SEAT and CUPRA back in the black: a tariff deal on the Tavascan and tighter costs lift Q1 profit
SEAT and CUPRA have begun 2026 in noticeably better shape than the year before. Operating profit in the first quarter reached EUR 43 million — EUR 38 million more than a year earlier. For the Volkswagen Group company, that's a meaningful turn after a stretch in which cash was flowing into new EVs and into the fight over tariffs.
The big headache has been lifted from the CUPRA Tavascan. The electric SUV is built in China's Anhui province, which exposed it to an additional EU tariff of 20.7 percent on top of the standard 10 percent import duty. For a model that remains the largest in the CUPRA line-up, that was a serious blow: pricing risked becoming less competitive, and the business case less robust.
SEAT and CUPRA have now reached a minimum price arrangement with the European Commission, which spared the Tavascan from the extra tariff. The company directly links this outcome to its better Q1 result. But it isn't only about duties: the manufacturer also cut product and indirect costs.
Against that backdrop, it's striking that revenue actually fell 5.6 percent to EUR 3.677 billion. In other words, the company earned more not on top-line growth but on cost discipline and tighter margins.
In parallel, CUPRA is refreshing its electric range. The Tavascan has gained new versions and tech, the Born has been restyled and the main newcomer will be the Raval. This urban EV is set to be built in Martorell alongside the Volkswagen ID. Polo and should start at around EUR 26,000 before subsidies.
SEAT and CUPRA chief Markus Haupt said: "2026 is decisive for SEAT and CUPRA, and the first-quarter results confirm that we are on the right track. This is an important first step in our financial recovery."
The real test for SEAT this year won't come from the income statement but from the market: if the Raval lands at the right price and the Tavascan can hold demand without tariff pressure, CUPRA can move beyond its costly-experiment phase and establish itself as a stable electric brand.