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Cupra, which launched in Australia in 2022, says most of its sales are not coming from other manufacturers within the wider Volkswagen Group.
Cupra insists that it is not robbing sales from fellow Volkswagen Group brands in Australia, instead saying its buyers are coming over from other 'premium' marques.
Speaking at the launch of its new Terramar medium SUV this week, executives told media that, for the most part, Cupra is bringing in new customers rather than cannibalising sales from the Group.
“We look at where the customer inflows and outflows occur, but the reality of the data is that it's not a majority of our sales coming in from other Volkswagen brands,” Head of Product Jeff Shafer told media, including Drive.
“Part of it is about the customer that we are looking to appeal to … in terms of their mindset. It's a bit further away from the other [VW] Group brands.”
Shafer said some buyers were “upgrading” from mainstream cars, while others were attracted by luxury at a lower price than offered by high-end marques, but stopped short of revealing who it had pinched owners from.
“We have one of the highest conquest rates in the industry,” added Erdem Kizildere, Director of Sales for International Markets at Seat and Cupra.
“Most of our customers are coming from non-[VW] Group brands by significant proportions. Our role is to create those very, let's say, polarised design cars that are also like head turners. And I think that role is unique for us.”
A spokesperson for Cupra Australia said that Terramar especially “straddles” both the premium and mainstream segments.
“I think the other interesting element of Terramar is that due to its specifications, its grade line-up, its price positioning, it's in a unique and enviable position to attract buyers from premium marques as well as some of the mainstream brands.
“We’re also expecting to see some customers come into the Volkswagen Group and to Cupra from brands that you wouldn't traditionally expect because of its excellent interior and exterior design, and handling.”
Earlier this year, Cupra was awarded the title of ‘Trendiest Brand of the Year’ at the Auto Motor und Sport Awards in Hamburg, Germany.
Of a total of 94,531 reader votes counted for the survey, Cupra had a 72 per cent approval rating, with BMW and Porsche taking out the second and third places, respectively.
In 2024, Cupra placed second, fourth in 2023, and sixth in 2022. BMW was first between 2022 and 2024, while Mercedes-Benz has also steadily fallen down the ranks.
“People don't want to drive the cars that their parents and grandparents drove,” said Kizildere.
By the mid-point of this year, Cupra had sold 1614 cars, up 40 per cent, led by the Formentor.
In comparison, Skoda sold 2154, down 27 per cent, Volkswagen 14,776, down 22 per cent, and Audi 6839, down 16 per cent.
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.
