Cupra is burning cash but says help is on the way in 2026 as Raval, Born and Tavascan updates arrive

Cupra on the present time reported that its working profit collapsed to lawful 1,000,000 euros ($1.6 million) in 2025 from 633 million euros ($1 billion) in 2024, as the Spanish arm of the Volkswagen Crew invested heavily to rework its Martorell manufacturing plant to maintain fully electrical cars.

“Let’s be optimistic – our results are now not the build we desire them to be,” Cupra chief government officer Markus Haupt educated media including Chasing Autos.

“Nonetheless as well they are not unexpected. They replicate precisely the stay result we’re in – an funding section. This is the price of main electrification, but additionally of a aggressive market ambiance and an unstable geopolitical context.”

Haupt, accompanied by government vice president for finance Patrik Mayer, said high product prices, import tasks, aggressive strain in EV gross sales in Europe and other markets and expansive capital expenditure on plant upgrades conspired to consume away almost all profit final twelve months.

Find cashflow at Cupra used to be recorded at detrimental 431 million euros (detrimental $701 million) as the logo splashed 1.3 billion euros ($2.12 billion) in capital expenditure and vehicle research and pattern in barely one twelve months.

Cupra bosses exclaim 2025 used to be scheduled to be the most costly twelve months for the company, with the results chalked as much as a compulsory transition length a ways from constructing combustion autos at Seat/Cupra vegetation in Spain to adding EV production traces plus a expansive unusual battery plant located on build of dwelling.

It’s a topic of the rubber hitting the avenue for Cupra, which lobbied onerous – and got – approval inside Volkswagen Crew to attach out the conglomerate’s cheap EV platform, dubbed MEB21.

The first MEB21 vehicle to to be launched will doubtless be the 4000mm-long Cupra Raval hatchback, which is determined to be priced from 26,000 euros ($42,000) when it is miles launched mid-manner through 2026 in Europe ahead of a doubtless Australian liberate in early 2028.

Cupra will maintain the Volkswagen ID Polo hatch and ID Unpleasant diminutive SUV – plus the Skoda Epiq compact crossover – in Spain on behalf of its Volkswagen Crew siblings.

The batteries feeble by all four of the MEB21 devices are in-built Spain, which manner the quartet may perchance perhaps perchance tranquil all be exempt from punitive pricing measures in Europe, bettering profitability.

Volkswagen Crew head of Model Crew Core (which entails VW, Skoda and Seat/Cupra) educated media that Cupra has now been assigned ongoing responsibility for declaring the MEB21 platform, bettering the marque’s position for the length of the company.

A big blow to profitability in 2026 used to be the imposition of punitive tariffs on the Chinese language-built Cupra Tavascan electrical midsize SUV in Europe.

The European Union cracked down on what it perceives as unfair competition from Chinese language EVs final twelve months.

Cupra used to be tormented by manner of a margin-destroying 20 percent tariff on the Tavascan, but a confidential enterprise settlement used to be struck between EU bureaucrats and the Volkswagen Crew in most modern months exempting the Tavascan from tariffs from now on.

“The relief on the Tavascan is a enormous step forward,” finance boss Mayer educated Chasing Autos.

Mayer additionally said that product improvements all over other mannequin traces, including the introduction of the Raval, a facelifted model of the Born (that will arrive to Australia) and enhanced battery technology for the Tavascan may perchance perhaps perchance tranquil enhance buyer quiz.

Beyond fleshy EVs, Cupra CEO Haupt additionally said the logo used to be doubling down on depart-in hybrid technology as a in vogue bridging technology, while vary extender hybrids – foreshadowed by final twelve months’s Cupra Tindaya idea – are additionally being examined by the Volkswagen Crew.

“We will back the flexibleness [of hybrids] as long as we need. Don’t neglect, we’re now not finest working in Europe, but additionally in a international country.

“Vary extenders are being discussed. Now we want to gawk in expansive element at [market] developments, and we now wish to take these choices at a Crew diploma to train that we now be pleased the staunch powertrains for the long flee. This can count upon the market and the particular person.”