Cupra is worth more than Seat. Much more. The automobile brand, which has only been in existence for six years – as an autonomous brand – has an estimated price of close to 1.2 billion euros, according to the consulting firm Interbrand, one of the pioneers in the world in the valuation of intangible assets of the companies.
In its latest edition of the ranking of Spanish brands, which is prepared every two years, Cupra has entered directly at number 11. Currently, the car company’s logo has acquired popularity in a very short time, to the point that, according to Interbrand parameters, it already has a value that exceeds that of consolidated brands such as Mapfre, El Corte Ingés, Mahou, Real Madrid, Banc Sabadell, Naturgy or FC Barcelona.
From Interbrand they justify their calculations based on different arguments. 1) Cupra is one of the fastest growing brands in Europe, since since its launch in 2018 it has managed to sell more than 530,000 units. 2) Projections suggest that Cupra could represent 75% of the sales of the Seat holding company, making it the brand that will attract the most value in the future of the automobile holding company. 3) Its commitment to electrification ensures a leading position in the market. 4) It has an effective sponsorship and communication campaign focused on emotional aspects (for example, collaboration with the artist Rosalía). 5) It has a powerful distribution network, just look at the latest Cupra City Garage in Madrid.
But how has it been possible for its brand value to have multiplied by 2.5 in just two years? “We are talking about a brand that in just five years has managed to create its own universe around music, lifestyle, and sports. Its objective is to establish meaningful relationships with people beyond the product,” they explain from Interbrand.
And how is that estimate arrived at? The calculation formula, which has been used for decades and has been updated, is a secret, but other consulting firms also reach the same conclusion. For example, Brand Finance has calculated a slightly lower value for Cupra (754 million euros), but in any case higher than that of Seat, which is the group’s historical brand.
It is not clear, in this context of the holding company’s commercial policy, how much Seat is worth, which has glorious decades of history behind it but a more uncertain present. At Interbrand they assure that it is no longer part of the top 30 Spanish brands (that is, it is worth less than 200 million euros).
In its previous edition, in 2021, it was valued at just over 400 million. The emphasis was placed on urban mobility, a market that now seems to be in decline (the Seat Mo shared electric motorcycles will stop operating, as reported a few days ago). For its part, Brand Finance still gives it a price close to 600 million. In both cases, Cupra has won the race. And there doesn’t seem to be any turning back.
As for the rest of the Spanish brands, Zara (leader with 14,735 million), Santander and Movistar appear this year on the Interbrand podium. In general, Spanish brands have recovered the value lost during the pandemic and already exceed pre-2019 levels, according to the report. The aggregate figure of the 30 most expensive totals 55,873 million euros, a figure that reflects an increase of 10% compared to 2021.
“A more intense recovery could have been expected. The global scenario of economic unrest also seems to anticipate a slowdown in the growth of Spanish brands,” the study points out. On the other hand, he highlights how “a growing number of global brands have ventured into new categories”, a leap that in Spain is still difficult to take.
Among the curiosities, Spain has some brands with a certain historical weight, because the average age of those present in the ranking is 71 years. The one that grows the most in the 2023 edition (25%) is also the oldest (178 years): Loewe.
