Audi S3 vs Cupra Terramar

What's the difference?

The updated Audi S3 Sportback is a fun-sized dynamo with impressive outputs and athletic road manners. It’s missing a few premium features, but its compact size paired with a gutsy engine makes it a compelling option for drivers who don’t want to compromise on performance (just space).

Creating a model-shared product that’s selling into a hotly contested – and crowded – marketplace is a great way to wind up with something derivative and easily overlooked. But Cupra seems to have managed to avoid that with an end result that is distinctive and has its own character within the VW family. In top-shelf VZ form, the Terramar is an entertaining drive and there’s enough driver involvement for it to be short-listed by anybody who values the journey as much as the destination.

The less powerful entry-level S version, meantime, can’t call on the services of that fabulous 2.0-litre engine and, instead, will possibly have a harder job convincing the masses of its worthiness. The lack of all-wheel drive probably won’t count for as much as the 'missing' 85kW (compared with the VZ) and some would-be buyers might find it hard to reconcile a driver’s SUV with the smaller engine in the S. Inside either variant, though, it’s prime family real estate with the clever rear seating and plenty of space and light inside. The value for money equation is pretty handy, too.

But for all that, you get the sense Cupra will need to shout about the Terramar if it’s to be heard over the general din of this fierce market segment. It would be a real shame if this car became simply a part of that background noise.

Note: CarsGuide attended this event as a guest of the manufacturer with accommodation and meals provided.

The S3 Sportback may be a small car, but its S design features, like the stylised blackout grille, matrix LED headlights, and 19-inch alloys with red brake calipers, give it a distinctly athletic and fun-loving vibe. It’s compact, but definitely not diminutive and carries serious road presence. It’s hot hatch meets fun-size.

Inside, the S3 looks fabulous. Integrated ambient lighting, a sharp dashboard treatment and a driver-focused cockpit all lend it a premium feel.

The front seats look properly sporty with their integrated headrests, and the quilted Nappa leather upholstery feels great, especially with the eye-catching red contrast stitching.

As for technology, it’s as high-end as you’d expect with a 10.1-inch touchscreen multimedia display and 12.3-inch digital instrument cluster taking centre stage.

The only drawback? No sunroof. Combined with the black headliner and compact cabin, it can feel a little gloomy at times. Still, it’s a cabin you’ll enjoy spending time in.

Depending on which angle you’re looking from, the Terramar has elements of the VW Tiguan and Porsche Macan in the way it sits on the road and in the metal shapes that make up the whole. Interestingly, though, it’s probably genetically closest to the new Audi Q3 alongside which it’s built in Hungary, although there is plenty of new Tiguan in the platform and engineering aspects.

The highlights remain the nth-degree detailing that every current-model Cupra displays, combined with a sensible, practical layout. The detailing extends to what Cupra calls parametric design which, for those with their nerd on, refers to the way the little shapes moulded into the interior fan out and subtly change shape while still continuing the overall pattern.

Think of the way a nautilus shell consists of circular loops but where each one is bigger than the previous. Has car design really come to this? Apparently.

On a more practical level, the sliding rear seat is a master stroke for a vehicle like this one. The two-storey luggage floor is a nice touch, too, although the boot needs to start empty for this to be set up initially. But given Cupra’s place in the scheme of things and its continual hints at cutting-edge technology, you may ask where’s the plug-in hybrid or EV version?

The short answer is production of the plug-in hybrid model starts this week with Australian deliveries due in November this year. And an EV must surely also be on the cards given VW’s announcement that Australia will receive the SUV version of its electric offering, the ID4, and not the hatchback ID3. All of which makes an electric Terramar even more logical. We’ll keep you posted.

Like most hatches, the front row enjoys the most space. While it’s cosy, it never feels cramped. The seats are firm yet comfortable, thanks to their adjustability and expandable under-thigh supports. Access is fairly easy with wide door apertures, though the low seating position might earn a few grunts, especially from taller folks.

Storage up front is well sorted, with a glove box, a small centre console, a dedicated phone cradle and a couple of cup and bottle holders. It’s about what you'd expect for a car this size, but it's enough to keep things tidy.

There are plenty of charging options, with two USB-C ports in each row and a wireless charging pad up front.

The multimedia system is intuitive and easy to use. The touchscreen is responsive, and wireless Apple CarPlay connected without fuss and stayed connected all week. Wireless Android Auto is available, too.

Built-in sat nav is clear, and I love the way directions pull through to the digital instrument panel. The Sonos sound system? Pretty darn good. My son and I had more than one mini-concert on the school run.

As for the rear row, it definitely reminds you this is a small car. At 168cm, I found it on the cramped side of cosy and my husband just laughed when I asked him to try it! The wheel arch also cuts into the door aperture, making access a little awkward. Best to think of it as occasional adult seating. But given the size, that’s no surprise.

Amenities in the back are decent with a couple of map pockets, cup and bottle holders, as well as a fold-down armrest, those USB ports and rear temperature control (but curiously, no fan control). The seats are comfortable enough, but space is limited. Realistically, it’s best suited for two passengers, not three.

Boot space is quite practical. The wide opening and manageable load lip height make it easy to slide items in and out. It offers 325L of space, less than its key rivals, but expands to 1145L with the rear seats folded flat. The handy 40/20/40 split also adds versatility. Under the boot floor, you’ll find a tyre repair kit.

There’s an awful lot going on inside the Terramar, stating with all that parametric detailing. But the copper-coloured accents are a genuine point of interest and most of the touchpoints are relatively plush as well as looking good.

Given the side profile of the car and its upswept waistline, you might think the interior would be a bit dark and gloomy. There’s certainly plenty of black on show, but the view out is actually great. Even the typical over-the-shoulder blind-spot isn’t really there.

We managed to sample the entry-level S version and the range-topping VZ and, to be honest, the major difference is the cloth-and-vinyl versus leather seating. The former is okay but never threatens to feel high-end, while the leather in the VZ is quite lovely.

There’s only one catch: If you don’t like burgundy leather, you’re out of luck, because that’s all that’s offered. Optional in the S and V variants, the idea of burgundy leather in, say, a blue car sounds awful, but in the flesh, the colour is quite subtle. Classy, even.

There’s a pair of USB charge ports in the front centre console, and another pair in the rear seat. That rear pew also gets its own climate controls (tri-zone) and central air-vents and there are reading lights as well. It also splits 40/20/40 and the centre armrest folds down to include a pair of cup-holders.

But while the rear seat offers plenty of foot and headroom, knee room is a bit tighter. It’s not terrible, but this car won’t necessarily fit families with older, taller teenage kids. Up front, there’s no shortage of space although the centre console feels quite bulky and definitely separates the front-seat occupants.

You can see and feel a bit of Audi ergonomics rubbing off in the Cupra’s touchscreens and customisable layouts and, as always, we’re big fans of having physical buttons on the centre stack for climate control and other important functions.

The luggage area isn’t huge, but is quite deep and the tailgate has a kick-sensor. Bins at each corner of the cargo area keep smaller items under control, but the inky blackness of the trim in this area means it looks like a black hole when you first open it.

The Cupra Terramar certainly looks like a premium product and that theme continues when you look at the specification.

The entry-level S version gets standard kit such as paddle shifters, 18-inch alloy wheels, LED lighting, a powered tailgate with a kick-sensor, keyless entry and start, powered and heated front seats with a memory function, a head-up display, a heated steering wheel, tri-zone climate control, dual info-screens, full wireless connectivity, ambient lighting and wireless phone charging.

Major accessories include a panoramic sunroof and a stereo upgrade and leather trim option bundled together. The drive-away price for the S is $58,490.

Move up to the $66,490 (drive-away) V variant and you add (aside from the driveline stuff we’ll get to in a moment) 19-inch copper-accented alloys and hill descent control.

The VZ at $73,490 (driveaway) goes one bigger in the wheels department with 20-inch alloys, adaptive suspension, the leather and stereo upgrade package as standard, selectable engine sound, matrix headlights, expanded driver-selectable drive modes and bigger brakes.

The S3 Sportback wears the quattro badge proudly, meaning it’s all-wheel drive and it pairs a tweaked seven-speed automatic transmission with a 2.0-litre turbocharged, four-cylinder petrol engine.

This update brings a bump in performance over the previous model, including the addition of a rear torque splitter. Power is now up to a gutsy 245kW and 420Nm of torque, launching the S3 from 0 - 100km/h in just 4.7 seconds. That’s proper hot hatch territory.

The Terramar range features a choice of two petrol engines and driveline layouts, three outputs and even a mild hybrid variant. In fact, the Terramar S which uses the hybrid driveline also happens to be the entry-level version of the car.

Generally, you’d expect the hybrid version of any line-up to be a more expensive option, but in this case, the hybrid system is one of those barely-there set-ups where a 48-volt electric motor – in this case disguised as the car’s alternator – also acts as the starter motor offering a little more 48-volt acceleration when required, and then recouping some otherwise lost during braking. Most drivers would need to be told the car is a hybrid at all.

Power for the S’s 1.5-litre, turbocharged engine tops out at 110kW, while torque peaks at 250Nm and the S is front-wheel-drive. Like the other variants, the S uses a seven-speed dual-clutch auto transmission.

The next step up the Terramar ladder is badged V and it gets a turbocharged 2.0-litre engine with no hybrid assistance, but an output of 150kW and 320Nm. This will be a familiar engine to anybody who has driven a mid-sized product from the Volkswagen family in the last decade or so.

In V form, the Terramar gains a part-time all-wheel-drive system. This is not driver-selectable but instead uses sensors to know when to shift some of the torque to the rear axle. In normal circumstances, the vehicle remains fundamentally a front-wheel drive one, but under full acceleration or on low-friction surfaces, the computer will send the torque rearward to maximise grip.

The range-topper is the Terramar VZ which is endowed with a retuned version of the same 2.0-litre engine in the V, but now punching out 195kW and 400Nm. The driveline is the same as the V’s but the VZ gets a premium brake package and also adds Cupra’s version of adaptive suspension to the mix. The system can adjust the dampers at up to 1000 times per second to provide the feel and feedback the driver chooses via the selectable driving modes.

And if you want even better brakes, there’s an optional braking package for the VZ which adds six-piston front calipers and larger front rotors. You might expect the mild-hybrid version of the Terramar to be a reasonably heavy vehicle, which it is at 1696kg. But it’s a lightweight compared with the rather hefty V at 1794kg and the decidedly portly VZ at 1803kg.

The S3 Sportback has an official combined fuel consumption figure of 7.9L/100km and a 55-litre fuel tank, giving it a theoretical driving range of up to 696km.

Its key rivals hover around similar numbers, so it's right on the mark for the segment. After a mix of long-distance drives and my usual urban errands, my real-world figure came in at 8.0L/100km - very close to the claim, which I’m pretty happy with.

Cupra claims a different combined cycle (urban/extra-urban) fuel consumption number for each of the three engines on offer, starting with the mild-hybrid version’s 5.7 litres per 100km. The mid-spec two-litre claims 7.2 litres per 100km and the high output 2.0-litre carries an 8.2 litres per 100km claim.

The standard 55 litre fuel tank in the S, then, should be good for a theoretical range of around 950km, while the V and VZ with their slightly bigger fuel tanks should be able to cover about 830km and 730km, respectively, between trips to the pump.

It pays to keep in mind, however, that Cupra recommends all three engines are run on the pricier 95-octane fuel, rather than standard 91-octane. That will add a few dollars to every fill, but the efficiency of the engines can’t be faulted.

Interestingly, in a mix of highway and city driving, our test VZ managed about 8.5L/100km which is seriously close to the official combined number. Rarely does any car get that close to its government figure.

The S3 Sportback sounds as mean as it looks, and it delivers on that promise with effortless grunt. Acceleration is immediate, with plenty of power on tap when you need it. It’s just fun all around.

The lowered sports suspension and wide tyres do bring some extra noise into the cabin, even at lower speeds. You might find yourself repeating things to rear passengers now and then, but it never feels overwhelming.

Steering and suspension are on the firmer side, so yes, you’ll feel the bumps but the payoff is sharp, responsive handling. Quick lane changes and winding coastal roads are where this car shines.

Visibility is about what you’d expect from a low-slung hot hatch. The pillars don’t obstruct the view, but sitting beside a towering SUV at the lights can make you feel a bit... compact.

Cornering is a strong suit, thanks to the car’s wide stance and AWD system. It feels confidently planted in most conditions. That said, I noticed the occasional wobble through the rear frame on rough sections in heavy rain.

Its compact size makes parking a breeze, especially with the help of multiple sensors. The reversing camera is crisp, but at this price point, the lack of a 360-degree camera view feels like a missed opportunity.

Let’s start with the S model and its mild hybrid driveline. Frankly, if you can pick this is a hybrid of any sort, you’re doing very well. Sure, any hybrid tech should aim to be as transparent as possible, but this time around, it’s pretty much totally invisible.

So, in the absence of too much electric thrust, the petrol engine is left to do the heavy lifting. And, frankly, with just 110kW to propel it, the 1.5-litre engine has its work cut out. It’s perfectly fine at cruising velocities, but start asking the tough question in hilly country or when powering out of slow corners, and it can all start to feel and sound a bit busy. And yet there’s not the thrust to back up the perception of mechanical activity.

The seven-speed dual-clutch does a good job, but it too is kept mighty occupied by the task of improving velocity. Flapping at the paddle shifters might keep you happy for a while, but the transmission has its own smarts sufficient to make the most of those 110kW.

Which means, of course, the VZ variant is the one for keener drivers. But even then, the excellence of the 2.0-litre turbo when fitted to the Golf GTi is dulled a little when hauling around the Terramar's 1.8 tonnes. It still feels pretty perky, however, and this is certainly not a comparison between a very fast Golf and an SUV, so it’s fair to say the Terramar VZ gets along pretty well.

Again, the dual-clutch auto is your friend, although we reckon its shifts and shift-patterns might have been backed off a little to suit the heavier Cupra.

Ride quality is slightly superior in the S version (18-inch tyres play 20-inch on the VZ) but either specification is tied down pretty well with minimal body roll for this type of vehicle. That plays slightly against outright comfort, but the cabin remains quiet with very little suspension or tyre noise making it inside.

What’s a bit confusing is the way the adaptive dampers have been set-up in the VZ. Rather than using the 'Comfort' drive mode to soften the dampers for small, pattery bumps, Cupra seems to have concentrated on more dramatic, larger wheel movements for the 'Sport' setting. So, the mode-to-mode ride is very, very similar in normal work, but firms up a reasonable amount over longer, swooping bumps that start to use more and more of the available travel.

By far our biggest complaint is that old cracked record about the driver-assistance systems being too insistent. The Terramar is by no means the worst we’ve sampled, but the lane-keeping assistance is over-zealous to the point where you’ll turn it off (defeating the purpose of its inclusion). And the driver distraction alert is just flat out annoying for its habit of confusing any facial expression other than Blue Steel as a clue that you’re nodding off.

Speaking of such technologies, you’d expect all the latest driver assistance aids from a brand like Cupra, and you won’t be disappointed. There’s adaptive cruise control with follow-and-stop abilities, lane-keeping warning and assistance, collision warning, autonomous emergency braking, pedestrian and cyclist recognition, swerve-assist, traffic sign recognition, blind-spot monitoring, rear cross-traffic alert, front and rear parking sensors, a 360-degree camera view, driver distraction warning and tyre pressure monitoring.

As well as seven airbags including a centre-front bag, there are also three top-tether restraint mounts in the rear seat and ISOFIX mounts on the outboard rear positions. ANCAP has given the Terramar a maximum five-star safety rating with a 2025 date stamp.

Audi backs the S3 Sportback with a five-year/unlimited kilometre warranty, which is on par with its European rivals. A five-year pre-paid servicing plan is available for $2890 which is cheaper than pay-as-you-go and reasonable for the class.

For those looking to go the extra mile, the 'Audi Advantage' package lets you extend the warranty and capped-price servicing by an additional two years, which represents solid value overall.

Servicing intervals are every 12 months or 15,000km, whichever comes first.

Cupra’s standard five-year/unlimited kilometre warranty applies to the entire Terramar range. While that’s a decent amount of cover, it trails some of the cheaper brands out there with seven, eight or even 10-year warranties.

The Terramar also comes with five years' of roadside assistance including extras like emergency accommodation, towing and even car rental should the unthinkable happen.

Cupra also offers capped-price servicing packages for the Terramar, with an option of three- and five-year plans. The first three years of servicing can be pre-paid at the time of purchase for $1490, while five years' of servicing costs $2590. That’s based on the Terramar’s 15,000km or 12 months service intervals.