Cupra Delays Entry into the US Market Until After 2030

According to foreign media reports, Cupra, a brand under the Volkswagen Group, has postponed its plans to enter the US market until after 2030. Volkswagen Group had high hopes for Cupra to achieve further growth in this key market. This decision is attributed to ongoing challenges in the automotive industry and changing market dynamics. Sven Schuwirth, the Vice President of Sales and Marketing for Seat and Cupra, stated in a release on July 28, 'We have not halted our plans, we have just delayed the entry into the US market. In the coming years, we will continue to monitor market dynamics to determine the most suitable timing and strategy, which aligns with Cupra's long-term vision.' Cupra, which originated from the Spanish brand Seat, became an independent brand in 2018. In 2024, global sales for Cupra increased by 7.5% year-over-year, reaching 248,100 units. In the first half of this year, Cupra sold a total of 167,600 vehicles, marking a 33% increase compared to the previous year. Last year, under the leadership of then-CEO Wayne Griffiths, Cupra first announced plans to enter the US market by 2030. In November of the same year, Cupra engaged in preliminary discussions with automotive retail giant Penske Automotive Group for an exclusive partnership in the US market. Cupra plans to open showrooms in collaboration with Penske along the East and West coasts and throughout the Sun Belt. In April of this year, Sven Schuwirth indicated that negotiations with Penske Automotive Group were progressing normally, with the goal of reaching a formal agreement by the end of this year or early 2026. A spokesperson for Penske Automotive Group has not yet commented on this matter. Notably, this partnership initiative with Penske Automotive Group has caused a stir within the network of Volkswagen brand dealers in the US. Executives from Cupra and the Volkswagen Group have stated that Cupra's success, achieved through stylish designs of hatchbacks and crossovers, as well as unconventional marketing strategies employed in Europe and other regions, could be replicated in the US market. Sven Schuwirth mentioned that in the European market, Cupra is positioned between the Volkswagen brand and Audi, with pricing approximately 5% higher than Volkswagen and 5% lower than Audi. Cupra originally planned to adopt a similar pricing strategy in the US market. It is reported that Cupra's Terramar crossover is similar in size to the compact Audi Q3. The brand initially intended to enter the US market with two models, later expanding its product lineup. One of the models is specifically designed and developed for American consumers, to be produced at Volkswagen Group's North American factory. Volkswagen Group CEO Oliver Blume pointed out in January that both Cupra and Scout Motors are expected to help the group increase its market share in the US.