Analysis-Volkswagen’s Seat on the brink as Chinese rivals gain ground

Volkswagen's Seat faces potential extinction as Chinese carmakers gain market share, marking the first major brand demise since the early 2010s. The Spanish brand, founded in 1950, has not introduced a new model since 2020, a worrying trend in an industry reliant on fresh products. Seat accounted for less than 3% of Volkswagen's global deliveries in 2025, while its sister brand Cupra, launched in 2018, now outperforms Seat in sales.

Cupra's success with three fully electric models, including the new Raval, has prompted Volkswagen to focus resources on Cupra, phasing out Seat's combustion-engine models. Union leader Matias Carnero fears job losses if Seat disappears, highlighting the gravity of the situation. Industry analysts say Volkswagen's decision to streamline the company by concentrating on its strongest brands underscores the trend of consolidation seen across the automotive sector.

While Chinese manufacturers like BYD, SAIC Motor, and Geely are accelerating the decline of weaker brands through aggressive pricing and electric vehicle investments, the industry's upheaval is also affecting Chinese players. Analysts predict only 15 of the 129 EV brands in China will remain viable by 2030, signaling a global reordering of the automotive landscape.