Seat, the famous Spanish car brand, is facing a serious challenge and may be the first victim of the arrival of cheap Chinese cars in the European market. The Volkswagen Group, which owns Seat, is considering the possibility of stopping production of this brand due to a significant drop in sales.
Why is Seat at Risk?
Volkswagen is cutting costs and reducing the variety of its models to improve its financial reserves. In this context, the future of Seat is currently uncertain, and the company's managers have stated that "the future of Seat beyond the current product cycle is still under evaluation." While Seat has recently celebrated its 75th anniversary, sales of this brand fell to 257,400 cars last year, representing a 17 percent decline compared to the previous year.
Intense Competition with Chinese Brands
In contrast, Chinese brands have become serious competitors in key markets, including Europe. In the first seven months of 2026, Chinese brands sold more cars in Europe than the previous year. Meanwhile, the market share of Chinese brands in Europe has reached 11.2 percent, and they are expected to produce around 90,000 cars in Europe.
Seat has positioned itself in a weak spot by not producing electric vehicles and having only one electric model (Mii Electric), which was discontinued in 2021. Meanwhile, its sister brand, Cupra, is rapidly advancing and developing electric models, selling 79,700 electric vehicles last year.
Market Outlook and the Future of Seat
Given the increase in tariffs by the European Union on Chinese cars, demand has remained high, and the UK has become the largest market for Chinese brands. In light of these developments, if Seat were to cease production, it would be the first time since the early 2010s that an old car brand disappears.
The Volkswagen Group is also considering plans to reduce costs, including cutting 50,000 jobs and reducing model variety. As the group's sales have sharply declined and the Chinese market has shifted in favor of local brands, the future of Seat faces many uncertainties.
