SEAT will launch an urban EVs in 2025 On March 22nd, 2021, a Spanish automotive manufacturer, SEAT announced that it will launch an urban electric vehicle in 2025. The announcement […]
SEAT will launch an urban EVs in 2025
On March 22nd, 2021, a Spanish automotive manufacturer, SEAT announced that it will launch an urban electric vehicle in 2025. The announcement is relating to another news about SEAT. There are several key highlights in the announcement.
Ambition for electrification
SEAT wants to manufacture electric cars in Spain starting in 2025. Its ambition is to produce more than 500,000 urban electric cars per year in Martorell, Catalonia, Spain. The company shows a clear commitment to the European Commission as well as the Volkswagen Group.
A Spanish automotive maker is planning to transform its Technical Center. It is the only one of its kind in southern Europe and an essential R&D asset for the region. SEAT’s management believe that it is part of their responsibility to electrify Spain. SEAT put Spain on wheels 70 years ago. Now, the company aims to put Spain on electric wheels.
SEAT has the right partners on-board and is ready to invest. This project helps the Spanish automotive industry transform into electrification. However, the support of the Spanish Government and the EU Commission for this cross-sectorial and nation-wide plan is necessary. The Volkswagen Group will be able to take the final decision on its execution.
The CUPRA Tavascan will be a reality. SEAT makes use of MEB platform of the Volkswagen Group and will design and develop in Barcelona. As a result, the CUPRA Tavascan will reach Europe and overseas markets in 2024
For example, Australia is a young market and CUPRA is a young brand. In the country, customers are looking for new brands. Furthermore, there is a high middle-class income and it is a progressive society. Therefore, SEAT expects that CUPRA can be successful in Australia.
Target: CO2 emissions and sales
The big challenge for 2020 was initially the new CO2 emissions target. As a result, the boost of electrified SEAT and CUPRA vehicles started by the end of 2020. In 2021, SEAT launches the CUPRA Formentor e-HYBRID and the CUPRA Born. Thus, the company expects to reach the CO2 emissions targets for 2021.
What’s more, its goal is to increase sales and recover its volumes to pre-COVID levels. In 2021, the company must return to profitability. This is its financial target. Key levers to achieve profitability in 2021 will be an increase in the PHEV mix and the launch of the fully electric CUPRA Born. They will enable the company to achieve its CO2 targets, too. On top of this, SEAT will put its attention on reducing overheads and on revenue management. What’s more, it focuses on the most important markets and channels.
Results in 2020
In 2020, SEAT realized positive results. Earnings before Interests, Taxes, Depreciation and Amortization amounted to 157 million euros with a ratio of 1.8% of sales. This number is an indicator that SEAT’s business is robust despite the bad results in 2020. Thus, it has the foundations to go back to the positive figures of the past years at the same time.
Operating cash flow reached a positive figure, which was 466 million euros in 2020. This figure represents an achievement in the context of the economic and health crisis caused by the pandemic. In addition, it is a cornerstone to realize the ambitious strategic plans. SEAT continues to prepare for the challenges set by the automotive sector’s technological transformation. Therefore, the Spanish automotive manufacturer must maintain the investment momentum carried out over the last years.