Another Opel or Infiniti? Cupra boss says brand will succeed where others failed thank to Volkswagen Group connections

Cupra may be the latest car brand in Australia, but as Opel and Infiniti have shown in the past, being the new kid on the block doesn’t always mean you have the staying power to stick around for the decades to come.

And this is something Cupra is acutely aware of, as the brand’s global boss Wayne Griffiths told journalists earlier this week at the opening of the flagship Cupra City Garage outlet in Sydney.

When asked by CarsGuide what makes the sporty Spanish brand different from Opel and Infiniti – two brands that have now withdrawn from local operations – Mr Griffiths said Cupra’s unique identity will stand it apart from the others.

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“I think because Cupra is a contemporary brand for the next generation of car lovers, I think we have been able to prove – in a very short period of time in Europe – that we can hit a nerve with this new generation of customers out there for different reasons,” he said.

“Cupra is a brand that stands out amongst the crowd because it stands for something, and what it stands for is quite simply doing great-looking cars inspired by the design of Barcelona – so cars that not everybody likes, but some people love – and that are great fun to drive at an affordable price between the mass segment and the premium segment.

“We’re making an impact because I think we are an authentic brand, so we walk the talk, we’re not only just about marketing and creating an image.

“There’s a group of people in our company that have been able to create this special brand, in its entirety not in terms of product and design, but the way we communicate, and that’s hit a nerve with customers.

“And I think also a nerve here in Australia.”

First deliveries of Cupra’s first three models – the Formentor, Leon and Ateca – will begin in early August, while the all-electric Born hatchback will arrive early next year.

Three new products – the Terramar, Tavascan and UrbanRebel – will bolster the local Cupra line-up by 2025 as the brand sets a sales target of 7000 units before the second half of the decade.

However, Opel and Infiniti had similar growth ambitions when they entered the ultra-competitive local car market in the past.

Opel was eyeing 15,000 sales in its first four years, but lasted just 12 months Down Under, while Infiniti lasted seven years before calling it quits in 2019, peaking with 807 annual sales.

While Opel was part of the General Motors umbrella at the time and helped by sister-brand Holden, and Infiniti falls under Nissan’s remit, Cupra is part of the Volkswagen Group that also counts Skoda, Audi, Porsche, Bentley and – of course – Volkswagen in its stable.

Volkswagen Group’s substantial Australian footprint has helped Cupra kick-start its local operations, according to Mr Griffiths, and even allowed the brand to sell its cars through an agency model directly to the customers.

“With limited resources, which any brand has when you’re setting off as a new young brand, you have to try and reach the market in a different way, so you have to be very effective in what you do,” he said.

“I think our opportunity however, starting from new and from scratch, is that we can do things right from the beginning.

“In particular terms, our distribution strategy, so going to a direct sales model, an agency model, not investing in big palaces but in cool Cupra City Garages like this one.

“I think that’s a big advantage

“The other big advantage we have, is being part of the Volkswagen Group, we have a footprint of investors here in Australia who upgrade the experience and have coverage of the whole country.

“In comparison to a lot of the other start-up new brands, we can hit the ground running because we have a service network that can fix our cars, we have investors that are part of the family – and Cupra is part of the Volkswagen Group family.

“You have a mixture of being new, but also the advantage out of an existing network – it makes us stronger.”

Having become its own standalone brand four years ago when it was spun out of Seat, Mr Griffiths said Australia is a natural fit for Cupra’s sporty image, given the local love for performance cars.

But Mr Griffiths also said Australia’s unique identity also matches well with Cupra’s.

“Australia is a very young country, young-minded, open-minded, open for new stuff … to stand out because they want to stand for something unique and special,” he said.

“It’ll work,” Mr Griffiths said with a smile.