Asger Risom
European Union tariffs on Chinese-built electric cars have devastated Seat’s profits, with the Cupra Tavascan at the centre of the impact. The brand’s operating profit collapsed in the first half of 2025, even as electric sales doubled.
European Union tariffs on Chinese-built electric cars have devastated Seat’s profits, with the Cupra Tavascan at the centre of the impact. The brand’s operating profit collapsed in the first half of 2025, even as electric sales doubled.
Seat’s Profit Collapse
Seat’s operating profit plummeted to just €38 million in the first half of 2025, down from €406 million a year earlier, largely due to tariffs on the Cupra Tavascan.
Heavy Tariffs on Tavascan
The Cupra Tavascan, manufactured in Hefei, China, is subject to a 20.7% EU tariff in addition to a 10% general import tax, severely undermining its profitability.
Cupra EV Sales Still Rising
Despite the financial hit, Cupra’s electric sales doubled in the first six months of the year to 37,600 units, showing strong demand for the brand’s EV lineup.
Volkswagen Group Also Feels the Pain
Volkswagen, Seat’s parent company, reported a 36% drop in net profit, with U.S. tariffs on European-built cars costing the group €1.3 billion in the first half of 2025.
Sales and Deliveries Decline
Seat’s revenue fell 2% to €7.6 billion, while vehicle deliveries dropped 7% to 322,000 units compared to the same period last year.
Margin Hit Hard
Seat’s overall operating margin shrank to just 0.5%, with the company selling the Cupra Tavascan at a loss due to the combined impact of tariffs and rising material costs.
Negotiations With the EU
Seat is in talks with the European Commission to find a solution, which could include quotas or fixed pricing to avoid accusations of dumping.
Industry-Wide Challenges
Volkswagen and other European automakers are struggling with high tariffs, weak demand in key markets, and slow EV adoption, further straining their profitability.
