SEAT, the Spanish brand of the Volkswagen Group, plans to launch an entry-level urban electric car, while confirming its commitment to continuing automobile production.
Despite speculation about its future as a car manufacturer, SEAT has reaffirmed its commitment to continuing to produce cars. Marcus Gossen, the boss of SEAT and CUPRA in the United Kingdom, has confirmed that the Spanish brand plans to launch an affordable urban electric car, paired with the future Volkswagen ID 1.
Less than €20,000
SEAT’s new electric car, which should cost less than €20,000, will be based on a specific platform with high added value and will forgo large infotainment screens and long ranges to maintain an affordable price. This urban electric car will likely replace the Mii (similar to the Volkswagen e-Up! that we tested recently), which has been withdrawn from the market. However, it remains to be seen when it will arrive! The latest announcements indeed suggest that the Volkswagen ID.1 will not arrive before 2026-2027, which will leave room for the Renault R5 E-Tech and Citroën ë-C3.
Thomas Schäfer, president of SEAT, previously suggested that SEAT could transform into a mobility solutions brand, while CUPRA would focus on automobile production. However, the Volkswagen boss, who is also responsible for SEAT/CUPRA and Skoda, has confirmed that the group is developing a small, affordable electric car that will be sold for less than €20,000. At the same time, he specified that this technology will have to be shared with other brands, for profitability reasons. SEAT seems an obvious choice. SEAT’s annual press conference in March could be the perfect time to find out more.
Double-digit growth
Despite rumors about the disappearance of SEAT, the brand recorded good growth in 2023 with 288,400 cars sold, an increase of 24% compared to 2002. A figure which should not, however, make us forget a drop in sales of 47.5% compared to registrations before the pandemic.
At the start of 2023, SEAT was faced with a stock shortage of parts
essential in the manufacturing of its vehicles and had made the strategic decision to give priority to CUPRA models, which are more profitable in 2022. Marcus Gossen is now counting on a 50/50 sales mix between CUPRA and SEAT. The Spanish manufacturer does not currently have any electric vehicles in its pipeline other than the replacement for the Mii and is focusing on its gasoline and plug-in hybrid range, which includes the Ibiza, Leon, Arona, Ateca and Tarraco.
For its part, CUPRA will add the Tavascan EV and the Terramar plug-in hybrid to its range this year.
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