Cupra’s dream of launching in the US just came a little closer with the news that the VW-owned Spanish brand has opened first-stage talks with the Penske dealer group.

Though no concrete deal has been announced, the fact that Cupra is even talking about the two companies getting around a table indicates discussions are probably more advanced than it’s letting on. No detailed timeframe was given for Cupra’s US debut but the automaker reiterated its previous stance, saying it was targeting an American debut by the end of the decade.

Related: It’s Official, Cupra Coming To US With 2 Electric Crossovers

But that debut will see the brand appear “in key states aligned with the brand,” rather than nationwide. Penske Automotive already has a solid relationship with the Volkswagen Group so it makes for an obvious choice to help Cupra get a foothold in a market where 99 percent of drivers have never heard of it.

“Cupra’s ambition is to be a truly global brand and expanding into the United States represents one of the greatest milestones on our journey,” said the automaker’s CEO, Wayne Griffiths. “We have great respect for the U.S. market, recognizing that a strong distribution and retail strategy is essential for success.”

Cupra is expected to bring combustion, plug-in hybrid, and fully electric models to North America, though the cars themselves will be a generation on from the vehicles currently sold in European and Australian dealerships.

In March of this year, Griffiths confirmed that Cupra would kick off its American adventure with an electric version of the next Formentor crossover and also a bigger electric crossover SUV, that second model slated for production at VW facilities “in the North American region, including Mexico.”

There was no mention of non-EV powertrains back then, but it’s no surprise that Cupra is now talking about models with ICE elements given the American public’s disinterest in pure battery cars so far. Building an SUV in Mexico also looks potentially problematic now that Donald Trump  – who has vowed to apply high tariffs on Mexico-built cars – won the election.

Update 10/13: Our spies have captured another prototype of the Cupra Raval out on the streets, offering us an even closer look at the upcoming EV’s details.Additionally, we’ve gathered fresh information about the Raval’s top-spec performance variant, which could share its powertrain architecture with the VW ID GTI.

Cupra makes some of the best cars in the entire VW Group lineup, cars that are often more luxurious, faster, and more interesting to look at than their VW-badged cousins. And the little Cupra Raval EV, seen here in prototype form for the first time, wants to continue that trend.

The Raval is based on the same MEB Short platform VW will use for its ID.2, and Skoda will also slide under its own small EV. However, it’s Cupra that gets first dibs on the latest tech, with the Raval scheduled for a 2025 market launch, a few months ahead of the VW-badged ID.2, putting it slightly ahead of the curve in the EV race.

More: Here’s What We Know About The 2025 Cupra Raval

Even with this prototype’s busy disguise in place, it’s still possible to make out the arresting shapes we were first introduced to on the motorsport-influenced UrbanRebel concept in 2021. The design was later refined for a more production-ready concept of the same name in 2022, later renamed Raval.

Photos Baldauf

The triangular headlights and similarly-shaped air intakes below them, the large lower grille, and the almost sports car-like slope to the hood are visible here, as is the concave panel on the hatch below the rear window and a small diffuser panel. Not so clear from these pictures, but seen previously in official images, is the way the bodywork twists between the front and rear wheels, giving a pinched-waist effect and making the Raval look far more dynamic than the ID.2.

Powertrain Options

Unlike current MEB-based VW products like the ID.3 and ID.4 whose single-motor variants place their powertrain at the back, the MEB Short cars have a more traditional front-engine, front-wheel drive layout. Cupra talks about a base model having the same 223 hp (166 kW / 226 PS) as VW’s ID.2 concept and being able to rip to 62 mph (100 km/h) in 6.9 seconds. We understand Cupra will serve up 38 and 56 kWh battery options, the bigger one sufficient for a 273-mile (440 km) range.

Cupra is also reportedly working on a hotter, performance-focused version of the Raval, which will likely share its powertrain components with the upcoming VW ID GTI, expected in 2026. In concept form, the GTI showcased a dual-motor setup capable of 340 horsepower (250 kW), with an overboost function pushing it to a wild 435 hp (320 kW), though it’s unlikely the production models will retain such extreme figures.

Instead, the performance Raval could see power hover close to the 300 hp mark, potentially allowing it to sprint from 0 to 62 mph (100 km/h) in closer to 5 seconds. Additionally, this sportier version could come equipped with enhanced suspension tuning and larger brakes, providing the handling and stopping power needed to match its increased performance. This would make the performance Raval not just a stylish urban EV, but also a legitimate competitor among hot hatches in its class.

Pricing and Availability

Expected to be priced at around €25,000 ($28k), the Raval will be manufactured in Spain and marketed primarily in Europe, along with select other regions. However, it won’t be part of Cupra’s expansion into the U.S., as the brand plans to focus on SUVs and crossovers for its American lineup.

Images: SH Proshots