The new Seat Ibiza five-door will cost from £8995 - £300 less than the current base model.
The Ibiza will initially go on sale with a choice of three petrol engines: a 68bhp 1.2, 83bhp 1.4 and 103bhp 1.6.
It will come in three trims - S, SE and Sport - although not every engine is available with each trim.
Standard kit includes a height- and reach-adjustable steering wheel, height-adjustable driver's seat, speed-sensitive power steering, electric front windows, four airbags, an immobiliser, central locking, an MP3-compatible stereo and steering wheel-mounted controls.
SE adds body-coloured door mirrors and handles, electrically adjustable, heated door mirrors, electric rear windows, cruise control, air-con, a trip computer, a height-adjustable passenger seat and 15-inch alloy wheels.
Sport versions add sports suspension, sports seats, 16-inch alloy wheels and a leather steering wheel and gearknob.
Rear parking sensors and rain-sensing wipers are part of the £250 Convenience Park.
The Design pack, which costs £210, gives buyers a restyled dashboard, folding centre armrest, storage pack and leather steering wheel.
Stability control, an emergency braking assistance system, tyre-pressure monitors and a hill-hold function are part of a £280 pack of extras.
S 1.2 £8995
S 1.2 with air-con £9495
SE 1.4 £10,395
Sport 1.4 £10,695
Sport 1.6 £11,295
Our reviews are based on hard data and thorough testing in the real world.
Up to the minute news from around the globe