Axe hangs over SEAT as VW Group bets on Cupra
The Spanish brand, famous for the Ibiza supermini and founding the sporty Cupra badge, could be “gradually phased out” after 2030
More than five years since the last all-new model from SEAT, Volkswagen Group has announced the Spanish brand could undergo a “gradual phase-out” after 2030.
In a statement published alongside the sign-off of its new Future Plan 2030, VW admitted that: “increasingly demanding regulations, the economics of electrification and the investment required to develop a new generation of models make the decision for further investment in the SEAT brand increasingly challenging”. However, the automotive giant stressed that “no final decision has been taken”.
The last all-new model built for the SEAT brand was the current-generation Leon family hatchback, which entered the market all the way back in 2020. Since then, minor updates have not been anywhere near enough to maintain interest in the brand, with Volkswagen Group instead hedging its bets on the sportier and more aspirational Cupra brand, which originated as a spin-off of SEAT.
So far this year, SEAT has registered just under 10,500 cars in the UK – less than a fifth of VW Group’s other budget brand, Skoda. This marks an almost 30 per cent decline year-on-year, signalling British buyers’ dwindling interest in the SEAT name – despite mildly updated versions of the Arona SUV and Ibiza hatchback coming in 2027.
Marcus Haupt, the CEO of SEAT, hinted that the brand would instead adopt an “industrial role” in Volkswagen Group’s future: “This is a story of transformation, with CUPRA as a key driver of our future growth and profitability,” Haupt said. “At the same time, our industrial responsibilities are growing and, with them, employment. We are building a strong future for SEAT S.A. and for Martorell.”
Such a reference to Martorell, the province in Spain where VW Group currently builds SEAT and Cupra models and employs over 10,000 people, suggests production capacity could shift to focus more on Cupra. Volkswagen has already been in talks with Chinese brands about utilising its European production space before, so it’s not impossible that a deal could be signed, similar to the one struck by Nissan and Chery earlier this year in the UK.
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