Volkswagen Group is reportedly preparing to phase out the SEAT automotive brand by the end of 2029, with Cupra set to absorb parts of its product portfolio, sales organization and resources. The proposal, reported by WirtschaftsWoche, would leave Cupra as Volkswagen’s primary Spanish brand while preserving customer support and existing contractual commitments.
The German publication says the plan is outlined in a confidential document for Volkswagen’s Supervisory Board that had already been approved by Group management. SEAT has reportedly also been removed from Volkswagen’s strategic vision for 2030. Volkswagen has not confirmed the decision publicly, saying it does not comment on internal documents before they have been discussed and approved by the relevant bodies.
Cost reduction and a simpler structure across Volkswagen’s volume brands — Volkswagen, Skoda, SEAT and Cupra — are said to be behind the move. Maintaining SEAT in its current form would require further investment, according to the report, while Volkswagen sees an opportunity to concentrate those resources on Cupra. The long-term target for Cupra is annual sales of 500,000 to 600,000 vehicles.
The reported phase-out comes despite record 2025 results for SEAT SA, the company operating both SEAT and Cupra. Their combined sales reached 586,300 vehicles, up 5.1% year over year, while revenue totaled €15.3 billion and operating profit reached €633 million. Growth was driven chiefly by Cupra, whose sales rose 33%, as SEAT-branded vehicle sales fell 17%.
SEAT’s Ibiza remained the brand’s top-selling model with 94,800 deliveries in 2025, followed by the Arona at 72,400 units. Founded in 1950 as Sociedad Española de Automóviles de Turismo, SEAT introduced its first car, the SEAT 1400, in 1953 through a collaboration with Fiat. Volkswagen became its majority shareholder in 1986, and the brand later expanded across Europe with models including the Ibiza, Leon, Toledo, Ateca, Arona and Tarraco.
Even if the plan proceeds, it would not mean the disappearance of SEAT SA or its Martorell factory. Instead, Volkswagen’s strategy appears focused on turning Cupra into a larger electrified-vehicle player. The key outstanding question is whether the reported plan will receive the formal approvals Volkswagen says are still required.
