hybrid Terramar VZe with 200kW at $77,990 plus on-road costs, while the entry-level Terramar S gets a 1.5-litre turbocharged engine with a relatively paltry 110kW and 250Nm for $58,490 drive-away.

What we have here sits somewhere around the middle of the road. It is one step below the Terramar VZ, with more grunt (195kW/400Nm) and a higher asking price ($73,490 drive-away), but our 150kW/320Nm Terramar V goes for $66,490 drive-away.

The standard kit is quite generous across the range, which is what you would expect for the premium pricing of the Terramar. This range of SUVs is priced a lot higher than what you get in other mainstream options, but the range of inclusions does help the value equation somewhat.

Along with upgraded brakes and 19-inch alloy wheels, the Terramar V only gets the bigger donk and all-wheel drive for the extra $8000 in asking price.

There are sporty-styled seats with electric adjustment and heating up front, three-zone climate control, wireless phone charging, a 360-degree camera system, and an electric tailgate with a kick sensor. 

There’s also a 15-inch infotainment display, 10.25-inch digital instrument cluster and head-up display. Not bad.

Our test car also gets the optional Leather and Sound Package, which gets you deep burgundy leather seat trimming and an upgraded Sennheiser sound system for $1600. I could live without the former, but the 12 speakers and 390-watt amplifier of the latter are welcome upgrades. 

We’ve got this particular Terramar V for a three-month test, in which we’ll be testing and exploring all of its strengths and weaknesses in thorough detail.

Commuting, family hauling, road-tripping and back-road bashing are all on the menu over the next few months.

It’s also a good opportunity to answer questions from readers on anything regarding the Cupra Terramar. So fire 'em through, and we’ll do our best to answer them for you while we have the car.

Why do I say this is a forgotten option in the medium SUV space? It only racks up 20-30 sales each month, according to official VFACTS data.

You could say it might take some time to build momentum in the market, but other models often enjoy a more popular honeymoon period after launch.

Clearly, Terramar sales agents won't be needing any wooden sticks to keep customers at bay. The Toyota RAV4 outsold this model at a rate of about 200:1.

But in the meantime, here are some initial impressions of this less popular option in the medium SUV space.

Cupra pitches itself as more of a driver-oriented brand in the Volkswagen empire, with a sharper experience from behind the wheel than you might find from something like a Volkswagen or Skoda. 

That checks out as well. There’s a sharpness to the steering and an able-bodied feeling through the corners. Body roll is kept well in check, and the all-wheel-drive system offers plenty of grip. If you prefer more of a connected feel from behind the wheel, this car carries itself well.

Keen drivers will be wishing they had the extra grunt of the more expensive VZ variant, and you can feel that there is scope for this chassis to handle more. But the extra bit of poise felt through the steering and roadholding is something that many would appreciate. How badly does it affect everyday comfort and driveability? First impressions are pretty good, but let us spend a bit more time exploring.

ISOFIX and top-tether points are available for the rear outboard seats, and there’s enough room to get a rearward-facing seat into the second row. The sliding second row can help apportion space as you need it too. This allows for adjustable levels of boot space from 508 to 642 litres.

That's a solid number, and you'll find a space-saving spare wheel ensconced under the floor in case you get a flat.

The sporty front-seat design does eat up a bit of visibility, though, and the rear bench is too narrow to fit three across. The upgraded seat trimming feels good, and doesn't harbour too much muck and crumbs from kids when it comes time to clean and vacuum.

The boot can be opened via the key fob, which is handy. But we couldn’t close it using the same process. A minor gripe, but an oversight that might annoy you.

Fuel economy currently ranges from 9.0 to 12.0 litres per 100 kilometres across separate trips, depending on driving conditions and driver behaviour. As time goes on, we'll see this settle down to a more indicative average.

Like I mentioned, this is the first of our three months with the Cupra Terramar medium SUV. We're looking to explore it more deeply, and ask some questions: Why is this such an overlooked option in the medium SUV segment? Should it be selling better, and what are its main strengths?

It's going to be interesting to see what the Terramar can offer above and beyond other mainstream options in the densely populated medium SUV segment, and whether it can keep true to the promise of providing something for the driver, as well as something for the rest of the family at the same time.

Family Cars Guide

Sam Purcell has been writing about cars, four-wheel driving and camping since 2013, and obsessed with anything that goes brum-brum longer than he can remember. Sam joined the team at CarAdvice/Drive as the off-road Editor in 2018, after cutting his teeth at Unsealed 4X4 and Pat Callinan’s 4X4 Adventures. Off-road writer of the Year, Winner - Sam Purcell

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