Cupra Brings Disappointing News to Its Awaiting US Fans | Carscoops

      “Current challenges” and “shifting market conditions” are cited as reasons for delaying North America expansion

      7 hours ago

      by Chris Chilton

      Cupra, a division of VW, has halted its plans to enter the US market.

      The brand was expected to debut in 2030, but that timeline has been abandoned.

      Officials indicated that US import tariffs and a sluggish adoption rate for electric vehicles prompted the decision.

      Despite VW’s Cupra brand recently achieving its highest half-year sales figures, a key initiative for its growth has now been sidelined. The plan to launch Cupra in the American market within five years has been confirmed as canceled this week.

      Related: The Latest Concept from Cupra Suggests Its Future

      Cupra has withdrawn its US expansion strategy for 2030, citing “current challenges within the automotive sector” and “shifting market conditions.” While details were sparse, it is likely that the slow uptake of EVs in the US and the import tariffs on European vehicles played a significant role in this choice.

      As part of a recent agreement between the US and the EU, European cars will now incur a 15 percent tariff, up from a previous 2.5 percent, following the tariff upheaval that began this spring.

      Electric Crossovers and a Presence in North America

      Initially, Cupra had plans to introduce two electric crossovers in the US: one an updated version of the current combustion Formentor and the other a larger electric SUV. The bigger model was intended to be manufactured at a VW Group facility in North America, potentially in Mexico, which is now subject to a substantial 30 percent tariff. Reports also suggested that Cupra was in discussions with the US Penske dealer group regarding the sales of EVs, PHEVs, and combustion engine models.

      However, Cupra clarified this week that it is not completely abandoning its North American expansion plans but rather placing them on indefinite hold. With a different president potentially in office in four years, the trade landscape could change significantly.

      Cupra’s Executive Vice-President for Sales, Marketing and Aftersales, Sven Schuwirth, stated, “We’re not stopping, just postponing our U.S. launch and will continue to monitor market developments in the coming years to determine the best timing and approach, aligned with the brand’s long-term vision.”

      Tariffs Are Impacting Operations Elsewhere Too

      Cupra’s sales are also affected by additional tariffs, as the China-manufactured Tavascan faces a 21.3 percent duty when entering the EU, in addition to a 10 percent tariff on all imports. Nonetheless, despite these challenges, escalating production costs across all models, and increased competition, Cupra deliveries rose by 33.4 percent to reach 167,600 in the first half of 2025.

      Lead image Cupra/ChatGPT