Official statement from SEAT, S.A.: A new era begins with SEAT and CUPRA in the portfolio, along with a very different future for them

The European automotive industry is undergoing a profound transformation driven by the advancement of electrification, increasingly strict regulations on CO₂ emissions, and greater competition. Added to this is the pressure on manufacturers’ cost structures.

Over the past 12 months, these factors have intensified. Regulatory requirements and associated penalties are having a growing impact in some markets, while the transition to electric mobility is progressing at different speeds across Europe.

What decisions has the Volkswagen Group made?

This scenario forces manufacturers to continuously review their strategies, investment priorities, and business models. Volkswagen Group and SEAT S.A. are also undergoing this adaptation process.

"SEAT S.A. has an important role to play in the future of the Volkswagen Group. The company has demonstrated its ability to transform, with a solid industrial base in Martorell and the unstoppable growth of CUPRA. I am very proud of what the SEAT and CUPRA teams have achieved in recent years, and this gives me great confidence for the future. We are committed to building on this foundation and creating conditions for SEAT S.A. and CUPRA to continue growing and contributing to the success of the Group. At the same time, we must remain flexible and adapt our brand and product strategies to regulations, market conditions, and what our customers demand," said Oliver Blume, CEO of the Volkswagen Group.

SEAT has a defined product roadmap for the coming years and will continue with the already planned launches and updates. These include mild-hybrid versions of the Ibiza and Arona, which are scheduled to arrive in 2027.

Beyond the current product cycle, however, the brand’s future remains under evaluation. Stricter regulations, the costs associated with electrification, and the investment required to develop a new generation of electric models make it more complicated to decide on further investments in SEAT.

Therefore, various scenarios beyond 2030 remain open. The brand’s continuity will be assessed based on regulatory changes, customer demand, and market conditions. No decision has been made yet on this matter.

Maintaining this flexibility is particularly important in an industry whose regulatory, technological, and competitive landscape continues to change rapidly. Under any circumstances, SEAT S.A. and its dealership network will continue to support SEAT customers and fulfill the commitments made to them.

The future of the SEAT brand must be distinct from that of SEAT S.A., the company that encompasses both SEAT and CUPRA. The company approaches this new phase with the aim of establishing itself as a major automotive force within the Volkswagen Group, by combining two established brands, industrial capacity, and flexibility to respond to changes in demand and the market.

In this transformation, CUPRA maintains its role as the main driver of growth. At the same time, SEAT S.A. is expanding its industrial responsibilities within the Volkswagen Group, with expectations that employment could increase in the coming years.

"SEAT S.A. is entering a new phase from a strong position. We are becoming an automotive powerhouse, with an increasingly important industrial role within the Volkswagen Group and CUPRA reaching its full potential. This is a story of transformation, with CUPRA serving as the key driver of our future growth and profitability. Meanwhile, our industrial responsibilities are growing, along with employment. We are building a solid future for SEAT S.A. and for Martorell," says Markus Haupt, CEO of SEAT & CUPRA.

The multi-brand approach is a crucial part of this transformation. SEAT S.A. leads the industrialization of the MEB21 platform and the production in Martorell of the urban electric vehicle lineup. Meanwhile, it retains the capacity to manufacture internal combustion engines, hybrid, and fully electric vehicles—a combination that allows production to adapt to the evolving needs of different markets and customers.

This process is backed by the commitment announced in 2022 by Volkswagen Group and SEAT S.A., along with their partners at Future: Fast Forward, to invest 10 billion euros aimed at accelerating electrification in Spain.

This commitment is being realized through the transformation of Martorell and the production of the urban electric vehicle lineup, reinforcing Volkswagen Group’s long-term investment in SEAT S.A., Catalonia, and Spain.

The company also aims to secure an additional production platform at Martorell to strengthen its industrial footprint and create new future opportunities.

"For us, the priority has always been clear: ensuring the company’s future and quality employment for future generations. SEAT S.A. is not just one brand. It is a company that includes SEAT and CUPRA, a strategic industrial footprint, and an increasingly important role within the Volkswagen Group. Transformation is never easy, but if it brings investment, more responsibility, and growth to Martorell, it can also create new opportunities for our people. We will continue to work together to ensure that SEAT S.A. has a solid industrial and employment future," explains Matías Carnero, president of SEAT S.A.’s Intercenters Committee and member of the Supervisory Board of Volkswagen AG.

Eight years ago, SEAT S.A. decided to create CUPRA as an independent brand. Since its launch in 2018, the brand has become a key part of the company’s transformation and its main source of growth.

CUPRA has delivered over a million vehicles since then, ranked among the fastest-growing automotive brands in Europe, and built a lineup of eight models launched over eight years.

By 2030, the goal is to fully realize the brand’s potential. CUPRA aims to achieve a 3% market share in Europe by updating its product lineup and expanding internationally further.

The next step is scheduled for the third quarter of 2027, with CUPRA entering the Middle East. The company is also continuing to explore opportunities in other strategic global markets, including its long-term ambition to enter the United States.

CUPRA’s development has changed SEAT S.A.’s profile eight years after its creation. The company now has a brand with an increasingly strong position in Europe, greater international potential, and a more significant contribution to its future profitability and growth.

The automotive industry’s landscape after 2030, however, is still not defined. Regulations, customer demand, and high levels of competition will continue to shape the market’s evolution.

"SEAT S.A. is preparing for these various scenarios from a strong position: with a transformed industrial base, an increasingly important role within the Volkswagen Group, greater growth potential for CUPRA in Europe and internationally, and the flexibility needed to adapt our brand strategy as the market evolves," concludes Markus Haupt.

The next phase of SEAT S.A.’s transformation will therefore focus on strengthening its industrial role within the Volkswagen Group and ensuring long-term employment, while CUPRA drives the company’s growth, profitability, and positioning.