'To bet on EVs only is too risky!' Cupra plans to sell sporty combustion cars for as long as there are buyers

Speaking to Australian media at the launch of the Terramar mid-size SUV, Cupra Executive Vice-President for Research and Development Dr. Werner Tietz explained the brand’s strategy of continuing to offer combustion cars alongside hybrids and EVs is paying off, and that it will continue to offer combustion cars as long as it can.

When asked if the brand needs to adjust its powertrain strategy in light of dropping EV sales in Europe, Tietz said there is no need for Cupra to react.

“I think we have a very robust strategy. Terramar is a combustion car with a huge proportion of hybrid, we’re planning more than 50 per cent hybrid [sales]. We planned this car four years ago, so we saw it was necessary to bridge the time [until 2035].

"To bet only on electric cars was too risky and we were right with this strategy, so we don’t need to change it, the strategy is working out well.

“If you look at our output, we have everything. The Born, the Tavascan: fully electric cars. Leon, Formentor and Terramar: combustion cars. So it’s the full portfolio — we can offer everything.”

“Is electrification slowing down? Yes, do we have to react to that? Actually, no.”

Cupra is working with an electrification timeline more in line with European regulations (zero emissions by 2035) rather than trying to get ahead of schedule as brands like Volvo (by 2030), Mini (by 2030), Jaguar (by 2025), GWM (By 2030), and Alfa Romeo (by 2027).

Several brands have already walked back aggressive timelines, most notably Mercedes-Benz (originally 2030, now launching new combustion cars from 2027), and Ford (originally 2030, now says this plan is 'not feasible').

Tietz added that Cupra’s parent company, Seat S.A., was able to continue to balance its emissions and sales requirements thanks to the popular-in-Europe combustion Arona small SUV, although noted that a Cupra version of it would not be developed.

However, Cupra will continue to offer combustion products so long as consumers want them until the EU’s 2035 cut-off.

“It’s very simple” Tietz said, when asked if there’s an end date for Cupra’s combustion range, “If the regulations stay as they are in Europe in 2035 we are not allowed to make combustion cars anymore. Will it stay like that? I don’t know, until then if there’s a demand in the market for people who want to buy a combustion car we have to offer something because in the end we will not survive if we sell something nobody wants to buy. So we have to have a mix.”

Ultimately, emissions penalties will start to bite whether consumers want them or not, and the European market offers a preview of what might happen in Australia as our New Vehicle Efficiency Standard starts to clamp down. The Spanish performance brand says it will need to convince consumers that electric cars can be fun before that date comes.

“Our mission is to convince people that electric cars are not boring — that electric cars are sporty and even more exciting in the end than combustion cars,” said Tietz, “If you look at the Born VZ, if you ask me, this car is fun. It’s more than just transport, and I think we need more of these kinds of cars.”

Despite the brand hedging its bets by maintaining combustion versions of the Leon, Formentor, and Terramar, it will still need to sell an alarmingly high proportion of EVs in Europe in 2025 against a backdrop of falling EV enthusiasm.

“The mix of electric cars has to go up.” Tietz said, “Next year we have to sell 35 per cent of electric cars if we want to be CO2 compliant in Europe — so the number of electric cars will go up. In Europe, we have a good chance because the electric infrastructure is quite good.” Tietz said, accepting that even in the EU there are some areas where, like Australia, charging infrastructure is less than ideal to support the number of EVs needed.

In the future, rather than an Arona-sized combustion car, Cupra’s volume electric sales are planned to be boosted by a more affordable small model, the Raval, which will be just one in an array of new EVs.

“From 2026 onwards we need Raval — because the CO2 limits are going tighter and tighter, so we need more volume. We need to go down in size of the car to spread electrification to more customers.

We will offer the Raval with a range which is competitive, around 500km — it’s an urban electric car, but the size of the interior is the same as Leon. It’s a concept which is working really well.”

Into the future, the brand has designs on the US market, with Tietz adding, “Our priority is to invest in the US market, and we’re already working on products for the entry into the US market — a larger SUV and something else.” Something else he wouldn’t yet elaborate on.

The likely EV9-rivalling large SUV will be the next electric model for the brand following the Raval small car.

In Australia, Cupra is on the warpath updating its entire range, launching facelifted versions of the Leon, Formentor and adding a new VZ variant of its Born hatchback by early 2025, with the dual mid-size SUV assault of the Tavascan EV and Terramar to follow.