The Seat Martorell plant is back on track
Contrary to what had been announced by the Volkswagen group, the Seat brand will not be discontinued by 2030. Initially, the Volkswagen Group had planned to develop the Cupra brand, positioned as sportier and more expensive than Seat, with the aim of increasing profit margin rather than volume, but this encountered several obstacles. In an environment where the purchasing power of European customers is limited and stagnant, the demand for cheap vehicles remains significant (to the point that the Dacia Sandero was the best-selling car in Europe in 2024).
 
The Martorell plant (Spain) will ultimately not be used to produce all of the Volkswagen Group's A/B segment electric cars (ex ID1, ex ID2 and derivatives) since the model that was to be called ID1 will be produced in Portugal and the other model that was to be called ID2 X will be produced in Pamplona (Spain), as well as its Skoda version.
 
Given that electric car sales are not as high as initially projected, the Martorell plant will ultimately not produce as many cars as anticipated. Therefore, another range of vehicles will be needed to bring volume to this factory, especially since the Audi A1, which is produced there, is expected to cease production next year.
 
It was difficult for the Volkswagen Group to replace the small Seat Arona and Ibiza with Cupra models of the same size, as the Cupra brand is positioned in the premium segment and has a sporty focus, which doesn't suit either the Arona or the Ibiza. Conclusion: the Seat brand will continue to exist beyond 2030, with a range of economical vehicles that could align more closely with Dacia's philosophy.
Inovev forecasts around 75,000 Renault Twingo E-Tech vehicles sold in 2030
Renault has unveiled the new all-electric Twingo E-Tech (A-segment), which will go on sale in spring 2026. It remains quite close to the concept presented last year but features five doors, like the latest Twingo sold from 2014 to 2024. The new model's one-box design is reminiscent of the first version presented in 1992 (which only had three doors). Measuring 3.79 m long, 1.72 m wide, and 1.49 m high, the Twingo E-Tech was designed in-house (and no longer with the help of Mercedes, as with the previous generation) in both Europe and China. The main advantage of the Twingo E-Tech compared to the Renault 4 E-Tech and Renault 5 E-Tech is that it will appeal to customers looking for a more affordable electric car (under €20,000).
 
Given its low price, the Twingo E-Tech is positioned as an economical city car, hence its 82 hp electric motor coupled with a 27.5 kWh battery, allowing for a limited range of 263 km in the best-case scenario. This model is not yet the E-Car envisioned by the European Commission, as it is €5,000 more expensive, but it remains one of the least expensive electric models on the market today, although the Dacia Spring is even cheaper (€17,000).
 
The Renault Twingo E-Tech is expected to lead to a future Dacia of the same dimensions and also a future Nissan. These three vehicles will be produced in the same factory, in Novo Mesto, Slovenia. Inovev forecasts 76,000 Twingos sold in 2030, plus 46,000 Dacias and 28,000 Nissan derivatives, for a total of 150,000 cars.
The Ineos Grenadier is selling much less than expected
British carmaker Ineos, which took over the Mercedes factory in Hambach (producing Smart models), France, in 2023, is currently experiencing difficulties because its Grenadier model, powered by a BMW six-cylinder petrol or diesel engine and inspired by the former Land Rover Defender, is not selling as well as expected. Ineos reportedly aims to produce 30,000 vehicles per year in Hambach, but by 2025, production will not even reach 7,000 units, following the 7,500 units produced in 2024.
 
In Europe, the vehicle is expensive (over €75,000, not including additional taxes in France) and faces competition from American, European, Japanese, and Korean (but not yet Chinese) internal combustion engine SUVs, which are often more modern and less expensive. In reality, the Grenadier primarily targets the Mercedes G-Class, which has a loyal customer base (40,000 sales in 2024 compared to 7,500 Ineos Grenadier). In the United States, its largest market worldwide, the Ineos Grenadier has recently been affected by the 25% tariff applied to vehicles imported from Europe, and its sales in that market have declined since August 2025.
 
As a result, the carmaker's sales, which had peaked in June and July 2025 at more than 700 sales per month, have fallen back to less than 600 units per month, and the launch of the derivative pickup has not changed anything.
 
Due to an extremely expensive penalty in France, only one Grenadier (all versions combined) was sold on this market in 2025. The carmaker has become aware of this problem and plans to launch an electric version with or without a range extender, called Fusilier, which should be released in 2026.
Smart has seen its sales in Europe halved by two in 2025
Contrary to Mercedes and Geely 's forecasts, sales of the Smart brand (owned 50% by Mercedes and 50% by Geely) are currently much lower than when the brand only offered the Fortwo in European markets. They are also significantly lower than the targets set by the two carmakers (250,000 sales per year).
 
The three latest Smart models #1, #3, #5 have failed to gain traction in either the European or Chinese markets. In 2025, their sales failed to take off in China (32,948 units in the first nine months of 2025 compared to 33,619 in the first nine months of 2024), and their sales were even halved in Europe (9,130 units in the first nine months of 2025 compared to 19,889 in the first nine months of 2024).
 
Mercedes and Geely have agreed that the project to launch new electric Smart cars in higher segments has not lived up to its promises and that the launch of a cheaper model, such as the replacement for the electric Fortwo (#2), remains crucial for the future of the brand.
 
As a result, Mercedes had to change its plans regarding the replacement of the Mercedes A-Class with a similarly sized Smart #4. The German carmaker has decided to replace its A-Class with a new Mercedes A-Class (likely in 2028) because a Smart #4 would have had less sales potential than a new Mercedes A-Class. The brand is therefore not abandoning the C-segment, contrary to what it announced a few months ago.
Chinese cars now represent 8% of the European passenger car market
Sales of Chinese cars (both Chinese-made and non-Chinese brands under Chinese control, such as Volvo) reached nearly 790,000 units in Europe (30 countries: EU + UK + Switzerland + Norway) in the first nine months of 2025, compared to 575,500 in the same period of 2024, representing a 37.3% increase year-over-year. These sales thus account for 8% of the European passenger car market at the end of September 2025, compared to 6% at the end of September 2024. By comparison, Japanese car sales represent 13% of the European passenger car market, and Korean car sales 8%. They also represent 11% of European sales of battery electric vehicles in the first nine months of 2025.
 
Sales of Chinese cars are therefore booming, and this expansion is expected to continue, according to Inovev, due to the growing supply and greater acceptance of this type of car by European customers. This acceptance is undoubtedly due to the marketing efforts of Chinese carmakers, but above all to their immense achievements, particularly in design and technology. It's also worth noting that the prices of Chinese cars remain comparable to their European, Japanese, and Korean competitors, despite the additional taxes added to the base prices.
 
The best-selling Chinese or Chinese-controlled brands in Europe remain Volvo, MG and BYD, but the gap between these three brands has narrowed considerably between 2024 and 2025.
 
By model, two Volvos are among the top three best-selling Chinese cars in Europe, but the best-selling model remains the MG ZS, which has led this ranking for several years. A BYD ( Seal U) comes in fourth place.
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