Cupra Terramar vs Lexus ES300H

What's the difference?

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.

There’s no denying the Sport Luxury is imposing, spacious, plush, chock-full of kit, efficient, speedy and pleasingly relaxing up to a point.

But its interior is also dated and true ride comfort can be elusive beyond smooth roads for this top-of-the-line version to make the grade as a proper luxury sedan.  

The ES 300h feels more like an aspirational Toyota than a Lexus for the (wealthier) masses, especially after recent triumphs like the latest NX and RX SUVs. The Camry DNA is difficult to disguise, as the amused strangers who sat in our test car uninvited thinking it was their Camry highlights.

Sure, the hybrid is no Chevy V8, but in many other ways, the Sport Luxury seems like the modern successor to the Holden Caprice experience.

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.

Historically, cars like the ES appeal to an older and more conservative demographic, who value imposing, conspicuously-expensive looking sedans offering the luxury of space. This is the Cadillac model and our Lexus embodies it.

Which is why hire company operators snap such vehicles up. Great for airport-hotel-airport runs.

But it’s weird, given how much of Lexus’ design language is in the ES’ elaborate nose and tail treatments, how generically Toyota this looks. Certainly, our test car’s 'Sonic Quartz' white paint job does not help.

Just to reinforce this perception, two strangers were fully sat inside our unlocked test Lexus before they realised it wasn't their actual car parked nearby – a white Camry of course.

How they laughed. But if I had paid over $80K for my ES, I certainly wouldn't be amused.

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 ES 300h may look like a gussied-up Camry on the outside, but there’s very little evidence of the Toyota inside the stretched cabin, with Lexus-specific seating, trim and dashboard.

However, if you’re familiar with the latest LS, NX or RX models, much of what you see is now dated, previous-gen tech, and that’s an issue in some key ways.

Let’s start with the SL positives, though.

Quiet and free from rattles, the interior is defined by its first-class fit and finish, and then closely followed by the vast length inside, with ample room up front to stretch out and relax in. The ES’ substantial width adds to the sense of spaciousness.

Ventilation is excellent, exemplary even, with strong and effective climate control all around the car. Great for very hot days.

The front seats provide practically infinite adjustment in most directions, and include a handy thigh-support extender that – like everything else inside – moves electrically.

Comfy and supportive, they do a fine job. Effective heated and vented cushions and backrests are further bonuses.

But let's call out the hard front headrests. They feel cheap. And the ES’ age now shows in other, eyebrow-raising ways for an $80K-plus machine.

The dash is a messy mix of now-dated Lexus styling cues – from the ugly asymmetrical centre console to the single circular instrumentation dial for speed and tachometer.

The original IS 200's analogue watch face theme was cool in '99. Today's iteration looks basic.

Storage seems poorly judged given the vastness of this sedan, provided for by cavities in the sub-sized centre armrest, glove box and door bins. Note that the latter cannot hold bottles.

Then, there’s the ill-conceived touchpad that requires brain-surgery precision when fingered to navigate the main display screen when driving (though now it's also a touchscreen, and not before time); after years of various iterations of this, it remains alien and confounding in the extreme to operate. Rest assured, it's been banished in newer-gen Lexuses.

Also annoying is the infernal ‘please obey all traffic regulations’ voice warning, just like you find in a Yaris; the limited and easily-flummoxed voice-control tech and the dated and low-fi graphics for the needlessly complicated sat-nav system.

We relied on CarPlay because the in-built item endlessly let us down. Chuck them all out.

However, there are upsides to a dated interior, because even though this is a confusing and at-times intimidating button-fest, it’s still preferable to the today's everything-behind-a-touchscreen mania.

Give us physical switches and buttons every time, like the ES. Yes, the Lexus also has them replicated within the central display, but the point is, the driver has a choice.

You shouldn't be shocked to learn that the Sports Luxury impresses most as a sumptuously comfortable back-seat experience.

Rear access is easy, the passengers can adjust the front seat, climate control and audio systems via handily-sited switches (meaning they're replicated thrice in some instances).

Limo luxury amenities include individually-reclinable and heated outboard seats that are downright sumptuous, blinds for all glass (electric for the rear window), a lined centre bin, face-level air vents, two USB ports, a 12V outlet, generously-sized elbow rests on the doors, overhead lighting and door pockets are also included.

This is tailored as an airport/hotel shuttle and very comfortable doing so.

No folding backrest, though, meaning the boot – though not small at 454 litres – lacks the load-through facilities now common in most other sedans, including the Camry.

Under the flat floor is a space-saver spare with the words ‘SPACE MISER MKIII’ emblazoned across it. Classy.

In summary, the ES’ interior is one of two parts – comfortable but dated up front, invitingly lush out back. Perfect for its intended station in life then.

The second-oldest Lexus nameplate after the LS flagship, Australia skipped the fifth-gen version from 2006 to 2012 altogether because it was ousted by the smaller, sportier and more-popular IS series.

However, the latter’s 2021 demise saw the situation flipped, with the ES retaking the mantle as the affordable Lexus sedan torchbearer, while also belatedly replacing the larger GS.

This all coincided more-or-less with a facelift later that year, which brought revised front-end styling, uprated safety, updated multimedia, extra kit and a beefier body, among other changes.

Plus, a (slightly) cheaper non-hybrid ES version returned, dubbed 250. Starting from $61,620 (all prices are before on-road costs), it uses the Camry’s 2.5-litre four-cylinder atmo petrol engine.

However, the 300h hybrid from about $2K more is the better seller, with its electric motor and battery pack assistance. Our test SL flagship kicks off from $78,180, and heaves with standard equipment.

On the safety front, the usual array of driver-assist tech is present, starting with Lexus’ pre-collision system that includes Autonomous Emergency Braking (AEB), blind-spot monitor, adaptive cruise control and lane-keep warning/assist. See the safety section for more.

The biggest change inside is the now-touchscreen-enabled 12.3-inch display, boasting a 360-degree view camera, Apple CarPlay, Android Auto, digital radio, a 17-speaker Mark Levinson audio system, CD player (!) and shockingly sub-par satellite navigation.

Beyond that, Sports Luxury buyers also score tri-beam LED headlights with adaptive high beams, an informative 8.0-inch driver display, a heated steering wheel, sunroof, powered heated/vented front seats (with memory setting for the driver), a wireless charger, head-up display, keyless entry/start, powered steering column (including retraction for easier access), active noise-control tech, rear privacy glass with sunshades, a powered boot lid with kick sensor, semi-aniline leather with a choice of walnut trims, tri-zone climate control, powered/reclining/heated outboard rear seats with centre armrest climate and audio controls, 18-inch alloys and performance (but not adaptive, crucially) dampers. More on that later.

All Lexus models also include an ‘Encore’ aftersales subscription program offering myriad offers and services including 'free' car rental.

Everything but the cliché sink, then, but is the 300h SL actually good value for money?

No rival can match the Lexus’ mix of sheer size, hybrid efficiency, spec generosity and aftersales support.

But around that $80K mark, the cheaper yet roomier Skoda Superb and smaller Volvo S60/V60 and VW Arteon 206TSI all feature all-wheel drive, as do the classy Audi A4/A5 quattros, while the rear-drive-biased BMW 3/4 Series, Genesis G70 and Alfa Romeo Giulia are far more focused on character and athleticism. Serious competition all.

And, as we found out, none can be mistaken for a Camry. Image is important at this level.

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.

Doing duty in a cornucopia of Toyota products, the ES 300h’s A25A-FXS engine remains the same as the pre-facelift model, meaning it is a 2487cc (2.5-litre), double overhead cam, 16-valve Atkinson Cycle in-line four-cylinder petrol unit with variable valve timing.

In this application, it makes 131kW of power at 5700rpm and 221Nm of torque between 3600rpm and 5200rpm, and sends that through to the front wheels via an e-Continuously Variable Transmission (CVT) with a sequential shift facility offering artificially stepped 'ratios' for a more-conventional automatic transmission sensation.

A series/parallel full hybrid system, the engine is backed up by a permanent magnet synchronous electric motor, delivering 88kW and 202Nm, and is fed by a tiny 1.6kWh Nickel-metal hydride battery pack.

With only a couple of kilometres of pure-EV driving availability, and only under light throttle or when coasting along, the latter is recharged via the petrol engine as well as recaptured energy from the regenerative braking system. Combined power output is 160kW. No combined torque maximum is stated.

With an impressive power-to-weight ratio of 92kW/tonne, the 1740kg 300h needs 8.9 seconds to reach 100km/h, and maxes out at 180km/h.

To handle all that movement and mass, the steering is an electrically powered rack and pinion set-up, the front suspension consists of MacPherson-style struts and the rear suspension is made up of a multi-link arrangement.

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.

Rated as Euro 6, the ES 300h requires a minimum brew of 95 RON premium unleaded petrol.

But that’s where the bad news stops, because over 626km of all sorts of driving in hot weather with the tri-zone climate control in full workout mode, we averaged an extremely commendable 5.6 litres per 100km. Well done, Lexus.

That’s against the official combined average of 4.8L/100km, which equates to just 109 grams per kilometre of carbon dioxide emissions. Not bad.

With the 50L tank brimmed, expect a real-world range of about 890km – or 1041km using the official average fuel consumption figure.

Either way, the 300h is mighty frugal for a 5.0-metre long and 1.8-tonne luxury machine. But cab and hire companies already knew that from their Camry hybrids, right?

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.

In the right conditions, the ES 300h is a big, squishy, comfy drive. At low speeds, for instance, thanks to an airtight cabin that does a great job isolating its pampered occupants from the outside world.

You cannot hear the car on start-up because the electric motor whirrs this Lexus off the line instantly, silently and effortlessly. And aided by all the surround-view cameras, the steering is light and direct enough to make parking a breeze. Automotive Valium to soothe your weary head after a long day.

Likewise, get the ES out on a smooth motorway and that relaxed feeling remains, with the 300h being right at home as it lopes along quietly and steadily. Cocooned in sumptuous leather and walnut, the adaptive cruise control gently rolling with the ebb and flow of traffic, it’s easy to zone out in here.

Find an empty stretch of road and you might also be impressed at how instantaneous the 300h’s throttle response is, leaping into action and piling on the speed without even breaking a sweat. This thing ain't slow!

Likewise, if you must hurry through a tight set of corners, the Lexus will remain composed and in control, without skipping a beat. Even the brakes seem well tuned and nicely modulated – something that many electrified vehicles struggle to achieve. It’s all so nice and easy.

So, what’s the catch?

First of all, while hushed when pussyfooting around, the illusion of posh sophistication is shattered once the accelerator pedal is prodded down hard, with the accompanying engine noise seeming incongruous.

Perhaps it’s because we’ve been lulled into an electric peace, but once the revs are up, no amount of sound-deadening will quell the mechanical roar.

And it's that same Camry hybrid symphony you've probably heard hundreds of times before, in the back of a taxi hurrying to the airport.

Except in the Lexus, it's far-more muffled. Like you're wearing headphones. 

Then there’s the question of bonding. While the ES 300h will do what’s asked of it capably and without complaint, there is nothing to connect car with driver.

By this, we mean that the steering is remote and feels numb at all times, with little to no feedback. Enthusiasts will search for the short way home. This is the anti-Alfa Giulia - technically a rival.

Most people will not care about that, but on the Sport Luxury’s 18-inch wheel and 235/45R18 tyre package – while modest by today’s standards – the ride quality is less than ideal on anything but smooth roads.

The ES can easily cope with small-frequency surface irritations, but seems to lack sufficient suppleness dealing with larger bumps and pot holes.

There’s an underlying and often unyielding firmness that undermines this car’s luxury aspirations. We’d dial back the taut handling for more cushiness if we could. Or fit a decent set of adaptive dampers.

Plus, the Dunlop Sport Maxx tyres aren’t as quiet as we’d expect on some of our coarser bitumen surfaces.

Comfy on smooth roads, fast when you need it to be, fit enough to go exactly where you point it to without losing composure, and wonderfully economical even when driven like it’s been stolen, the 300h has much to offer from a driving point of view.

But you won’t be aching to drive it just for fun’s sake. And you’ll quickly learn which roads are less than perfect in your neck of the woods.

Tested in 2018 under a less-strict regime, the ES delivers a maximum five-star ANCAP crash-test rating result. Back then, it scored especially strongly in Adult, Child and Vulnerable Road User categories, and quite well for Safety Assist tech.

There are 10 airbags in total (offering dual frontal, side chest, side head and front-occupant knee protection). The AEB system works between 10km/h and 180km/h, while the lane-tracing, lane-keep and emergency steering assist systems are operational from 50km/h to 200km/h.

Other driver-assist tech includes rear cross-traffic alert, blind-spot monitoring, adaptive cruise control with full stop/go and road-sign recognition and 'Intersection Assist' with 'Turning Assist'. The latter warns and brakes the car if the driver attempts to turn into oncoming traffic.

These are backed up by adaptive LED headlights with auto high beams, 360-degree view cameras, tyre pressure monitors and 'Lexus Connected Services' that can notify emergency services in an accident and track a stolen ES. An alarm with intrusion sensor is also fitted.

You’ll also find anti-lock brakes with brake-assist and electronic brake-force distribution, stability and traction control systems, three rear-seat child-seat tether anchorages and two ISOFIX latches, fitted to the outboard positions of the back bench.

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.

Here is where Lexus really excels nowadays.

Since the beginning of 2021, it caught up with most other manufacturers by offering a five-year, unlimited kilometre warranty with roadside assistance – up from four-years and 100,000km previously. Free towing and loan vehicles are provided for that period, too.

Service intervals are at 12 months or 15,000km, whichever comes first.

The ES offers three years and 45,000km of capped-price servicing, with each one costing $495 – as well as a free loan vehicle and car wash.

Plus, there’s also Lexus’ ‘Encore’ aftersales subscription program offering myriad offers and services.