What's the difference?
Cupra is not trying to fit in.
In a car market that is getting more and more crowded the Volkswagen Group-owned Spanish performance brand is looking to stand out. Which is why its refreshed Leon hatchback range has added the most unlikely of new models - a small wagon.
The conventional hatchback is struggling to survive against the onslaught of SUVs, and almost every brand has abandoned the wagon in all its sizes, but not Cupra. It has added the Leon Sportstourer to its facelifted Leon hatchback range, giving buyers looking for something different a new alternative.
This new compact wagon is powered by a plug-in hybrid powertrain and joins the Leon hatch in a three-pronged line-up initially, with the Leon S mild-hybrid and VZx hot hatch. A red hot VZx version of the Sportstourer and plug-in hybrid hatch are locked in to join the local Cupra range in 2026, but for now we’ll focus on this trio.
There aren’t many cars like the new Cupra Terramar VZe as it’s a mid-size plug-in hybrid flagship that sits firmly at the premium end of the mainstream market. That’s either a huge advantage… or it’s not.
Because when you don’t have a clear set of rivals, you tend to stand out.
There are alternatives, of course. Things like the BYD Sealion 6 Premium, Chery Tiggo 7 Super Hybrid, GWM Haval H6 GT, Mitsubishi Outlander PHEV and Volkswagen Tiguan eHybrid - but they each approach this space a little differently, whether it’s in pricing, positioning or execution.
Which leaves the Terramar VZe carving out a niche for itself. So the question is, does this plug-in hybrid make a compelling case?
There's a lot to like about the updated Leon line-up, but probably not by lots of people. It won't be a best-seller, Cupra doesn't need or even want it to be. What it will do is offer something different, and in the case of the Sportstourer something very rare.
The S and VZx will face stiffer competition in the hatchback markets, primarily from Volkswagen, Audi and even Skoda, and it's hard to pick an area where they really stand out from the competition, apart from the unique styling. Not that they aren't pleasant cars to drive, it's just a crowded market.
Which is why the Sportstourer, especially with its plug-in hybrid powertrain, has a chance to be something that really sets Cupra apart from its rivals. Dynamic, efficient and different, it won’t fit in - and that’s exactly what the brand is hoping for.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
The Cupra Terramar VZe looks fantastic on the road and confidently handles most things you throw at it. The plug-in hybrid set-up offers a nice blend of performance and efficiency. But… when you start digging into the price and ownership promise and what you do (and don’t) get for your money, it doesn’t always feel like the most compelling package. Sexy and sporty? Definitely. Value-for-money? Mmm.
Design is a key tenet of Cupra’s ethos, because while it may share Volkswagen mechanical DNA, the Spanish brand wants to really stand apart when you look at or sit inside the Leon.
While it may be the same size as a VW Golf, it certainly doesn’t look or feel like one. Yes, there’s the typical Volkswagen build quality to the fit and finishes, but overall it has a unique Spanish style to it.
On the exterior, Cupra has given the Leon a major visual overhaul with the front end featuring a new-look grille, bumper and headlights. At the rear the tail-lights have been redesigned and now incorporate the logo into a single horizontal light bar that runs the width of the rear.
Inside there’s some new materials, but the most notable change is the introduction of a 12.9-inch multimedia screen. Ambient lightning available on all three models helps to highlight the cabin design.
Design is one of the areas where the Terramar makes a strong first impression. It’s sharply styled, and very much aimed at buyers who aren’t quite ready to let go of their sportier tastes, even if their car choice suggests otherwise. The stance is wide, the proportions are tidy and those 20-inch copper alloy wheels do a lot of the heavy lifting visually.
Up front, the grille features a triangular LED lighting signature that, for anyone who grew up with it, looks a little like the Triforce (Zelda). Around the back, there’s a full-width light bar with a 3D illuminated logo which enhances the overall 'cool-edge' style the Terramar has.
Inside, that same theme carries through. The cabin is clean but still visually interesting, with plenty of soft-touch materials and leather throughout. Copper-coloured accents are used generously but not to the point where it feels overdone and give it a firm identity.
The optional panoramic roof lifts the space and the 12.9-inch central display sits front and centre, giving the cabin a properly high-end feel.
While we’re talking about two different bodystyles here - hatch and wagon - the front seats are the same. So you are treated to Cupra’s stylish but thoughtful layout, which looks nice but also has good practicality.
The seats themselves are comfortable, even after extended periods behind the wheel, while there’s cupholders, sizeable door pockets, a lidded centre console box and a wireless smartphone charging pad.
The previously mentioned 12.9-inch multimedia screen dominates the centre console, sitting proudly at the top of the fascia. Unfortunately, Cupra (like Volkswagen) has fallen to the modern trend of ‘touch controls’ rather than physical buttons.
Not to sound like an old man yelling at clouds, but these touch-sensitive sliders are simply not as user-friendly, especially in a moving vehicle, as a traditional physical button or dial. While the multimedia system is easy to use, especially with Android Auto or Apple CarPlay fully integrated, adding dials for the stereo (on/off and volume) and the climate control would have been great.
Otherwise, the 12-speaker Sennheiser sound system with subwoofer and 390W amplifier sounds great, offering a premium in-car entertainment experience to match the Cupra’s price and positioning.
As for space in the back, which is obviously where the hatch and Sportstourer vary. There isn’t a lot to split them in terms of passenger space. These are both small cars, so neither offer the kind of room you’d get from an equivalent-sized SUV. The real difference is the cargo capacity, the hatch pair offer 344L (or 888L with the rear seats down) whereas the Sportstourer has a more generous 470L/1045L.
In terms of practicality, the Terramar feels a little mixed depending on where you’re sitting.
Space and comfort first. The front row is where it feels most at ease. The sport seats are supportive, with enough adjustment to stay comfortable on a longer drive and the added heating and driver’s memory function round things out nicely. That said, elbow room can feel a little tight if you’re sitting alongside someone broad-shouldered.
The rear row is more of a compromise. Legroom behind my driving position is on the tighter side, and for context, I’m 168cm, though headroom holds up reasonably well, even with the panoramic roof. The shape of the seat base and storage cut-outs also make the bench feel narrower, so it’s better suited to two adults than three.
Storage is about what you’d expect, without really exceeding it. Up front, the glove box is the largest cubby, supported by a centre console, a phone cradle and a pair of cupholders, although they’re different sizes, so only one emotional support bottle will fit.
In the rear, it’s a similar story. You get a couple of bottle holders and cupholders, but you miss out on map pockets.
On the tech and amenities front, most functions are housed within the 12.9-inch media display. The graphics are clear and the touchscreen is responsive, though the touch-based climate controls underneath it can be fiddly at times. That said, the overall layout becomes fairly intuitive after a short adjustment period, even if physical buttons would still be welcome.
Connectivity is well covered, with wireless Apple CarPlay and Android Auto, the former holding a steady connection during my time with it, along with built-in navigation. Charging options are solid, too, with four USB-C ports across the cabin, a 12-volt outlet and a wireless charging pad.
The rear gets its own climate control, though without fan speed control, and again, at this price point, it feels like there’s room for a little more in the way of convenience features - particularly things like heated outboard seats.
At the back, boot space comes in at 400L, which is the smallest in the Terramar range due to the battery placement. It’s broadly in line with key alternatives like the BYD Sealion 6 Premium, which offers slightly more capacity, but the difference isn’t dramatic in day-to-day use.
In practice, it’s been enough for a week of errands with a small family, and the flat loading floor and powered tailgate make it easy to live with. There’s no spare tyre, though, just a puncture repair kit, which won't suit everyone.
Knowing that hatchbacks and wagons aren’t big sellers and Cupra’s desire to stay boutique rather than mainstream, the line-up is relatively simple.
The Leon S kicks off the range at $46,990 (all prices listed exclude on-road costs) and comes with 18-inch black and silver alloy wheels, LED headlights, keyless entry and ignition, heated sports bucket seats, tri-zone climate control and a six-speaker sound system with Apple CarPlay and Android Auto.
The Leon VXz starts at $64,990 and includes 19-inch black and copper alloy wheels, multi-link rear suspension, adaptive dampers, front locking differential, upgraded brakes, quad exhaust and Cupra drive modes. There’s also leather-appointed seats and a 12-speaker Sennheiser sound system.
The VZe Sportstourer completes the line-up priced at $69,990 featuring unique 19-inch black and copper alloys, LED headlights and tail-lights, a power tailgate with handsfree opening and black roof rails. Inside it gets leather-appointed sports seats, heated front seats and steering wheel, tri-zone climate control, native navigation, Apple CarPlay and Android Auto plus the 12-speaker Sennheiser stereo.
The new Cupra Terramar is available in four grades, and we’re in the flagship VZe, the only one to feature a plug-in hybrid powertrain, priced from $77,990, before on-road costs.
Given where it sits, there’s still not a lot that lines up neatly against it. The closest is probably the Volkswagen Tiguan eHybrid R-Line, expected to land at around $74,550, before on-roads, along with the Mitsubishi Outlander PHEV EV GSR from $73,990 MSRP.
Beyond that, you start to drift into more value-focused territory with options like the BYD Sealion 6 Premium ($52,990, MSRP), Chery Tiggo 7 Super Hybrid Ultimate ($43,990, drive-away), and GWM Haval H6 GT Ultra ($50,990, drive-away). So, significantly cheaper, while still offering a fairly generous level of equipment.
As for the Terramar VZe, it doesn’t arrive empty-handed. You get leather upholstery, electric front seats with heating, a heated steering wheel, wireless Apple CarPlay and Android Auto, 20-inch alloy wheels, a full LED light suite, a 12.9-inch media display, 10.25-inch digital instrument cluster and a 12-speaker Sennheiser sound system. There’s also built-in navigation, four USB-C ports, a 12-volt socket and a wireless charging pad.
It’s a solid list but at this price point a couple of omissions stand out. Front seat ventilation isn’t offered, there’s no heating for the rear outboard seats and the panoramic sunroof, which feels like it would round things out nicely, is still a $2000 option.
None of those are deal-breakers on their own, but in this part of the market, they’re the kind of details that you'll notice.
The three Leon models all feature a different powertrain, as each is targeting a distinctly different buyer.
The Leon S is powered by a 110kW/250Nm 1.5-litre turbocharged petrol engine with mild-hybrid assistance.
The Leon VZx gets a more potent 2.0-litre four-cylinder turbo-petrol engine that makes 221kW/400Nm, to put it right at the heart of the hot hatch market.
The Leon VZe Sportstourer manages to combine efficiency with performance, with a 1.5-litre turbo-petrol engine paired to an electric motor to make an efficient 200kW and 400Nm.
The one thing all three have in common is a seven-speed dual-clutch transmission and front-wheel drive.
Under the bonnet, the Terramar VZe pairs a 1.5-litre, four-cylinder, turbo-petrol engine with a single electric motor, for a combined output of 200kW and 400Nm.
On paper, those figures sit a little behind some of the more value-focused plug-in hybrid options, like the BYD Sealion 6 Premium and GWM Haval H6 GT, and it’s also front-wheel drive, where some rivals offer all-wheel drive.
In practice, though, it doesn’t feel underdone. The six-speed automatic shifts cleanly and the transition between electric and petrol power is smooth. As a whole, the set-up feels well calibrated.
Naturally, the three different powertrains provide three very different fuel economy numbers.
The mild-hybrid system in the Leon S allows it to use just 5.4L/100km, which provides a theoretical range of up to 833km thanks to its 45-litre fuel tank.
The VZx is the thirstiest member of the range, not surprisingly, using 7.6L/100km. With its 50-litres tank it has a theoretical driving range of approximately 650km.
Finally, the Sportstourer VZe manages a claimed 0.4L/100km on paper, thanks to its 20kWh battery providing up to 121km of electric-only driving range. Obviously achieving that claimed figure in the real world is incredibly difficult (as it is with any PHEV) but we still managed to use just 2.4L/100km on our mostly extra-urban test drive, which is still a good return.
The VZe uses a 20kWh lithium-ion battery, which is on the smaller side compared to some alternatives but it still delivers a useful amount of electric driving range at 109km (WLTP).
With its Type 2 CCS charging port, you can access DC fast charging at up to 50kW, with a claimed 0-80 per cent top-up taking around 26 minutes. On AC, it’s more of an overnight affair, so it suits a home charging routine.
Officially, energy use is rated at 1.8L/100km on the combined (urban/extra-urban) cycle, and after a mix of highway and urban driving, I saw a trip computer figure of 1.5L/100km.
That’s an impressive result but it comes with a bit of context. I'm charging it daily to make the most of the claimed electric-only range, and that has a big influence on the numbers you’ll see in the real world.
Obviously there are three very different variants in the Leon range, with three different powertrains and two different body styles, and yet there is a familiar feeling between all three when you’re behind the wheel.
This is arguably the ‘most Volkswagen-y’ element of the Cupras, with the solid, stable Volkswagen underpinnings coming through. This is, of course, not a criticism, but rather highlights the positive connections between Cupra and its parent company, which has allowed it to make an immediate impression on the Australian market.
However, it also means the Leons feel so familiar that they don’t leave you with a unique impression and driving character.
For example, the VZx is almost too good, too quick and too clinical. It lacks the excitement and engagement rival hot hatches offer, notably the Hyundai i30 N and Honda Civic Type R, but instead compensates by just being really capable.
Obviously, that may not be seen as a negative by everyone and for those who want that sort of engaging, dare I say ‘fun and edgy’, driving experience the Leon VZx may not be precisely what they are looking for. Still, the engine is potent and even the lack of all-wheel drive doesn’t dampen its performance abilities too significantly compared to the likes of a VW Golf R or Audi S3.
The Leon S offers a different proposition, a warmed up hatch, rather than something hot. On that front it delivers, providing a well-mannered drive but without the punch of the VZx.
The Sportstourer is arguably the pick of the range, with its combination of sharp driving dynamics and very efficient powertrain. At no point do you feel like Cupra compromised its sporty intent to make the Sportstourer save fuel. Instead, the PHEV powertrain offers plenty of performance when you need it but is otherwise quiet and efficient the rest of the time, helping it to sip fuel at a much lower rate than its Leon hatchback alternatives.
On the road, the Terramar VZe makes an immediate impression. Power delivery is prompt, and even with the battery depleted, it feels responsive off the mark. There’s enough in reserve that you don’t feel like you’re chasing performance, even when you lean on it.
The handling follows a sporty brief. Suspension tuning does a good job of smoothing out the bigger bumps, but it still lets a fair amount of road feedback in, particularly when you’re pushing through a corner. The steering is on the firmer side and the brakes are quite sensitive, which takes a moment to adjust to, but together they give the car a more engaged feel. That said, it won’t be to everyone’s taste.
Visibility is one area that takes a bit more effort. The lower window line and thicker pillars give it a more enclosed feel than a typical mid-size SUV, so you find yourself being a bit more deliberate with blind spot checks, particularly around the A-pillar.
Ride comfort holds up despite the firmer set-up, and the sports seats do a good job of keeping you settled. Around town and under electric power, the cabin is impressively quiet, though you notice more road and engine noise creeping in at highway speeds or under heavier acceleration.
Around tighter spaces, it feels smaller than it is. The 11.5-metre turning circle and quick steering make it easy enough to manoeuvre, and the 360-degree camera is a useful addition, although the image quality doesn’t quite match the expectations set by the price point.
The Cupra trio come loaded with plenty of safety features including 10 airbags for excellent passive protection plus autonomous emergency braking, front and rear cross-traffic alert, blind spot warning and driver fatigue monitoring.
For convenience and safety there’s also adaptive cruise control, front and rear parking sensors and even self-parking.
As the Leon has had no major structural changes, the original 2021 five-star ANCAP rating still applies. However, it should be noted that ANCAP updated its testing protocols in 2023, so that five-star rating is different to a five-star rating applied since then.
On the safety front, the Terramar holds a maximum five-star ANCAP rating from 2025 testing and comes equipped with seven airbags.
The standard active safety suite is comprehensive, covering the essentials like lane keeping aid, lane departure warning, lane centring, forward collision warning, blind-spot monitoring, rear cross-traffic alert, driver attention monitoring and a side-exit warning system.
In use, the adaptive cruise control is well calibrated, though the steering assist is a little overzealous. It requires quite a firm hold on the steering wheel to override warnings or prevent emergency intervention... like braking, as it did me going 80km/h in a tunnel.
It’s also worth noting a couple of omissions. There’s no emergency call functionality, and hill descent control (HDC) isn’t included.
The autonomous emergency braking has junction, car, cyclist, motorcyclist and pedestrian detection and is operational form 5.0-85km/h (up to 250km/h for car detection).
All three Leons are covered by Cupra Australia’s standard warranty, which covers the first five-years/unlimited kilometres. Which is good, especially for a new and more premium brand, even if it’s obviously short of the best-in-market.
Servicing is required every 12 months/15,000km, whichever comes first, and Cupra is offering a servicing pack special until the end of 2025, of $1990 for five years. That works out to an average of $398 per year.
Cupra is expanding its dealer network in Australia too. The Leon drive event we attended began at the newly-opened Cupra Macarther in Sydney’s growing west. There’s also a new dealership at Melbourne’s Essendon Fields.
Of course, one of the key advantages that Cupra has over many other new brands to Australia is its Volkswagen/Audi connections, which allows its models to be serviced at those dealerships as well. That provides a much larger footprint for customers to find somewhere convenient to service their car, which cannot be underestimated.
In terms of ownership, the Terramar is covered by Cupra’s five-year, unlimited-kilometre warranty. That’s fairly standard for the segment, though it sits behind some rivals now offering longer seven-year plus programs. Inclusion of five years' roadside assistance is a welcome addition.
Servicing can be pre-purchased with either a three- or five-year plan, with the latter priced at $2590, which is in line with what you’d expect for this class. Intervals are set at every 12 months or 15,000 kilometres.
One thing to keep in mind is the size of the Cupra service network. It’s still relatively limited, with around 14 centres nationwide, so depending on where you’re based, that may take a bit more planning.