Cupra is experiencing a surge in electric cars, yet its profits are under strain

Image: Cupra

The Cupra Raval has had a successful market launch thanks to rising demand for electric cars in Europe. Sven Schuwirth, head of sales for Seat and Cupra, recently stated according to Automotive News that 51,000 orders have already been placed for this sporty compact car. The goal for 2027 is to sell over 100,000 units, which would make this model series the best-selling of Seat’s sister brand in Europe.

In France, 80 percent of Cupra orders this year are for electric vehicles. Alongside the Raval, the compact car Born and the compact SUV Tavascan are also sold there. In Germany, the brand’s largest market, fully electric models account for over 70 percent of orders. In some markets such as the Netherlands, electric vehicles make up almost all Cupra orders. In Germany, the share of electric models rose from 25 percent at the beginning of 2026 to around 70 percent.

This shift poses challenges to profitability, as the profit margins on electric vehicles are lower than those of internal combustion engine cars. Cupra benefits from demand for the more expensive Raval variant, which was developed in collaboration with tuning specialist ABT. This version starts at 36,770 euros and accounts for one-third of Raval orders in Germany, according to the report.

The pace of electrification could influence the future of Seat’s core brand. CEO Markus Haupt told Automotive News that no final decision has been made yet. If the EU continues to push for the phasing out of internal combustion engines, it is unclear whether customers will still want such models in 2031 or 2032. “If the answer is ‘no,’ we should have an electric Seat, but since cost parity isn’t yet achieved, a fully electric Seat wouldn’t make sense at the moment,” said Haupt.

Seat’s future after 2030 is uncertain amid the comprehensive restructuring underway at Volkswagen Group. According to management, Seat will continue developing announced products such as mild-hybrid versions of the Ibiza and Arona for 2027. However, the brand’s future direction remains under consideration following the current product cycle. A phased withdrawal of the Seat brand has been mentioned as an option, but a final decision has not yet been made.

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About the author

Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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