Cupra Australia targets 7 models and 7000 sales by 2025

Cupra has confirmed its Terramar plug-in hybrid SUV, Tavascan electric EV, and Urban Rebel ultra-compact EV will come to Australia – as the Volkswagen Group’s Spanish brand targets 7000 sales by 2025.

Cupra Australia announced its local ambitions at its official media launch in Sydney this week, stating that it aimed to kick off with 1600 sales in the second half of 2022.

The Cupra range initially comprises the Leon hatch, Ateca SUV and Formentor flagship SUV.

They will be joined in early 2023 by the brand’s first EV, the Born hatchback that’s twinned with the Volkswagen ID.3 that’s also expected to come to Australia eventually.

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In 2025, the line-up will expand with the Urban Rebel ultra-compact EV, Tavascan electric SUV and Terramar hybrid to help Cupra reach its sales goal and continue its transition into a fully electric brand by 2030.

Global brand CEO Wayne Griffiths says Australia makes a natural market for Cupra’s expansion as a challenger brand, though says the company will know within a few years whether it is succeeding here or not.

“I think now is the right time, not only for Australia, but for Cupra in general, because you see with the disruption of our industry from [the transition from] combustion cars to electric cars, you see a lot of new players arriving to the market,” said Griffiths.

“There are probably two phases [in Australia]: we launch a brand now with the existing line-up that we have with the Ateca, Leon and Formentor. And we need to get to a relevant volume within the next couple of years in the first phase… get to whatever, I don't know, 3000 cars.

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“To me, the measure of success will be: does the brand resonate in Australia as it is doing already in Europe?

“If we do that, then I couldn't care less if it's 5000 or 10,000 [cars we sell here]. We're not here for the volume… we are here to extend our global footprint and prove we can be a global brand, not just a brand based in Europe. And we've come to the place furthest away possible to prove that."

Griffiths acknowledges Australia isn’t a straightforward market, with a proliferation of brands competing for a share of about a million sales – a tiny volume by the standards of most mature western markets.

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“I don't underestimate how tough the Australian market is today and how tough it will be in the future. Because I think a lot of other new brands will be entering the market like us as well.

“But I think [Australia is] still a very open-minded market. I think if you are authentic and deliver what you promise [as a brand], then you could hit a nerve here in Australia. And I think doing sporty cars is good for Australia. It's a sporty country.”

The 2025 sales target is ambitious for the brand that was spun off from its parent company Seat in 2018. Cupra was previously a sporty trim grade like R is to Golf.

It took stablemate Czech brand Skoda 12 years in Australia to reach 7000 sales.

Cupra has the advantage of offering SUVs immediately, however, while the brand will be hoping the Australian market accelerates towards electric vehicles sooner rather than later.

Cupra says it wants to achieve five per cent of the global EV market “in the long term”.

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Cupra Terramar

Plug-in hybrid variants are being offered as transition models for those not yet ready to commit to fully electric. This includes a plug-in version of the Formentor available in Australia, followed by the Terramar from 2025 – the SUV that will feature the brand’s last internal combustion engine.

The Cupra Urban Rebel forms part of the VW Group’s plan to introduce a series of genuinely affordable electric vehicles.

The Spanish brand is targeting half a million global sales by 2025. It sold just under 80,000 units in 2021, triple its result in 2020.

Formentor is by far its most popular model in the UK and Europe, accounting for nearly 55,000 of Cupra’s 2021 sales.

Cupra Australia expects the Formentor to be the dominant model initially, with about half of sales. It also believes the Born EV can account for up to a fifth of its sales in 2023. Cupra has previously said the Born could be priced similarly to a VW Golf GTI hot-hatch.

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Cupra Tavascan

Cupra models will be sold in Australia using an agency model and Cupra Garage store-style showrooms. Cupra Australia says it has already had more than 11,000 expressions of interest.

The media launch was held at its first and flagship Cupra Garage in Sydney, which features a café as part of its set-up. The Garages will also include a selection of the Cupra vehicle range, sell merchandise, and showcase the brand’s history.

Cupra Australia plans to expand its Garages to 15 nationwide sales locations by 2023.

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Cupra Urban Rebel