Looming environmental targets, the rise of the software-defined car and rapidly evolving consumer preferences are pushing the automotive industry into uncharted territory. For most players, that means pouring investment into research and development (R&D). Europe’s automotive R&D investment stood at €59.1bn (US$64.5bn) a year in 2021. According to the European Automobile Manufacturers Association, that positions the EU as the world’s largest investor in auto sector innovation, comfortably ahead of Japan (€31.7bn), the US (€22.4bn) and China (€14.3bn).
Volkswagen Group is Europe’s largest automaker, and has a budget to match. In fiscal year 2022, R&D costs at the Volkswagen Group’s Automotive Division’s rose 21.3% year-on-year to €18.9bn, accounting for 8.1% of sales revenue. SEAT SA is a relatively small part of the wider VW Group, but it has bold ambitions of becoming a global player. The job of overseeing its R&D efforts falls to VW Group veteran Werner Tietz. As Executive Vice President of R&D for both the SEAT and Cupra brands, the pressure is on to prepare for what promises to be a radically new mobility paradigm.
