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?
Another day, another China-backed EV brand launches in Australia. This one, though, should be at least be vaguely familiar, with Smart having previously operated in Australia about 15 years ago, back when it was a Mercedes-Benz sub-brand rocking the tiny and clever Smart ForTwo and ForFour.
Mercedes is still involved, though now as a 50/50 joint venture partner with Chinese giant Geely, though the new Smart family is not being delivered by either company, and are actually being distributed by Mercedes’ biggest global dealer group, LSH Auto.
All of which is a load of information you don’t really need. But you should know, as a result of all that, the brand is promising a fleet of semi-premium EVs designed in Germany and built in China, with the Smart #1 the first to touch down in Australia.
Oh, and they pronounce the “hashtag” part of the model name, but I just can’t see that strategy becoming part of the Australian lexicon.
Anyway, part-Chinese, part-German and all electric. So should the #1 be on your EV shopping list?
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.
It’s easy to get lost in marketing hype, but — based on first impressions — the Smart #1 does what it says on the tin. This is a Chinese-built SUV that feels more premium than most, and one which is priced to tempt you from one of the German big three. The warranty isn’t good enough, though, and the multimedia screen can be infuriating, but it drives very nicely, especially on suburban roads.
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.
There is an impossibility pretty model in Smart’s new line-up, but the #1 ain’t it. While the #3 — which has also just launched — is a sleek-looking, coupe-style SUV, the #1 is a top-heavy small SUV that doesn’t shine from every angle.
Front-on, or from a front three-quarter angle, the #1 definitely works, with the brand setting out to remove unnecessary fussiness from the design, leaving smooth and rounded bodywork in its place.
There are no body creases or weird angles here, instead it’s a smooth, fluid-like design that flows from the front LED lights bar to the smooth shoulder lines to the matching light treatment at the rear.
But it’s at the rear where, for mine, the design begins to fall over. From that angle, the #1 looks skinny and top-heavy, especially when wearing the red hat of the Brabus model.
Still, eye of the beholder and all that.
Inside, though, the #1 kicks all sorts of goals, presenting as a properly premium-feeling EV space that’s swimming with technology and lovely cabin materials.
I particularly love the letterbox-style screen that replaces the traditional dashboard. It’s not distracting or overbearing like some twin-screen set-ups, but clearly shows you the key driving stuff you need when you’re on the road.
Side note, though, the massive central screen is super clear and lightning fast, but as usual you need to spend some (a lot) of time with it to figure out where all the functions are hiding, with most of the car’s key controls hidden within its labyrinth.
And side note two, the background graphics look like they were designed by a cordial-addled child, it is busy, cartoonish and out of keeping with the calm, grown-up nature of the #1’s cabin.
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 Smart #1 measures just under 4.3m long, just over 1.8m in width and around 1.6m in height, and it rides on a 2.75m wheelbase. And the perk of the Smart’s EV powertrain, the brand says, is Mercedes-Benz E-Class levels of space in the back seat, despite the #1’s diminutive footprint.
It’s a big claim, and while I didn’t break out the tape measure I can say the backseat feels plenty generous, and because the rear pew slides forwards or backwards by 15cm, you can choose whether you want more legroom or more luggage space.
Speaking of which, pop the auto-opening boot (by hitting the ‘a’ in the ‘Smart’ lettering, which I couldn’t figure out without help) and you’ll find 323 litres of space with the back seat as far back as it goes, growing to 411 litres with it pushed all the way forward. There’s also a 15-litre frunk.
Smart says the #1 weighs 1800kg, adding it will tow 1600kg — but I’m sure you can imagine the impact a heavy load will have on your driving range.
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 #1 is available in three trim levels — the Pro+, Premium and Brabus — and pricing (before on-road costs) climbs from $54,900 to $58,900 and $67,900.
Brabus, by the way, was a lesser-known Mercedes-Benz tuning arm, a little like AMG, which should give you some idea of what to expect from the performance-badged models.
Anyway, that pricing is good enough to undercut key rivals, including the Volvo EX30 (from $59,990) and BMW iX1 ($78,900), and it’s drastically less than Mercedes-Benz's EQA 250 ($84,900), all before on-road costs.
Also firmly in the Smart’s favour is that there isn’t a cheap-feeling model among them, with even the Pro+ feeling properly well-equipped and premium.
Entry-level cars score 19-inch alloys, a panoramic roof, LED lighting, a powered tailgate and a 12.8-inch central screen with wireless Apple CarPlay and Android Auto, and a 9.2-inch digital dashboard. There’s wireless device charging and a decent stereo, too.
The Premium then adds matrix LED headlights, leather trim, a huge head-up display and a better Beats stereo, while the Brabus scores a unique interior and exterior treatment, better suspension and a launch control function.
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.
There are two drivetrains on offer here - one shared across the Pro+ and Premium, and another delivering the prodigious power of the #1 Brabus.
The first shared option is a single rear motor that delivers 200kW and 343Nm, which is enough to knock off the sprint to 100km/h in 6.7 seconds. Top speed for all models is listed as 180km/h.
The Brabus, though, adds a motor at the front axle, giving it AWD, which ups the outputs to a punchy 315kW and 543Nm, dropping the sprint to 100km/h to a very fast-feeling 3.9 seconds.
It’s a single-speed EV transmission in each, which means smooth, constant power delivery with no traditional ‘steps’, and all get 'Eco', 'Normal' and 'Sport' drive modes, though the only thing they impact is the accelerator response.
You can add weight to the steering, but that’s a separate item accessed elsewhere in the screen’s sub-menus.
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.
All Smart #1 models share the same 66kWh battery, but how far you can travel between charges comes down to the trim you choose, with the WLTP driving range either 400km, 420km or 440km. The Brabus, of course, covers the least ground between charges, owing to its dual-motor set-up and amped up power outputs.
When it comes time to plug in, all models are equipped with 150kW DC fast-charging capability, and when plugged into said charger, you can expect to go from zero to 80 per cent charged in less than 30 minutes.
There’s also 22kW AC charging on board in the Premium and Brabus models, which means you can use three-phase power, but plugged into a regular 7.4kWh home wallbox should see you go from zero to 80 per cent charged in 7.5 hours, which means overnight charging should work a treat.
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 #1 and its sister car, the #3, might share powertrains and batteries, but they are designed to drive very differently. The #3 is the sporty one (always code for a firmer ride), while the #1 is supposed to be softer, more comfortable and more city-friendly.
That’s the theory, at least. In practice, I have no idea. My time behind the wheel of the #1 was limited to its most fire-breathing model — the Brabus, which also scores its own suspension components — and soft is not a word that comes to mind once you’re strapped in behind its bright red seatbelt.
It begins with those bonkers power outputs, 315kW and 543Nm, which deliver genuine push-you-back-in-your-seat acceleration every time you stand on the go pedal.
Better still (well, I think so, at least), is that activating its sportiest 'Brabus' mode also unlocks a deep Abarth-style burbling soundtrack that rises and falls with your inputs.
But like most performance EVs, you can also dial the drive experience right back. In its softer drive modes the #1 Brabus feels calm and comfortable and not overly reactive, which makes sense, given the only thing the Brabus mode changes is accelerator sensitivity.
The result, though, is a car that you can tootle around in silently when you want to but hides a nuclear weapon under your right foot when you want to unleash that part of its personality.
Downsides? It’s got plenty of point-and-shoot power, but in the few corners we managed to find in it, it didn’t quite live up to the all-out-performance badge. There’s a bit too much movement in the body — a symptom of its near-2.0-tonne weight — and it doesn’t feel entirely engaging.
A couple of important caveats, though. We didn’t get long behind the wheel of the #1, and the dull-as-dishwater prescribed drive program revealed little about its true performance potential. So, we’ll have to wait until the model is properly through the CarsGuide garage to give you a deeper dive on this one.
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).
Full credit to Smart on this one, because the #1 comes with a pretty stacked active (crash avoidance) safety tech list, and though our test drive was far from exhaustive, only the speed limit warning (which you can switch off) felt overly intrusive, with the rest just sort of humming away in the background.
The full package includes things like adaptive cruise control, lane keeping assist, traffic-sign recognition and the aforementioned speed limit warning. There’s also AEB, along with seven airbags, all of which has earned the #1 a five-star Euro NCAP safety rating.
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.
Warranty is a definite soft spot, with LSH Auto offering five years or 150,000km, whichever comes first. For reference, other Chinese newcomers include Chery (seven years) BYD (six years) and GWM (seven years), while MG has just shifted to a 10-year warranty.
Still, service intervals are 12 months/20,000km, and you should be able to take your Smart to any LSH Auto Mercedes dealership (in Melbourne, Brisbane and Sydney) or either of the Smart dealerships in Sydney or Brisbane.
Service cost for the first four years averages $611 per workshop visit for the Pro+ and Premium (worth noting the fourth service is a big one) and $780 for the Brabus. Not particularly small numbers.