SEAT & CUPRA adapts to market shifts and intensified external pressures in Q3

The company’s result was impacted by the growing share of BEV sales, competitive pressure, geopolitical volatility and other external factors.

• The accelerating market shift towards BEV sales during the third quarter confirms the company’s electrification strategy while stressing the need to improve margins on fully electric vehicles
• After first positive contributions from the Performance Program, the operating environment became significantly more challenging during the third quarter, a trend that is expected to persist and reinforces the need to continue cost-control measures
• In response to these challenges, SEAT & CUPRA is advancing its ELEVATE strategy, built around Martorell as an industrial powerhouse and CUPRA’s continued growth

SEAT & CUPRA posted an operating result of €6 million between January and September 2026.  After first positive contributions from its ELEVATE strategy and Performance Program during the first half of the year, the market environment became significantly more demanding during the third quarter. The pace of electrification, growing competitive pressure, rising geopolitical volatility, and regulatory uncertainty in Europe impacted the company’s performance.

“The third quarter has shown how quickly our industry is changing. Market dynamics have intensified significantly in recent months, with growing competitive pressure and a faster-than-expected pace of electrification. While this confirms our electrification strategy, we now need to focus and work on improving our margins for fully electric vehicles to adapt to current customer demand.”
Markus Haupt, CEO of SEAT & CUPRA.

Electrification completely reshaped the market during the third quarter. BEV sales accelerated at a pace that exceeded expectations in key European markets, such as Germany, France and Denmark. Despite confirming the strategic direction taken by the company, this also created significant near-term financial challenges:

• The company needs to achieve margin parity between BEVs and ICE vehicles, while offsetting the decline in sales of more profitable ICE models.
• The successful launch of CUPRA’s updated BEV portfolio in 2026 required significant investment, with launch activities and market entries.
• SEAT & CUPRA is no longer the only Group company exceeding CO₂ targets, reducing planned benefits from internal sales of CO₂ credits.

BEV registrations and market shares according to ACEA.

“Our low profitability and cash generation is seriously threatening our ability to invest in our future. The accelerated pace of electrification stresses the urgent need to quickly improve the cost of our battery-electric vehicles. We will critically reprioritize all planned future investments and must continue to enforce strict cost discipline.”
Patrik Andreas Mayer, Executive Vice-President for Finance and IT at SEAT & CUPRA  

A clear roadmap for SEAT & CUPRA’s future
Against a backdrop of intensified challenges that are expected to persist, SEAT & CUPRA is accelerating the implementation of ELEVATE, its long-term strategy, built around three core pillars: operational excellence, value creation and CUPRA growth. The strategy is already in place and delivered first positive contributions in the first half of the year, supported by the Performance Program. Building on this progress, the company is stepping up cost-control measures and driving further efficiency improvements across the organization.

At the same time, Martorell is strengthening its position as an industrial powerhouse within the Volkswagen Group. Following the launch of the ID. Polo and CUPRA Raval, the focus is now on ramping up production towards full capacity. As SEAT & CUPRA takes on new industrial responsibilities for the Volkswagen Group in Martorell, the company is focused on safeguarding long-term employment at the plant. SEAT & CUPRA will continue pushing to secure an additional platform for Martorell, further strengthening its industrial footprint and creating new opportunities for the future.

“The environment is increasingly challenging, but we know what needs to be done. We have a clear roadmap with ELEVATE, and we are already seeing the first signs of progress. Now is the time to work together, focus on execution and fully deliver on the potential of our strategy. Martorell’s growing industrial role and CUPRA’s continued growth give us confidence in the long-term direction of the company.”
Markus Haupt, CEO of SEAT & CUPRA.

CUPRA represents a key lever within the ELEVATE strategy, supported by its continued growth in Europe and further international expansion. Following another record-breaking nine months with more than 250,000 vehicles delivered, the brand continues to progress towards its ambition of achieving a 3% market share in Europe. The CUPRA Raval is driving this momentum, with more than 51,000 orders between April and September, making it the most successful launch in the brand’s history and CUPRA’s best-selling model since its launch in April. At the same time, CUPRA is planning to enter the Middle East, marking another key step towards becoming a truly global brand.

While the challenging market environment is expected to persist beyond 2026, the company remains focused on delivering on its roadmap. Martorell’s growing role as an industrial powerhouse and CUPRA’s continued growth and global expansion reinforce confidence in the company’s long-term direction and its ability to strengthen its competitiveness in a rapidly evolving market.

ENDS

Change needs drivers and SEAT & CUPRA is steering the future of mobility. As the only company in Spain that designs, develops, manufactures, and markets cars, SEAT & CUPRA is a cornerstone of the nation’s automotive industry and the driving force behind its electrification.  

As the company undertakes the biggest transformation in its 76-year history, SEAT & CUPRA is turning Spain into a European hub for electric vehicles. Through the Future: Fast Forward project, and in collaboration with the Volkswagen Group, PowerCo, and other partners, the company has invested €10 billion into the country’s electrification. The company is also leading the Electric Urban Car project for the Volkswagen Group’s Brand Group Core and is producing 100% electric vehicles, including the CUPRA Raval, at its Martorell plant.

A member of the Volkswagen Group, SEAT & CUPRA sells vehicles under the SEAT and CUPRA brands including the iconic SEAT Ibiza and the company’s bestselling model, the CUPRA Formentor. With over 13,000 professionals and three production centres in Martorell, El Prat de Llobregat, and Barcelona, the company exports over 80% of its vehicles to more than 70 countries. 

For more information, please contact:
Chris Mease, Head of PR and Communications
07586 058302; chris.mease@seatcars.co.uk 

Laura Reeder, PR Manager  
07881 227608; laura.reeder1@seatcars.co.uk  

Holly Williams, Events and Internal Communications Manager
07738 897319; holly.williams@seatcars.co.uk  

Katie Duguid, Press Fleet Manager
07983 537247; katie.duguid@seatcars.co.uk  

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