Introduction to SEAT's Decision

SEAT, the Spanish automobile manufacturer, has announced plans to update its Ibiza and Arona models this year. This move aims to give the models the necessary updates to continue production until the end of the decade. The decision comes as the company delays its plans for electrification, citing concerns over profitability.

According to SEAT and Cupra CEO Wayne Griffiths, the current market conditions make it challenging to produce a profitable electric vehicle (EV) at a price point of 20,000 euros. As a result, the company will focus on refreshing its existing petrol-powered models, including visual updates and tech enhancements, while ensuring compliance with upcoming legislative requirements.

Electrification Plans

SEAT's vice president of research and development, Werner Tietz, confirmed that the company has reduced its development process to three years, allowing for more flexibility in decision-making. However, the company's ambition remains to find a technical solution that makes it viable to enter the electric market. Tietz emphasized the need for a significant reduction in the cost of electric vehicle technology to make it profitable for SEAT.

Griffiths also highlighted the slow uptake of electric vehicles in Europe, with EVs accounting for only 13% of new car sales last year, compared to the expected 25%. In SEAT's home market of Spain, the figure was even lower, at just 5%. Griffiths called for governments to take action to stimulate EV sales and support the industry's transition to electrification.