Cupra won’t follow Tesla, Ford by cutting EV prices

Cupra is preparing to introduce several new electric vehicles (EVs) into the Australian market, and it’s intent on launching each at a competitive but sustainable price.

Successive price cuts by Tesla saw a host of brands slash prices on their own EVs last year, significantly impacting resale values. Between March and October of 2024, Tesla dropped Model Y prices in Australia three times, with the base RWD model falling to $55,900 before on-road costs – around $13,000 less than what one cost in 2023.

With the electric Tavascan SUV and Born VZ both set to arrive by the end of 2025, Cupra Australia says it’s committed to minimising customer anxiety over EV resale values going forward.

The Tavascan starts from $60,990 before on-road costs in Australia, undercutting the related Skoda Enyaq and best-selling Tesla Model Y, while the Born VZ has yet to be priced.

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“Stability is probably the key word here. You have to be responsive to the marketplace, but constantly changing prices every other month isn’t a great place to be in,” Cupra Australia product and marketing boss Jeff Shafer told CarExpert at the local launch of the Tavascan.

“I think we want to have stability, but that doesn’t mean we won’t have offers, financing deals, or other inclusions from time to time.

“But ultimately, we want customers to have confidence in our pricing. We’re not aiming for to be at the entry point, we’ve positioned ourselves to offer something attainable, yet more than just mainstream.”

In addition to competing with other European manufacturers and Tesla, Cupra faces competition from a fresh wave of Chinese EVs in Australia, many of which retail for between $30,000-60,000.

Mr Shafer says that sticker price isn’t everything when it comes to assessing the value of a new EV.

“Another key factor is that value isn’t just about the cost of the car—it’s also about the ownership experience and the support we offer, particularly with our EV offerings,” he explained.

“Whether that’s servicing, battery coverage, financing options, or the ability of our network to support you throughout your EV journey.

“We can help with charging solutions and other aspects of EV ownership, and that’s where our position within a larger automotive group gives us a significant advantage. It’s not just about the day you buy the car—it’s about the experience one year in, two years in, and even five years down the line.”

Cupra will offer two variants of the Tavascan at launch – the base Endurance and flagship VZ – with the latter expected to command favour among buyers despite its higher price tag.

The Tavascan VZ starts from $74,490 before on-roads, a $13,500 premium over the Endurance.

MORE: Everything Cupra Tavascan