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A discount close to $30,000 in some states to clear old stock in the wake of a tax break ending has allowed VW-owned Cupra to undercut China's BYD and MG.
Cupra has dropped the price of its Formentor plug-in hybrid (PHEV) by up to $27,950 to clear 10 months' worth of stock in the four to seven months remaining until the arrival of an updated model.
It follows a 70 per cent sales slump in the months after a lucrative Fringe Benefits Tax (FBT) exemption – which cut about a third off the price of a PHEV purchased through a novated lease – ended earlier this year.
The soon-to-be-updated Formentor VZe PHEV is now available for $43,040 drive-away nationwide, a reduction of $24,950 to $27,950 compared to its regular prices of $67,990 to $70,990, depending on the state of registration.
It makes the Cupra cheaper than a BYD Sealion 6 PHEV from China – currently $44,210 to $44,400 drive-away on special – and one of the most affordable new plug-in hybrids in the country.
Cupra markets the special offer as a "response" to "support customers" after the end of the FBT exemption on April 1, since which sales have slumped by 70 per cent year-on-year.
At its current sales rate – an average of 12.6 cars a month since April – Cupra would need close to three years to clear the 434 vehicles still listed on stock on its website.
In the same period a year earlier – April to August 2024 inclusive – Cupra reported an average of 43 monthly Formentor VZe sales, which would give it 10 months to clear stock.
The facelifted Formentor VZe (below) is due in the first quarter of 2026 (January to March) – four to seven months away – with a circa-100km claimed electric driving range from a new 1.5-litre turbo-petrol plug-in hybrid and 19.7kWh battery.
It is up from 50km in the current model, which uses an older 1.4-litre turbo engine, electric motor and 10.9kWh battery to produce 180kW/400Nm.
Prices of the 2026 Formentor yet to be revealed, but it remains to be seen if it costs less than the RRP of the current Formentor – before discounts – to help drive sales.
Standard features in the outgoing model – plated as a Model Year 2024 vehicle – include 19-inch alloy wheels, LED headlights, a 12-inch touchscreen with Apple CarPlay and Android Auto, wireless phone charging, and tri-zone climate control.
The Leather and Camera package adds nappa leather upholstery, a power-adjustable driver's seat, heated front seats, and a 360-degree camera.
Cupra Formentor plug-in hybrid sales over time
Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family. Highly Commended - Young Writer of the Year 2024 (Under 30) Rising Star Journalist, 2024 Winner Scoop of The Year - 2024 Winner
