With over half a million cars sold since branching off from its parent company Seat in 2018, after 12 years of being utilized as a performance sub-brand, Cupra is thriving. In fact, the up-and-coming Spanish performance brand, which is part of the VW Group, is gearing up for the next chapter in its journey. Just a few days ago, it confirmed plans to expand to the U.S. and Canada by the end of the decade with two models: an electric version of the Formentor crossover and an unnamed “larger, electric crossover SUV”.

While it remains to be seen which model Cupra is referring to, Seat’s spin-off brand is currently putting the final developmental touches on its next addition to the lineup, the Terramar. Cupra previewed the Terramar at its Unstoppable Impulse event two years ago and has stated that it will be their last new vehicle with combustion power.

The Terramar takes its name from the Autódromo de Sitges-Terramar historic racing circuit in Barcelona, Spain, but it takes its engineering lead from Wolfsburg, Germany. The SUV is Cupra’s answer to the European VW Tiguan (not to be confused by the North American one) and shares its MQB platform and running gear with the VW. Audi’s next Q3 will also be part of that mix and the Cupra will be built at Audi’s Gyor plant in Hungary alongside the Formentor.

More: New 2024 Cupra Terramar Previewed As A Hybrid-Only Compact SUV

Not many Terramar buyers will be immediately alerted to the connection when they walk into the showroom. The 4.5 m (177 inches) Cupra SUV has a stronger, less curvy look than the Tiguan and a far more aggressive face with a wide grille, pointy headlights, and a pair of muscular creases in the hood that a designer might have used to signify the presence of a V6 in the old days.

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But the Terramar will in fact get the same 1.5-liter and 2.0-liter inline four-cylinder engines as the Tiguan, some with mild-hybrid tech and some with full PHEV assistance. The VW offers 201 hp (204 PS) and 268 hp (272 PS) versions of the eHybrid plug-ins, each fitted with a 19.7 kWh battery, and if Cupra sticks with the same power pack we should be looking at a similar 62 miles (100 km) of electric range. All-wheel drive will be optional, but there will be no choice regarding transmissions: a seven-speed dual-clutch gearbox will be compulsory.

We haven’t had the opportunity to take a look inside the prototypes yet, but given the brand’s focus on sportiness, the Terramar could boast a driver-focused interior akin to the Tavascan, highlighted by a V-shaped blade that spans the width of the dashboard and extends down to the center console. Additionally, it is expected to have a dual-screen layout similar to that of the Tiguan.

The new addition to the Cupra lineup is expected to be introduced in the second half of 2024.

Note: This story has been updated with new information and a fresh batch of spy photos (March 24).