Cupra's Terramar VZ5 Is Getting The RS3's Epic Five-Cylinder

Soon, there will be a third VW Group vehicle using the iconic turbocharged 2.5-liter inline-five, and it won't have an RS badge. Instead, these spy shots show that Cupra may be building a flagship Terramar VZ5, which follows in the footsteps of the Formentor VZ5 using the same potent engine as the Audi RS3.

There's little to differentiate the striking Terramar VZ5 prototype in these images from other existing models, including the Terramar VZe, and that seems to be the point. The five-cylinder Formentor VZ5 looks largely identical to lesser models, making it a bit of a sleeper, and the same could be true for the Terramar VZ5. While the design of the new 2.5-liter Terramar may not stand out, our spy photographers claim this tester filled the air around the Nürburgring with the characteristic sound of the turbo five-cylinder.

Earlier this year, it was reported that Audi will be forced to kill off the RS3 in the third quarter of 2027 as it will fail to meet Euro 7 emissions regulations, but the 2.5-liter mill could be given a lifeline in less stringent markets, including the U.S. This should allow Audi to keep producing it beyond the RS3's demise, and the automaker has also expressed a willingness to explore electrifying the five-cylinder engine if it allows it to meet European regulations.

In the new Terramar VZ5, this engine should be just as punchy as it is in the Formentor VZ5. This means an impressive 384 horsepower and 354 pound-feet (480 Nm) of torque, routed to all four wheels through a seven-speed dual-clutch automatic transmission. Beyond its impressive power and torque figures, the five-cylinder is beloved for its sound, and this alone should transform the driving experience. The sprint to 62 mph (100 kph) should be completed in around 4.2 seconds, which isn't quite as quick as the Audi RS3, but it's still impressive.

The most obvious visual difference between the existing Formentor VZ5 and other versions is the stacked quad exhaust system, configured much like the old Lexus ISF and Ferrari California. Curiously, this Terramar VZ5 prototype doesn't have this same design and appears to sport the same regular four tailpipes as other variants like the VZ and VZe. It's possible this could change for the production model.

The front is all familiar and has the same dark gray grille and air intakes as other Terramar offerings. Similarly, the wheels don't appear special, nor do the brakes, which continue to include bronze-painted front calipers. Global production of the Formentor VZ5 is capped at just 4,000 units. It's possible Cupra will also limit production of the Terramar VZ5, though this has yet to be confirmed. Whatever the case may be, the new SUV is expected to debut in early 2027.