Cupra Ateca to gain cheaper base model in Australia

The Cupra Ateca compact SUV is due to add a new entry-level variant in Australia later this year promised to be the Volkswagen-owned car maker's cheapest new SUV.

Due between July and September 2024, the Ateca V will use a detuned 140kW/320Nm version of the flagship VZx's 221kW/400Nm 2.0-litre turbo four-cylinder petrol engine – and fit fewer standard features.

It comes as sales of the Ateca are down 80 per cent in the first three months of 2024 – due to an influx of rental-car deliveries this time last year – and it has become Cupra's slowest seller in Australia.

Prices are yet to be revealed, however Cupra executives told Australian media it will become the "entry point" to its SUV range, suggesting it will undercut the $56,490 drive-away Formentor V.

The circa-$14,000 difference between V and VZx versions of the Formentor suggests the new entry-level Cupra Ateca could be priced from about $55,000 drive-away, compared to the $68,990 drive-away Ateca VZx.

While the less powerful engine will lower the price, the Ateca V will compete head-on with its twin, the Skoda Karoq Sportline, with which it shares much of its body structure (but with styling differences), underpinnings and 140kW engine.

The Karoq Sportline is priced from $52,490 drive-away – though option packs can push it close to $65,000 drive-away.

In both vehicles, the 140kW/320Nm 2.0-litre turbocharged four-cylinder petrol engine is matched with a seven-speed dual-clutch automatic transmission and all-wheel drive.

"We haven't announced the pricing yet, we'll announce that shortly," Cupra Australia director Ben Wilks told Drive.

"But the equipment offer will be very strong, and broadly quite similar to the 221kW car, but with the 140kW engine. And I think that brings Ateca to another opportunity."

Standard features in the VZx include a 9.2-inch touchscreen, 10.25-inch digital instrument display, 19-inch alloy wheels, nine-speaker Beats stereo, Petrol Blue leather upholstery, heated front seats, wireless phone charging, and a suite of crash-avoidance technologies.

In the meantime, Cupra Australia is offering the Model Year 2023 and 2024 Ateca VZx for $58,888 drive-away until 30 June 2024, a saving of $10,102 or about 15 per cent.