Cupra Terramar vs Volkswagen Tiguan

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.

The new Tiguan is as confident as ever in its identity, even in such a crowded mid-size SUV space where there are so many models worthy of your attention.

No matter which version you choose, this is still the mid-size SUV for a driving enthusiast who doesn’t quite have premium dollars to spend.

While it may not quite expand its appeal as much as the brand hopes precluding a hybrid variant, those who are choosing this as their family hauler for the right reasons won’t be disappointed.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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.

The new Tiguan is a bit of a mind-bender. Its new design seems to make it feel smaller than the outgoing vehicle, despite it being both slightly wider and longer.

This, I have decided, is because the design creates a visual effect, where the upper curvier parts seem to shrink it down, and the additional length makes it seem narrower than the more boxy visage of the previous model. Also, it’s 20mm shorter than the previous design, which we’re told combines with the new bodywork to make for a 15 per cent drag reduction.

Either way, it’s nice not to see a mid-size SUV not continually engage in an arms race to get bigger and bigger. Volkswagen will also introduce the dedicated seven-seat Tayron later in 2025. It’s a half-size up and replaces the outgoing Tiguan Allspace, and this time it features a much more distinct design from its Tiguan sibling.

The third-generation Tiguan not only embraces a more curvy design aesthetic than its predecessor, but it also features many more contemporary design elements. The headlights and curvy accents over the wheelarches feel like they more closely associate this SUV with the new ID.4 and ID.5 EVs, while the light bar across the front on some grades combines with the new light bar across the rear to give it a trendy silhouette. It tops things off with the ‘Tiguan’ letterwork on the tailgate, and, as usual, a sporty spoiler fitting giving the rear hatch a bit of depth.

As usual, VW’s array of gloss-black, chrome or plastic garnishes on the outside, depending on grade, offer a subtle and tasteful finish to the exterior appearance.

The inside is revolution rather than evolution, now heavily screen-centri, and featuring an array of lighting features like many of its rivals.

The screens look the part and have fast and mostly straightforward-to-navigate software, while the seat designs are a real highlight, being both aesthetically pleasing and nice to the touch in all grades.

The ambient lighting features add a sense of presence to the cabin, and unlike the outgoing car, the new one feels a bit more driver-centric thanks to the design of the dash and screens effectively pointing their way down the road from the driver’s point of view.

It does away with the sparse feeling of the previous car, elevating things a notch with an increase of nice materials throughout.

While some may find the abundance of gloss-black finishes a bit harder to maintain, it’s hard not to feel like this new Tiguan is a major generational jump from the previous one. Mission accomplished, VW.

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.

Like the previous model, VW hasn’t forgotten its pragmatic touches for the interior, despite its increase in complexity and appointments.

Finding a driving position was easy for me at 182cm tall, with both a healthy adjustment range for the seats and steering wheel. The digital instrument cluster remains one of the best on the market in terms of usability and customisation, while the multi-function steering wheel commits to buttons rather than the widely-disliked haptic feedback panels, which have appeared on various other VW models.

Unfortunately, this doesn’t entirely extend to switchgear for key functions, with the climate control exclusively controlled via touch sliders, a touchscreen menu or the Tiguan’s new voice control suite, none of which are as intuitive as just having a physical dial for temperature and fan speed and buttons for recirculate, auto and on-off.

However, the Tiguan does have a central dial on the console, which can cycle through volume control, drive modes or ambient lighting modes when pressed. A welcome addition.

Moving the shift stalk to the steering column, like the ID.4 and ID.5, has also allowed additional space for the centre console area, which is now quite versatile. It includes a variable-height armrest console box with either dividers or a dual-bottle-holder fitting, which can be interchanged between the two areas, while the dual-charging bays up front have a rubberised cover, which can be pulled down as to not waste the storage space. This has the additional feature of making the cooling system for the wireless charging phones more effective.

There are two large bottle holders and pockets in each door, which have a carpeted finish to reduce vibration, and there’s also a passenger glovebox.

The rear seat offers a healthy amount of space behind my own driving position. I had leagues of knee room and a healthy amount of airspace above me, however the presence of a tall raise for the transmission tunnel eats into the amount of room a centre passenger would have for their feet.

The comfortable seats continue and are on rails if you need to increase the amount of room in the boot, or simply want a more aggressive recline. When it comes to storage, there are bottle holders in each door, a drop-down armrest with dual bottle holders, dual USB-C outlets on the back of the console, as well as dual air vents with a touch control panel for the independent third climate zone. The only thing it seems to be missing is built-in window shades, which are offered on some Skodas and the now-discontinued Passat (RIP).

The boot helpfully features a powered tailgate on all grades, and measures in at 652 litres with the second row up, or 1650L with the seats down. Numbers can be deceptive, but it does seem large for the class, and there’s a space-saver spare wheel under the floor.

Volkswagen is attempting to broaden the appeal of the Tiguan this time around. As such, it hasn’t jacked prices up massively like some recent new-generation versions of rivals, despite a comprehensive cabin tech overhaul and big lift in standard equipment.

As a result, the range is vast, with six variants covering a wide price spectrum and, as the brand says (or hopes), a wide range of potential buyers.

Kicking it off is the base model 110TSI Life, which, at $44,990 plus-road costs, is only $1000 more than the outgoing version. It sports a carryover 1.4-litre turbocharged four-cylinder engine, although it has a new version of VW’s seven-speed wet dual-clutch automatic sending power to the front wheels, replacing the derided dry dual-clutch that marred the base version of the old car.

Standard equipment on the base car is high, including 19-inch alloys, a full array of LED lights both for the headlight clusters and rears, it also includes a 12.9-inch multimedia touchscreen with wireless Apple CarPlay and Android Auto, a 10.25-inch digital instrument cluster with the brand’s signature digital cockpit software, tri-zone climate control, ‘comfort’ cloth seats (said to be benchmarked against the best in-class) with manual adjustments, a leather-trimmed multifunction steering wheel, dual wireless phone chargers, ambient dashboard lighting and even an electric tailgate.

The mid-spec Elegance grade can be chosen with either the 110TSI engine in front-wheel drive, or the new 150TSI 2.0-litre engine in all-wheel drive, priced at $50,690 and $60,690 respectively. It increases the equipment to include chrome styling on the exterior with alternate 19-inch wheel designs, rear privacy glass, improved LED headlights with a lit-up centre strip and dynamic cornering functions, leather interior trim, power adjustments with heating, ventilation, and message functions for the front two seats, and a heated steering wheel.

Alternatively, there is the 150TSI R-Line which starts at $55,690, representing a $4600 price reduction compared to the outgoing 162TSI R-Line. It is also all-wheel drive only and features an R-Line styling pack inside and outside, with sporty but manually adjusted cloth bucket seats featuring integrated headrests up front (which miss out on the heating and ventilation of the Elegance grade), black headlining, an R-line steering wheel with additional contouring, 19-inch alloys in a sportier design, a wider wheel and tyre package for enhanced grip, and the VW’s signature progressive steering tune.

Both 150TSI cars also add adaptive chassis control and hill descent control as standard, with an additional off-road and snow driving mode, while the Elegance specifically scores a larger 15-inch multimedia screen.

Finally, topping out the range is the new 195TSI R-Line priced at a massive $70,490. Not only does this grade score its own 195TSI engine sourced from the Golf GTI, but it also adds everything available in the range, swapping out the 150TSI R-Line’s cloth seats for the leather-trimmed, heated, cooled and massaging ones otherwise only available on the Elegance, along with the larger 15-inch screen, sporty steering wheel and R-Line appearance package inside and out, along with its own set of 20-inch alloy wheels.

Option packs include a black styling pack for the R-Line at $1500, a panoramic sunroof available on the Elegance and R-Line grades at $2100, and the Sound and Vision package, which adds premium audio and the larger 15-inch multimedia screen to the 110TSI variants for $2700.

This makes the Tiguan range span from surprisingly good value at the low end, to a real enthusiast-only proposition at the pinnacle, with VW even pitching the 195TSI R-Line at the lower-end BMW X3 and Mercedes-Benz GLC buyers.

In reality many of its mainstream rivals should include options like the dominant Toyota RAV4 ($42,260 - $58,360), Subaru Forester ($38,690 - $50,140), Nissan X-Trail ($38,025 - $59,265), Hyundai Tucson ($39,100 - $61,100) and Kia Sportage ($32,995 - $55,420).

The surprise, some will note, is all of the Tiguan’s rivals have at least one hybrid variant, where VW has chosen to stick with combustion only for the time being for its new-generation mid-sizer.

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.

There are three engine options in the Tiguan range, and it is notable none are even mild hybrids (MHEVs) in 2025.

The base engine present in 110TSI variants is even a carryover 1.4-litre four-cylinder turbocharged petrol engine, providing 110kW/250Nm to the front wheels. The big news for these base cars is the dry-clutch DCT has been swapped out for the better-performing wet-clutch version, which also has various improvements made to it for this iteration. Notably, VW has stripped-out the stop-start system with this engine and transmission combination. 

The brand says it opted not to use the more recent 1.5-litre MHEV version of this engine as it simply didn’t need it to meet Australia’s new emissions standards and it would have added a prohibitive amount to the cost of entry-level variants to justify its inclusion in the range.

Next up is the new 150TSI engine. It is a 2.0-litre turbocharged four-cylinder unit, which replaces both the 132TSI and 162TSI engines from the previous-generation model. It provides 150kW/320Nm and drives all four wheels via the same seven-speed dual-clutch automatic. This engine also reintroduces stop-start.

At the top of the range, solely available on the R-Line, is the 195TSI engine. VW says this offers buyers of the previous Tiguan R somewhere to go, but also an option for those who wanted more than the previous 162TSI R-Line offered. The 2.0-litre four-cylinder turbocharged 195TSI engine is sourced from the Golf GTI and produces 195kW/400Nm, driving all four wheels via the same seven-speed dual-clutch. It reduces the 0-100km/h sprint time from 7.1 seconds to 5.9 seconds.

It is a shame in the current environment VW hasn’t chosen to make a splash with the 1.5-litre plug-in hybrid (PHEV) variant, which is available overseas. This Tiguan features a 25kWh battery paired to the 110kW engine to make for an estimated 100km electric-only driving range. It even features both 11kW AC charging and 50kW DC charging for convenient top-ups.

If you want it, tell your dealer. VW tells us they’re working on a business case for the PHEV in the background, but if you want electric driving for now, it’s pointing current customers to the ID.4 (from $59,990 before on-roads).

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.

Efficiency is remarkably even across the Tiguan range, with the new engines and updated transmission helping to make things reasonably straightforward.

The base 110TSI versions have an official/combined fuel consumption of 7.6L/100km, as do the 150TSI versions thar benefit from the stop/start system but have the added heft of all-wheel drive.

The top-of-the-range 195TSI R-Line, meanwhile, is said to consume 8.5L/100km. All versions require 95RON mid-shelf unleaded. And for those who care, the 110TSI and 150TSI produce 173g/km of CO2, while the 195TSI produces 194g/km.

Interestingly, the 110TSI variants have a 55-litre fuel tank, while the 150TSI and 195TSI have a 58-litre fuel tank.

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.

The Tiguan range has some significant upgrades from behind the wheel this time around, but there are a handful of areas where I was surprised to find it didn’t quite live up to expectations.

Firstly, the seating position and driver-centric cabin design make the Tiguan feel like more of a driver’s car than ever before. The bucket-style seats and the high beltline combine to make the seating position feel like more of a hatchback than an SUV. Yet visibility out of the cabin is healthy thanks to large windows and mirrors.

As you set off, the Tiguan feels smoother through its drivetrain than its predecessor, thanks to the new dual-clutch automatic being sandpapered when it comes to its initial engagement and shift-mapping. Even the base 110TSI, which can sometimes struggle for initial torque thanks to a dollop of turbo-lag, has a decent roll-on, and with no stop-start system this time, it’s much more friendly when hopping on the accelerator from a standstill.

The steering tune is great in all grades, helping to make this new Tiguan feel light and reactive, despite its slightly expanded dimensions. This lightness is a trait which shines through on this new version, making it feel much less pedestrian than almost all of its rivals.

On the base variant, this can be to its detriment at times, with the 110TSI engine occasionally overcoming the grip of the front tyres when a lot is asked of it, however all-wheel-drive versions are much more confident in their footing, not only delivering power in a more linear fashion, but also putting it to the ground more smoothly.

R-Line variants, with wider and more expensive tyres, are reactive, grippy, and simply outstanding to drive in this mid-size segment, with the 195TSI bringing a strong additional lump of torque and a throatier engine note.

Indeed, this version of the Tiguan leans into the nameplate’s best traits and solidifies its position as the driver’s option in the segment. The 150TSI R-Line in particular stood out as raucous amounts of fun for a mid-sizer for a fair price, as it could be driven significantly harder than the more powerful 195TSI.

However, this new Tiguan was also not without some disappointments. The amount of road noise in all grades was notable, and while VWs are usually known for their balanced ride quality, all Tiguan variants also featured a certain seemingly inherent firm response to sharper blemishes in the road, perhaps a cost for the otherwise superb body control.

These blemishes in driving ambiance were relatively minor in scale, but surprising to find nonetheless.

Every new Tiguan gets the full array of modern active safety kit, including freeway-speed auto emergency braking with vulnerable road-user protections and intersection features, lane-keep assist, blind-spot monitoring, both rear and front cross traffic alert, a 360-degree parking camera suite, driver attention alert, traffic sign recognition, adaptive cruise control and exit warning.

It also features an emergency assist feature, and there’s a suite of nine airbags, including a centre airbag. VW is anticipating a maximum five-star ANCAP rating, although at the time we put this review together, the SUV’s score was yet to be released.

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.

Volkswagen offers the Tiguan with its usual five-year/unlimited-kilometre warranty. While this is still the prevailing standard, the warranty wars are back with more manufacturers pushing into the seven-to-10-year category.

The Tiguan requires servicing once every 12 months or 15,000km, although pricing for the service packages was yet to be revealed at the time we put this review together.