Seat Arona, Ibiza, Ateca, Leon and Tarraco plus Cupra Formentor, Born, Leon and Ateca form the core lineup that has propelled Seat SA, the combined entity of Seat and Cupra, to a period of sustained profitability. In 2023, the company posted an operating profit of 625 million euros, a leap from 33 million in 2022, and a margin that stood at 4.4 percentage points. Revenue reached 14,333 million euros, representing 10.4 percent of the Volkswagen Group, and the plan was to build 534,000 vehicles and deliver 602,000 cars, of which 533,608 had already reached customers. These figures mark a high-water point for operating profit since the prior peak in 2019, and they underscore the strong momentum that followed a challenging period.
At an event hosted by Armchair House in Barcelona, Wayne Griffiths and the management team laid out the 2023 financial results for Seat SA. Just a week after the Volkswagen Group disclosed its global numbers, the two Spanish brands threw back the curtain to reveal their robust performance across both commercial and industrial dimensions. With the Martorell factory undergoing a transformative push toward electrification, Seat has signaled a clear moment of positive trajectory for the group.
There are several encouraging indicators supporting a brighter 2024. The arrival of new models such as Cupra Tavascan and Terramar, along with ongoing renovations to Seat and Cupra Leon and Cupra Formentor, suggest renewed optimism. An additional boost is expected from the Ateca, which could benefit from incremental demand, as well as continued confirmation that the Ibiza and Arona lineups will extend beyond 2029.
Cupra Terramar was showcased at the Győr plant in Hungary, illustrating the brand’s expanding influence within the group.
Cupra’s momentum is clear: the brand accounted for 46.2 percent of Seat SA production in 2023, with Cupra sales rising 50.9 percent to 230,700 vehicles worldwide. Seat itself grew by 24 percent to 288,400 vehicles, driving an overall combined increase of 34.6 percent to 519,200 vehicles registered. These gains also bolster the case for Cupra’s expansion into the United States market, as indicated by management.
Seat’s Plan
Strengthening the lineup with refreshed Ibiza, Arona, Leon and Ateca sets the stage for a future where propulsion shifts toward electrification. The possibility of introducing a 100 percent electric model in December appears more likely as Seat weighs its strategic options amid an increasingly electrified landscape.
There is consideration of concluding a collaboration involving a compact electric vehicle priced below 20,000 euros, a project connected to Volkswagen Group and Renault. Prominent figures in the sector, including Josep Maria Recasens, head of strategy at Renault and president of the rhombus company in Spain, have been linked to these talks. As Volkswagen advances the ID1 and Renault pursues its under-20,000-euro electric vehicle concept with a potential new Twingo, the real outcome remains to be announced.
The Seat model set to celebrate its 40th anniversary in 2024 will retain the Ibiza name as Seat’s first fully electric car. Although the company has previously hinted at an all-electric path, the current plan suggests a 2027 timeline for full electrification on some fronts, with official confirmation still pending. The broader strategy points to a staged transition rather than an abrupt overhaul.
Despite the electric pledge, progress has been more measured in some markets. The shift toward 100 percent electric in Southern Europe, including Spain where the electric share remains modest, has prompted Seat to extend the life of traditional combustion models in its lineup. The Terramar from Cupra, produced at Győr, is offered as a plug-in hybrid option, underscoring a blended approach during the transition.
There is also a practical plan to strengthen the lineup with the Ibiza and Arona continuing to offer gasoline variants, and the Ateca possibly undergoing a strategic repositioning within Cupra. Cupra Formentor is anticipated to move toward electrification as well, and the company is considering adding a larger SUV to the range to bolster appeal.
Another pillar of Seat’s strategy lies in SeatMO, the electric and urban mobility division. The Barcelona-based joint motorcycle project was halted this year, but the brand continues to support the 125 and 50 electric motorcycles produced locally. The upcoming nanocar is expected to appear in the Seat 4Wheels catalog, built on the Silence S04 platform.