Cupra: The "Cup Racers" are charging ahead with ice-cold precision
What an ascent: Cupra Germany's Managing Director Bernhard Bauer can be proud of the still young brand, which is growing strongly in contrast to the overall market (and Seat): In 2021, thanks to Cupra, the decline in sales could be limited to 6.5 percent, while the entire German market fell by around ten percent! Accordingly, the market share of Seat and Cupra in 2021 increased by 0.1 to 4.1 percent. Which is significant, considering that Seat once spent 3.0 percent to be visible and present.
By February 2022, with market growth in Germany at 5.7 percent, they increased by 10.2 percent and the market share of the Spanish VW subsidiaries rose to 4.7 percent.
The results look even better for Cupra separately: In 2021, more than 30,000 units were sold worldwide, a 105 percent increase. Bernhard Bauer was delighted: "I have often predicted that Cupra would come, now the brand is fully here!" In Germany, they achieved a 1.2 percent market share, with a rising trend. In the first two months of 2022 alone, they grew by 60 percent with around 5,500 units and have many orders in the pipeline. The Cupra market share grew to 1.4 percent. Meanwhile, the Formentor is the bestseller among all Cupra and Seat products and, in absolute terms, the most leased model in Germany and the number one in private registrations in the compact SUV segment. That's why the program will be expanded in 2024 to include the electric SUV Tavascan and in 2025 to include the compact electric car “Urban Rebel.”
In that respect, the strategy to spin off Cupra as a separate brand from Seat has succeeded. But where there is light, there is always some shadow: because after the parent company VW is already having stress with Skoda, because the Czechs are historically actually "premium" - even if they are never - absolutely never allowed to say that - the Formentor may also be considered the spicier Tiguan and the Born the more exciting ID.3 - and both are more likely to be above than below VW in terms of image and price. So what perspective does the German parent company have when all the subsidiaries grow over its head? And what will become of Seat? At the moment, there is nothing particularly exciting in the pipeline here. The gatekeeper at the toll road to the event location summed it up when we wanted to go to the "Seat event": "Seat does not exist anymore, what is the brand called now?" Cupra! "Okay, you may pass."
What does that mean?
Cupra is currently enjoying massive tailwinds and who can blame the Spaniards for taking advantage of that? They offer more emotions than the parent company at still affordable rates, a significantly cooler image with better margins than Seat. But that is precisely the problem for the somewhat bland parent company from Barcelona and the main VW brand: The youngest subsidiary is developing excellently - partly at the expense of the parent group. This needs to be counteracted in the medium term, before Seat becomes Lancia and VW, apart from the ID.5, ID. Buzz and Amarok (from Ford) only has the dull(est) group models in the program.
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