Seat and Cupra post record sales but tariffs and investments decimate profits

Seat SA sold a record number of cars last year for its best annual revenues yet - but posted just a €1 million profit as trade tariffs, heavy EV investment programmes and intense market competition decimated its margins. "Our results are not where we want them to be," admitted CEO Markus Haupt as he presented the Spanish company's financial performance figures for 2025, "but they are also not unexpected." The Seat and Cupra brands sold 657,400 cars last year – more than ever before – and generated record revenues of €15.3bn, but that "record volume did not translate into earning growth", explained finance boss Patrick Mayer, because of the huge costs that Martorell had to grapple with last year. "Last year was indeed challenging in many ways," said Mayer, adding that there was "no denying profit is not where we hoped it would be". Of the various headwinds that Seat SA had to face into last year, one of the most cost-intensive was the EU's imposition of a 20.7% import tariff on the Chinese-built Cupra Tavascan crossover - its flagship electric car and a crucial component of its strategy to dramatically increase its EV sales mix. "This car is key in our electrification strategy, and the weight of the tariffs can be seen in our results," said Mayer, the company having "deliberately chosen to absorb" the levy rather than pass it on to customers - at a significant cost of several thousand euros on each sale. Cupra sold around 36,000 Tavascans last year, although 6432 of those were in the UK, where the crossover is subject to a lower, 10% import fee. As of last month, however, the Tavascan is no longer subject to this 'countervailing duty', the EU having granted it a market-first exemption from the blanket tariff structure imposed on Chinese-built EVs to protect local manufacturers - significantly boosting its profitability potential in 2026. The Tavascan will also soon follow in the footsteps of the smaller Cupra Born hatchback in being updated with a new look and a revamped interior, Haupt confirmed. Further impacting profitability last year was a substantial €1.3 billion investment bill relating to new model development, the construction of a new EV battery factory and various model update programmes. Mayer said 2025 was "a peak year" in an investment cycle that has totalled €6.2bn over the past six years – chiefly on the development of the Volkswagen Group's new urban EV family, which comprises the Skoda Epiq, Volkswagen ID Polo, Volkswagen ID Cross and Cupra Raval, which will be revealed on 9 April. Cupra is pitching the Raval as a central component of its plan to bounce back from 2025's suboptimal performance. Haupt said it arrives at "the perfect time" to set the brand on a path to dramatically increasing its market share over the coming years. Across its Seat and Cupra brands, Seat SA currently has a market share of 2.3% in Europe. It plans to claim a 3% share globally by 2030, by which point it aims to achieve a 6% return on sales.

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Seat and Cupra post record sales but tariffs and investments decimate profits

Spanish siblings sold 657k cars but claimed a margin of just €1m in light of huge trade costs and capex

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Seat and Cupra post record sales but tariffs and investments decimate profits

Spanish siblings sold 657k cars but claimed a margin of just €1m in light of huge trade costs and capex

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