Seat’s Future Lies with Cupra: A Shift Towards Electric Mobility

At the recent Munich motor show, Thomas Schäfer, the chairman of Seat, made a significant announcement about the future direction of the company. He confirmed that Seat’s long-term future lies away from being a mainstream car maker and that role will instead be taken by Cupra, the performance arm of Seat.

While the existing Seat models will continue to be produced in their current lifecycles, the brand will ultimately have a new role in the future. Schäfer stated that the Volkswagen Group, which owns Seat, will find a different role for the Seat brand name. This could involve pivoting into other vehicles and mobility solutions, such as e-scooters, as Seat has already started to do with the Seat Mó. Small cars also remain an option.

Schäfer explained that it is prohibitive to invest in both Seat and Cupra as mainstream brands, and the earning potential for Cupra is ultimately far greater. As a result, the Volkswagen Group will be investing strongly in Cupra, ramping up its production and expanding its model range.

Cupra has already made significant strides in establishing itself as a standalone brand. It has moved into making its own bespoke models, starting with the Cupra Formentor and followed by the Cupra Tavascan. The brand has also previewed a new entry-level hatchback called the Cupra Raval and a sports car called the Cupra DarkRebel.

The production version of the Cupra UrbanRebel, named the Raval, is set to go into production in 2025 at Seat’s Martorell factory in Spain. This investment in manufacturing demonstrates the Volkswagen Group’s commitment to Spain, which is further reinforced by its investment in a new €10 billion EV battery factory in Valencia.

Schäfer highlighted that Cupra has been well-received by Spanish customers and is the fastest-growing brand in Europe. He stated that the decision to shift Seat’s role to Cupra had been in motion for a long time, with Cupra’s success cementing the thinking that this was the right move. Despite some debate about reinvigorating Seat, the brand’s history of making losses and Cupra’s greater earning potential ultimately solidified the decision.

Looking ahead, it is possible that the Seat name could be dropped completely from the Leon when it is facelifted in 2024, leaving it solely as the Cupra Leon. The Ibiza is also unlikely to be replaced in its current form when it is phased out. Additionally, Cupra is planning to launch an SUV based on the Audi Q3 in 2024.

In essence, the more profitable and successful Seat models will be absorbed into Cupra, while the new brand will also venture into higher segments with more strikingly designed cars. Cupra is even investigating the possibility of developing a halo sports car based on the Cupra DarkRebel concept.

The shift towards electric mobility is evident in Seat’s future plans. As Cupra takes on a more prominent role, Seat will explore new avenues in the world of mobility solutions. With the Volkswagen Group’s strong investment in Cupra and its commitment to Spain, the future looks promising for both brands.