SEAT and Cupra - the two brands that make up the Spanish part of the Volkswagen Group empire - have scored some big wins in 2025, including the highest turnover in the joint companies history, but there's also and admission that last year was a rough ride, with plenty of headwinds from one-off costs associated with the EV transition, and EU tariffs hitting the Tavascan electric SUV, which is made in China.
So what happens now for SEAT and Cupra?
Well, the Spanish brands are certainly not moping about a tough 2025. Instead, they're setting out to make 2026 a much better year, starting with the imminent launch of the new Raval compact electric crossover, which is promising an affordable price tag, fun handling, and up to 450km on one charge. (Click here to read our full pre-production prototype drive.)
"2025 was a year that challenged us and pushed us forward. Our entire industry is suffering the consequences of an unstable economic, technological and geopolitical context, so these results are not a surprise to us. This is the price of our full commitment to electrification as we increase our efforts to make Spain a hub for electromobility and to strengthen Europe's industrial future. Transformation doesn't come without a cost, but now is the moment to push forward with confidence and optimism. We are staying strong, delivering what we promised and driving competitiveness in our sector,” said Markus Haupt, CEO of SEAT and Cupra.
Were things really that bad in 2025?
It depends on how you look at it. The turnover figure - €15.3 billion - was the biggest in SEAT and Cupra's history, and the two companies are clearly doing something right as they jointly delivered 586,300 new cars, a 5.1 per cent rise on 2024's numbers.
That rise in sales included major growth in plug-in hybrids (sales up by 62.9 per cent) and fully-electric cars (up by 65.9 per cent).
Those much-discussed headwinds and one-off costs meant that SEAT and Cupra's operating profit was a slim €1 million, but a profit is a profit, and that does include a €1.3 billion upgrade investment in the vast Martorell factory in Barcelona.
What's happening in 2026?
First off, 2026 is going to be 'The Year Of The Raval' as the all-important new electric car comes to the market. Cupra is celebrating its 8th birthday, and it's already sold one million new cars in that time. The Raval should underline Cupra's commitment to electric power, and also open the brand up to a new audience. The Raval will also be joined by a heavily updated Born electric hatchback, which gets styling changes, a new cabin layout, and slightly more range. Both will be critical to Cupra's plan to achieve a total three per cent European market share - a landmark figure that the brand has already hit in Germany and Denmark.
While all that's happening, there will be cost-cutting, and a new 'governance model' for the VW Group 'Core Brand' group, which includes VW itself alongside SEAT, Cupra, and Skoda. The plan is to grow profit margins to six per cent by 2030. SEAT and Cupra will also be given the primary responsibility for developing the MEB21 electric car platform, which is already in use in the Raval, the VW ID. Polo and ID. Cross, and the Skoda Epiq, and which will form a key part of the VW Group's electrification strategy.