SEAT faces an uncertain future under the umbrella of Volkswagen

The Spanish brand SEAT has for decades been a benchmark among buyers in Spain and even across Europe as a whole. But it has reached a point where its results are being affected and sales of its models are falling across the continent. Specifically, in July of this year, sales fell by 45% across Europe, while in August the decline was 42% compared with 2021.

These figures add to the poor results obtained over the last two years and put the continuity of the brand at risk. The problem is compounded because SEAT’s models are in the same segment as those of Skoda. This means internal competition between brands of the same company, so at Volkswagen they are not very satisfied with the results.

The future of SEAT, up in the air

Another of the factors that could put the Spanish brand at risk is the success that CUPRA is having, the brand that has split off from SEAT to become a more successful option than SEAT itself. It is the brand for younger, non-conformist buyers, who are swapping traditional SEATs for these higher-performance versions.

So doubts hover over the Spanish brand. Does it have enough standing to remain a viable brand within the Volkswagen Group? Apparently, and always according to the statements made by the CEO of Volkswagen, SEAT could remain valid until 2029, although its future beyond that is not clear at all.

For the moment, SEAT is preparing new versions of the León for 2023, as well as new variants of the Arona and Ibiza models. These two will incorporate mild-hybrid technology in 2024, so the brand still has room to manoeuvre.

The key date will be 2029, when the decision could be taken to turn SEAT into a mobility brand, much like what SEAT Mó is today. At the very least, what can almost be assured is that SEAT’s catalogue will be considerably reduced in favour of an increase in CUPRA models.

Will we see SEAT disappear as we currently know it? It is too early to say, but it seems that it is a redundant part of the Volkswagen machinery and that it may undergo serious changes.