Overview
FOUR years into the Volkswagen Group’ ambitious launch of its Spanish performance brand Cupra beyond European borders, and into the Australian market, one would have to conclude the commercial results have been mixed.
A small line-up of compact but compelling cars saw Cupra notch up 3765 deliveries in 2023—its first calendar year in Australia—but middling sales in 2024 (2339) and 2025 (2830) have shown there’s work to be done to carve out a reputation for this brand.
This year, Cupra Australia plans to take a big swing at that task by seriously amping up the desirability factor at the top end of its range.
With the first examples scheduled to arrive by Christmas, Australians will be able to order the Cupra Formentor small/midsize SUV with Audi’s 2.5-litre inline five-cylinder turbo petrol engine producing 287kW of power and 480Nm of torque.
Audi rarely shares its five-cylinder, and the prising of the iconic 2.5-litre ‘five from the RS3 and RSQ3 shows just how serious VAG is about making Cupra a long-term success. It realises Cupra needs memorable product.
Production of the five-cylinder Formentor has been ongoing for some time abroad, but tooling at Cupra’s Martorell factory in Spain limited the combination to left-hand drive.
Not anymore: a coalition of executives from right-hook markets convinced HQ to rejig the line to allow for the VZ5 to be built with the steering wheel on the correct side.
Cupra says fewer than 100 units will come to Australia—at least at first. All are in high-specification guise priced at $102,9990 driveaway; if demand is overwhelming, a small additional allocation may be secured.
The VZ5 will crown the facelifted Formentor range in Australia, sitting above several four-cylinder variants, including plug-in hybrid (PHEV) versions and an upgrade to the well-regarded VZx, which moves from 228kW to 245kW.
Like the Audi models associated with the five-cylinder, VAG needs to limit Formentor VZ5 sales because its high fuel use and CO2 emissions clash with effective obligations under the New Vehicle Efficiency Standard (NVES) laws to boost sales of EVs and PHEVs.
Because of NVES, we expect the Formentor VZ5 to be around for a good time but certainly not a long time.
Mechanically, the VZ5 sports 20-inch black/copper wheels, 15-stage adaptive dampers, six-piston Akebono front brakes, AWD and a torque-vectoring rear differential and a beefed-up sports exhaust system with copper-coloured quad vertical-stacked pipes.
Standard equipment will include heated Sabelt Cup carbon bucket front seats in grey fabric and Dinamica—with 12-way power adjustment and memory for the driver—plus an opening panoramic sunroof, Sennheiser premium stereo, convenience entry and push-button start.
For Australia, the only options relate to paint, with premium gloss colours attracting a +$790 surcharge with matte a +$3300 uplift. Notable omissions from the configuration include an Akrapovic exhaust system.
Driving impressions
Cupra might still be hunting for the X-factor that will let it break into the hearts and minds of Australia’s performance-car loving public, but we have been aware of some of the Spanish brand’s upsides for some time.
We have repeatedly found the underlying Formentor to demonstrate superior steering, damping and powertrain tuning to its VAG brethren. Its well-resolved dynamics make it a more rewarding car to drive than any Volkswagen T-Roc or Tiguan or Audi Q3.
Those qualities are all present in the ‘ordinary’ four-cylinder Formentor pre-facelift models of which some discounted stock remains in Australia. In particular, the outgoing 228kW VZx seems like enormously good value at its runout price of $51,990 driveaway.
The VZ5 would have to be very, very good indeed to justify spending nearly double the price of a run-out VZx or at least $40,000 more than the top-end four-cylinder if we ignore present discounting.
To start coming to grips with that question, we hit the hilly roads south of Barcelona in a facelift VZ5 that was completely representative of the car Australia will get other than the location of its steering wheel.
Aurally, the distinction is obvious. The VZ5 ignites with an automatic blip of the throttle and settles into a fast, angry idle that makes the 1-2-4-5-3 firing sequence of the inline ‘five obvious from the very start.
While the VZ5 runs without the kind of fancy Akrapovic titanium exhaust system that Audi, Cupra and Volkswagen have deployed for some four-cylinder models in Australia, we think the five-cylinder is loud enough to make its presence known without having to shout about it.
It’s the same story with the visual presentation of the VZ5. The stacked copper exhausts look enticing—but a passerby won’t notice.
Cosmetic differentiation is limited to things Cupra fans will notice, like distinct 20-inch alloys, wider wheel arches, and subtle badging. Inside, the colour scheme switches from copper to quieter light grey; the Cup bucket seats are an absolute highlight.
Likewise, if you’ve experienced the VZx, you will notice subtle changes to the way the VZ5 moves. While its 287kW/480Nm outputs are not a world away, it clearly accelerates harder, for longer, with a big lift in top-end punch.
That is where the advantages of the VZ5 stop and where a few surprising demerits blend into the experience.
In shoehorning the five-cylinder into the front end of the VZ5, the delicate handling balance of the VZx is diluted—not by much, but enough to note.
Mass might only be up 60kg (to 1701kg) but the bulk is in the front end and whether it’s weight positioning or software, the VZ5’s electric power steering tune has been made needlessly heavier and more muscular.
We wish this hadn’t happened. The light and precise steering of the VZx model evokes the Porsche Macan and Alfa Romeo Stelvio and is in fact one of its great strengths in an industry where ‘heavy steering’ is far too often erroneously misplaced for ‘sportiness’.
Even with its beefier steering and heavier nose, the Formentor VZ5 is still a great deal more fun to drive than most small SUVs, and it does an excellent job of communicating its present grip levels and limits to the driver. It’s just that the VZx is a better-balanced experience.
The four-cylinders have superior relations with the seven-speed wet dual-clutch automatic transmission. The DSG is admittedly superb when pedalled hard in the VZ5, but it bogs clunkily in town.
For now, a benefit of the ‘five is its fitment of the same torque vectoring rear differential found in the RS3 and the Golf R, which enables a selectable ESC-off Drift Mode, but which also enhances the feeling of subtle power oversteer when ESC is set to its Sport mode.
However, the incoming 245kW upgrade to the VZx is also expected to bag the differential and its capabilities so it won’t be a VZ5 advantage for long.
Safety technology is well-tuned and unobtrusive with easy shortcut-driven access to switch off speed and lane monitoring if desired.
Fuel economy wasn’t a strong point on our test, which involved a 50:50 mix of gentle and sporty driving. We recorded 13.9L/100km for a driving range of just 396km from the 55-litre fuel tank.
You can decide whether you like the appearance of Cupra’s mid-life facelift to the Formentor, but the alterations have lifted the cabin presentation. It looks similar inside but the materials have been spruced up and softened around the centre console.
Processing power has been improved for the 12.9-inch central touchscreen and 10-inch digital instrument cluster. Physical shortcuts remain on the thin-rimmed leather steering wheel while climate controls are set permanently on-screen.
VAG remains one of the car industry’s masters of packaging and despite the Formentor VZ5’s compact 4451mm length, four adults fit comfortably, and boot space is a reasonable 420L. No spare for the VZ5, as the 12-volt battery has been relocated to the boot.
So, returning to our central question: is the VZ5 worth at least $40,000 more than its highly capable four-cylinder VZx sibling?
Objectively, no. We prefer the polished, delicate, balanced nature of the four-cylinder, which pairs better with the rest of the Formentor recipe.
However—and it’s a big hedge—resale value has to enter the chat at some stage, and we suspect the VZ5 will offset the huge initial outlay in this area.
Depreciation on Cupra models in Australia appears to be relatively steep, perhaps because of various types of discounting used by the brand to keep sales on the boil for the last few years.
With four-cylinder Formentors set to return in series production, the limited volume of the VZ5 combined with its use of such an iconic engine will likely put the five-cylinder into a class of its own.
Conveniently, that gives us our answer. While top-end four-cylinder Formentors are, we think, objectively better cars to drive, splashing out for the exclusivity and mystique of the five-cylinder could well pay off in the end.









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