Big plans need a big SUV: Cupra

CUPRA is growing its range, but it hasn’t yet introduced a properly ‘large’ vehicle. However, that’s about to change, with the brand’s plans to expand to the North American market necessitating such an addition.

 

That’s according to Sven Schuwirth, Cupra executive vice president of sales and marketing, who was in Australia recently for the soft launch of the new Tavascan electric crossover coupe.

 

That model is currently the largest on offer from Cupra – the brand based in Barcelona, where smaller cars are still more popular than bigger ones – but it is clear that larger vehicles are desirable in physically larger countries, and so with the brand’s expansion to the North American market planned by 2030, Mr Schuwirth says it is abundantly clear a bigger car is needed.

 

“We are aiming for a bigger one,” he said when asked if the Terramar (due in 2025) will be the largest model in the brand’s model mix.

 

“I’m just thinking about the Formentor… It is not an SUV, it’s like combining two cars. It’s an SUV on the lower body and it’s a hatch on the upper body, simply combined.

 

“It has a quite comparably low seating position, very sporty for the seating position. Which if you take traditional segment trends, five years ago, you would say ‘never ever will that car work’.

 

“But by accident, or not by accident, the car has managed to sell roughly 120,000 units a year. It’s a clear segment leader right now, and many other companies are trying to copy us,” asserted Mr Schuwirth.

 

It is not clear what the new-generation large SUV will share its platform with, but the VW Group has a number of options.

 

Mr Schuwirth also didn’t state whether it would be an ICE or EV model, but the brand has previously stated the all-new Terramar model due in 2025 would be its last model with ICE tech.

 

“The recipe will always be sporty DNA being applied in the design, the exterior and interior, as well as the driving dynamics, we will apply it on a bigger car,” he said.

 

“Don’t get me wrong, it’s not a family-oriented car, because that would not be a Cupra. So, our DNA will be very consistent. In Australia and the UK, I know it’s going to focus on that front right seat, and the rest of the front left seat – so it’s for the driver.”

 

Mr Schuwirth said that the global expansion of the Cupra brand has meant that markets like Australia have been granted access to a diverse range of models, and he also said that there is much greater expansion planned, and that while the Cupra nameplate isn’t ever intended to be a “mass market” range, that increases in sales across Europe and other markets are expected as the model line-up diversifies.

 

“Currently we have roughly two per cent market share in Europe, and we’re aiming for an additional one per cent, which brings the tally to 450,000 to 500,000 units and Europe,” he continued.

 

“That’s one part; but we also want to keep our price position which is clearly above the normal volume mass market. It’s not the same level as a luxury brand and will never be the case.”

 

Mr Schuwirth also said he expects sales for Cupra in Australia to increase over time, but he’s not expecting to have three per cent of the market. On current sales trajectories that would require Cupra to sell more than 37,000 units per year in our market.

 

“Not in that same timeframe, it’s impossible,” he insisted.

 

“We’re not naive, but yes, for sure, we want to play a relevant role in a very competitive market. I’m not saying three per cent, but for sure clearly about one per cent, in the direction of two per cent.”

 

That comment comes at a time where Cupra’s sales are somewhat slow, with a drop of 27.5 per cent in terms of volume, compared to the same time last year, the first six months saw the brand register just 1150 units.

 

Mr Schuwirth intimated that the business needs to be realistic with its targets, which had previously been stated at 7000 units for 2025.

 

“No, we might adjust that for sure,” he added.

 

“The overall environment that is currently happening in the Australian market, it is somewhat struggling at the moment.

 

“And we need to remain flexible. It’s a core recipe of the success of Cupra. It’s a buzz word, but we are quite agile and flexible, so just in terms of the product offers – BEV, plug-in hybrid, mild-hybrid, ICE – we have everything right now, but it’s also how we approach the market.

 

“It’s not only the Chinese brands and the competition for us, but whatever happens on the subsidies from the government, the tax regulations. We are living in a very unclear environment, which has also made us even stronger.

 

“Keep in mind, we launched this brand in COVID, then we had semiconductor shortages, and in Europe we have wars – one in Ukraine, one in Israel – so it’s a different story.

 

“We have logistics issues, we have energy issues, and I think that remains the same, and that again leads you back that we need to remain flexible as an organisation including our largest national sales companies, but still have a target in mind,” he concluded.