Cupra is developing a flagship Terramar VZ5 model, which will feature the turbocharged 2.5-liter inline-five engine. This engine is currently used in the Audi RS3 and the Formentor VZ5. The vehicle is expected to debut in early 2027.

The powertrain is projected to deliver 384 horsepower and 480 Nm of torque. Power will be sent to all four wheels via a seven-speed dual-clutch automatic transmission. The SUV is estimated to accelerate from 0 to 100 kph in approximately 4.2 seconds.

The prototype spotted at the Nürburgring shares design elements with existing Terramar variants, including the grille and air intakes. Unlike the Formentor VZ5, which features a stacked quad exhaust, this prototype currently displays standard tailpipes. It remains uncertain if production will be limited, as was the case with the 4,000-unit cap on the Formentor VZ5.

Audi plans to discontinue the RS3 in the third quarter of 2027 due to Euro 7 emissions standards. However, the manufacturer is considering potential electrification of the five-cylinder engine or its continued use in markets with less stringent regulations.