What's the difference?
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?
In the realm of family friendly mid-size SUVs, few names have the same reputation as Mitsubishi’s Outlander.
While this new one looks almost identical to the previous version, it’s hiding some serious, Australian-flavoured changes under the skin.
But in a segment now full of not only upgraded mainstream rivals, but also new cut-price alternatives from China, does such a modest upgrade to the Outlander do enough to deserve your consideration in such a crowded market?
We went to its Australian launch to find out.
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.
Mitsubishi has leaned into its strengths with this Outlander update, spending its money in subtle areas to upgrade what was already a widely appealing mid-size SUV.
The local tuning has made a notable difference to the refinement and comfort of this version, while subtle updates to the software and interior trim help to refine things even further.
If you’ve had an Outlander before, you’ll love this one, although it doesn’t help the brand to challenge new players on the value front. This leaves you with the decision of whether to pick a brand with the reputation and network of Mitsubishi, or roll the dice on a far more affordable new player.
For what it’s worth, it’s genuinely tough to pick a sweet spot here. I think the best picks are at either end of the spectrum, with the ES being outstanding value, and the Exceed being particularly plush.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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.
Blink and you’ll miss the changes. Actually, squint and you still might miss them. Aside from the eye-catching new 20-inch wheels on the Exceed and Exceed tourer grades and the new ‘Moonstone Grey’ paint colour, it’s hard to tell the new Outlander apart from its predecessor.
Look closer and there’s new lower garnish designs front and rear, a tweaked grille and a smoked appearance for the rear tail-light clusters.
It’s very subtle stuff, but Mitsubishi has chosen to spend its time and money on upgrades on unseen areas.
For example, the bonnet is now steel rather than aluminium, which helps with noise insulation (and also has the side-effect of removing the high-speed ‘fluttering’ effect the aluminium bonnet had on the previous version), there’s additional sound insulation throughout the car, and cladding in the transmission tunnel to make the cabin a quieter place.
Back on the topic of appearance, though, the dash and console has also been tweaked a little. For example, the new screen looks a bit more contemporary, with a much smaller bezel and more attractive software. The console has been rearranged to move the bottle holders to one side of the electronic gear shifter, which makes for a larger centre console.
High-grade leather seat trims also now have alternate patterns, but the range follows the same trims, from cloth on the ES and LS, while the Aspire gets a microsuede and synthetic leather blend, while the Exceed and Exceed Tourer get the ‘high-grade semi-aniline’ leather trim.
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.
The previous Outlander was already known for having a spacious and versatile cabin, and this continues for the new car with a few small tweaks.
The width and satisfying seat positioning continue, and seats in all grades are generous and comfortable, but particularly the leather seats on the Exceed and Exceed Tourer grade we tested.
Adjustability is good in all positions, and the digital instrument cluster has an attractive dual-dial layout and functional display options. While not the best in class, it’s far better than many rivals.
The touchscreen’s new software is meant to be faster, but I found it a bit laggy still, although the integration of Google’s API into the navigation suite is an excellent tweak, making it relevant and useful for much longer.
The tweaks to the centre console make the area more space efficient and useful, but the new cupholders seem strangely shallow, potentially causing large bottles to tip. The tweaked centre console box is nice and large, and the wireless charger is nice and accessible, although its surface is not quite rubbery enough to stop your phone from leaving the charging area in the corners.
The back seat is noticeably stadium – you sit a fair bit higher than in the first row, which eats into headroom in cars equipped with a sunroof for adults. However, width is good, as is the seat comfort.
The rear doors open nice and wide, which should make fitting a child seat easy enough, and the floor is surprisingly flat, too, which makes the middle position more useful.
The third row, which I sampled in an Aspire grade, is both hard to get into and tight once you’re in there. The second row can slide forward on a rail, offering just enough room for me, at 182cm tall, to fit back there, with my knees hard up against the seat in front, and my head nearly touching the roof.
It is for this reason Mitsubishi calls seven-seat versions ‘5+2’. Good for kids, maybe, but not adults for any extended period of time.
The boot is enormous with two rows in use (485 litres in five-seat versions, or 478 litres in seven-seaters), and for this update, the space now has a wider aperture that should make loading objects easier. Space with seven seats up is 163L. Five-seaters get a full-size spare under the floor, while seven-seaters get a space saver.
Braked towing capacity is a middling 1600kg for petrol-powered variants. The brand says not many Outlander buyers are focused on towing as a key capability for the mid-sizer.
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.
Let’s get the bad news out of the way first: prices are up across the whole Outlander range.
The increases are modest, contained to between two to three thousand dollars across this mid-size SUV’s sprawling eight-variant range.
It sounds like an overwhelming number of versions but the Outlander is split across five grades in front- or all-wheel drive, with either five or seven seats.
Check out our pricing table below for the detailed prices before on-road costs:
Traditional rivals in the 5+2 mid-size SUV category include this model's platform-mate Nissan X-Trail (from $38,025 - $59,265) and the Honda CR-V ($41,900 - $59,900), with the Hyundai Santa Fe ($53,000 - $72,500) and Kia Sorento ($50,880 - $84,660) being a price-bracket above.
The biggest issue is the Outlander is facing increased competition from models like Chery’s Tiggo 7 (as a five-seater), which can be had for as low as $29,990 drive-away! Even the most expensive version of the Tiggo 8 (seven-seater) in plug-in hybrid form costs the same as a mid-grade Outlander, at $49,990 (d/a).
Options like this put the choice back in your hands. You can choose a brand with the heritage and support network of Mitsubishi, or you can go with the value of a new player yet to put those runs on the board.
Although it has an almost identical visage to the previous car, there are some major upgrades hidden below the metal. Sure, there’s a tweaked equipment list, but importantly, there’s a completely revised ride and handling tune, which was developed by Mitsubishi right here in Australia using local expertise.
It’s a similar program to the successful ones undertaken by Kia and Hyundai in recent years to improve the handling of their cars, and Mitsubishi in Japan was impressed enough with the depth of the changes that most of them have been adopted to the global tune for the car.
On the topic of standard equipment, LED interior lights and the 12.3-inch digital dash have been made standard across the range, there is now seat ventilation to join the seat heating for the front two positions in the top Exceed and Exceed Tourer grades, while the upper mid-spec Aspire grade scores front seat heating and a heated steering wheel.
The 12.3-inch multimedia screen has also been upgraded, featuring a smaller bezel and more processing power for a faster response rate, as well as a tweaked software suite with a new layout. This screen also hosts wireless Apple CarPlay and Android Auto across the range.
In addition, there’s also the introduction of the Mitsubishi Connect phone app, which features a range of safety and security features, as well as the ability to remotely control things like the ignition, climate system, navigation and locking system.
Across the range the audio system has also been upgraded to an eight-speaker Yamaha-developed system, with the top-spec Exceed Tourer grade scoring a 12-speaker Yamaha system with up to 1650W of power.
The interior now uses higher-quality materials, according to the brand, with extended upholstery across the range. The top-spec Exceed Tourer also scores a new brown interior colour.
A 360-degree parking camera is now standard across the range, and the safety suite also includes the driver monitoring system and traffic sign recognition system as also used in the Triton.
The plug-in hybrid version, which is what the Outlander is arguably most famous for, is not yet available, but Mitsubishi tells us it will arrive in a few months time, at very least before the end of 2025, and it, too, will carry an Australian-developed ride and handling tune.
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.
The petrol-powered Outlander soldiers on with a drab non-turbo, non-hybrid 2.5-litre four-cylinder engine, mated to a continuously variable automatic transmission.
The brand calls this combination “proven” and it’s hard to argue given it hasn’t cropped up with any major reliability issues in the pre-facelift car.
Still, it produces a middling 135kW/244Nm, not as punchy as many turbo options, and nowhere near as efficient as hybrid alternatives.
Those seeking a more powerful fuel-sipping option may want to wait for the PHEV version arriving later this year.
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.
As a result of its relatively old-school sounding powertrain, fuel consumption isn’t at the forefront of the petrol-powered Outlander, with official consumption ranging between 7.5L/100km for the lightest five-seat ES 2WD version, to 8.1L/100km in the heaviest, top-spec Exceed Tourer AWD.
C02 emissions are also on the high side, which the brand will no doubt be off-setting with the new PHEV version which will offer even more emissions-free driving range than before.
One benefit of this long-serving engine, though, is it can be fed entry-level 91RON unleaded, better for the back pocket. The petrol-powered Outlander has a 55-litre fuel tank.
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 Australian team had a significant amount of input on the driving dynamics of this new Outlander, but does it make a big difference behind the wheel?
We were granted the chance to drive the old one alongside the new version to find out, and the changes are significant.
Overall, the character of the car hasn’t been fundamentally altered. This is still a somewhat plush and soft-around-the-edges family SUV, but redeveloped new suspension parts and even very minor, nerdy modifications like the thickness of sway bars have added up to a much more pleasant vehicle to spend an extended amount of time in.
The first thing you’ll notice is the retuned steering. Mitsubishi’s engineers tell us the tweaked feedback was all down to the software in the rack, and it’s a big difference, upping the firmness of the steering at low speeds, keeping the vehicle on track with more confidence while heading straight, and also removing a slight twitchiness with sudden adjustments.
Next is the cabin ambiance. The new Outlander is a relatively quiet place to be thanks to the extra insulation throughout. It combines with the new steering to give the car much more of a sense of heft than before. The engine is reduced to a distant thrum, and the road is damped away for the most part. Mitsubishi says the 20-inch wheels are a particular hit with buyers, which to me is a shame because I’m willing to bet it’s particularly comfy on the lower-grade tyres.
Elsewhere, the Outlander has a softer initial response to bumps thanks to retuned shocks, and the reduced width of the front sway bar makes for less ‘head toss’ for front seat occupants.
Does it make a significant difference? Yes. The new Outlander is all-round better balanced and better suited to our road conditions. It might not have the sophistication of more expensive options, and it still might be a tad off what the also balanced-and-comfortable RAV4 offers, although it will be interesting to get one back to see how it compares to rivals in a like-for-like test.
Just expect a much more comfort-oriented option than some rivals. These changes don’t make the Outlander as fun to drive as a Mazda CX-5 or a Skoda Kodiaq. For example, while the 2.5-litre engine and CVT combo provides a surprisingly urgent initial response, it's a dull, rubbery power application from there on.
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).
The Outlander has a robust array of active safety kit, with all the key gear like autonomous emergency braking, lane support, blind-spot monitoring and rear cross-traffic alert available across the range. Traffic sign recognition and driver attention monitoring is now available from the new Triton, however it is also worth noting some relatively minor items are only available on higher grades.
The ES and LS grades miss out on adaptive high beams, traffic jam assist and steering assist (although they maintain lane departure warning and lane-keep assist).
Mitsubishi is hoping the updated Outlander will qualify for a continued five-star ANCAP safety rating held by the pre-facelift model.
During our drive we also found the lane-keep and driver attention software (which was much-derided at the launch of the Triton) was reasonably well behaved, with the brand saying it had had significant software tweaks over time to make it less invasive. We’ll need to save our final verdict on this system for when we spend an extended time behind the wheel.
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.
Mitsubishi continues to offer its near-industry-leading 10-year/200,000km warranty, conditional on the car being serviced at a Mitsubishi dealer. Otherwise, it reverts to a five-year/100,000km promise.
The 10 years of warranty is joined by 10 years of capped-price servicing required at 12 month or 15,000km intervals.
Prices are tame, varying between $320 and $680 per visit, for a total yearly average of $434. It’s not the cheapest yearly average out there, but most brands also don’t have capped price servicing extended this far, so it seems like a good deal regardless.