SEAT has just presented a record profit of 633 million euros (approximately 4.7 billion kroner) for 2024. This is the best result in the company's history, but management warns that the future requires increased flexibility.
CEO of SEAT and CUPRA, Wayne Griffiths, is pleased with the development, but he emphasizes that the market is changing.
"After a very intense year, we have achieved our best financial results ever. The record high numbers are the result of a focused effort over the past five years to create a more profitable future. But we face major challenges – electric car sales are slower than expected, competition from China is growing, and trade agreements are uncertain," he says.
SEAT's total revenue rose to 14.53 billion euros, an increase of 1.4 percent compared to the previous year. At the same time, the operating margin landed at 4.4 percent, indicating a stable economic course.
Sales of cars from SEAT and CUPRA reached 558,100 units in 2024, an increase of 7.5 percent compared to 2023.
This has resulted in a gross cash flow of 1.3 billion euros, which provides the company with capital to invest in the future, according to a press release.
Focus on efficiency at Seat and Cupra
According to Patrik Mayer, Executive Vice-President for Finance and IT, the excellent results are an expression of a strong strategy and a sharp focus on efficiency.
"We have demonstrated our resilience and achieved records in both revenue, operating profit and investment levels. Despite the challenges facing the automotive industry, we are reaffirming our profitability this year. This gives us the strength to navigate these changing times," says Mayer.
However, the strong financial results have not come about by themselves. Over the past five years, SEAT has undergone a significant transformation that has strengthened the company.
CUPRA has played a crucial role in this development, and the brand has sold 800,000 cars globally since its launch. The goal is to reach one million cars sold by 2025.
In total, CUPRA has launched seven models in seven years, and later in 2025, another new model will be introduced, the CUPRA Raval.
One of the major changes has been a strategic restructuring that has made the company more efficient. Fixed costs have been reduced by 30 percent, while revenue per car sold has increased by 35 percent since 2019.
Electrification also plays a central role in SEAT's future plans. The group is investing heavily in making Spain a European hub for electric vehicles. So far, 10 billion euros have been invested in electrification, of which three billion have gone to upgrading the production facilities in Martorell.
At the same time, the company has worked on a cultural change that will make the organization more agile and ready for the challenges of the future.
In connection with SEAT's 75th anniversary, the company is launching the SEAT CUPRA Foundation. The foundation's purpose is to create new opportunities for young people and support projects in the fields of art, sports and health.
Wayne Griffiths sees the initiative as a natural development of the company's social responsibility.
"We put Spain on wheels 75 years ago, and today we are one of the most important companies in the country. With the SEAT CUPRA Foundation, we will contribute to creating a better future for future generations," he says.
With a solid financial foundation, strong sales figures and an aggressive electrification strategy, SEAT SA is in a strong position. But challenges are looming on the horizon, and the company must be able to navigate a market that is both characterized by technological development and fierce competition.
