By the time you read this, Cupra, an all-new brand from Spain will have sold over 1000 units in 2023 in Australia.
It may seem like a comparatively small number for now, but the brand has big aspirations to move up to 7000 units a year. So why are people choosing an unknown brand, and why has Cupra succeeded where others have struggled, or even failed?
When asked if Cupra is on target to hit its 7000-vehicle goal, Jeff Shafer, the brand’s Head of Product and Planning, explained “that’s the trajectory”.
“We’ve talked a lot about what success means for us, and it means we’re hitting the right nerve with Australians, I think we’ve done that. 7000 units? Maybe in 2025, that’s still the trajectory.
“We don’t want to shy away from volume targets, but it’s more about carving out the right segment. Right now, we’re still in the expansion phase. We’ve launched with a strong [dealer] network and in terms of volume, but we have more to do in terms of reach.”
For a comparison, other unknown newcomer brands, like Polestar and Genesis have sold 670 and 445 units respectively so far this year. For Polestar, this is still what success looks like, as the brand is supply constrained and delivering every vehicle it can get into Australia.
When asked if Cupra is comparing itself to these other newcomers, or even brands like Mazda, who has repositioned into Cupra’s semi-premium market segment, Shafer said the brand was wary of making direct comparisons.
“Cupra wants to chart its own course,” he explained. “I know some might just say this, but we really don’t target anyone. If you start to look at someone as your direct competitor, you’ll follow what they do, and we don’t want to be a follower.”
Shafer was also confident that Cupra could move up to 1000 units of the new Born electric hatch, which was originally planned to have an initial allotment of 500 units, but overwhelming pre-sales have impressed the brand’s Spanish HQ into unlocking ‘unconstrained’ supply for the model, with Shafer confident that if supply could keep pace with demand, the EV would sell up to 1000 units in its first year.
Despite these volume ambitions though, there was much talk of the Cupra brand carving out its own spot in the market.
“We talk about being niche, but this isn’t something we’re framing in volume terms,” Shafer said. “I think we need to retain an edginess, and not water the brand down just to chase a few units here and there.”
One of Cupra’s biggest initial advantages, however, has been keen levels of supply for its four-vehicle range, while even Australia’s favourite brands are struggling due to shortages across the industry.
When asked if there was a concern this initial surge was more to do with availability than people seeking Cupra out, Shafer was confident the brand was building a long-term foundation, and its temporary supply advantage, while certainly beneficial, wasn’t the key for the Spanish marque’s long-term success.
“We don’t take Australia lightly, any brand takes time to establish. It’s not a sprint, it’s a marathon, and being consistent about brand messaging, being consistent with the product. This will protect us over time. We’re looking to the future, not tomorrow or next week. It’s more like two years, five years. This is why we’ve talked so openly about products which are still a few years away.
“If you can make it in Australia, you can make it anywhere, the customers here are discerning, the road conditions are challenging, but we think we’ve got a really sharp offering.”
In terms of supply going forward, the brand said it had the full backing of HQ: “Logistics are a headache at the moment, but so far the factory has really backed up the talk with action.”
Aside from the just-launched Born which arrives in a single $59,990 before on-road costs variant with a 170kW/310Nm rear-mounted motor and a 510km driving range, Cupra is putting its best foot forward with the aggressively-styled Formentor crossover, (which makes up the bulk of Cupra sales with 600 units on the ground this year), Leon hatchback, and Ateca small SUV.
The promised big future for the brand includes the all-electric Tavascan SUV, a city-sized hatch based on the Urbanrebel concept (both on Volkswagen’s all-electric MEB platform), the Terramar mid-size SUV, and potentially even a sports coupe, based on the Darkrebel concept.
Keyword: Cupra is leaping up the sales charts, so how is a small unknown Spanish brand succeeding where others have failed? And why is Australia so important?