Seat will launch a new city car called Mii in 2012, going after a share of a market sector it has been absent from since 2004 when the Arosa was discontinued.

The Mii is part of Volkswagen Group's range of new city cars, which will also include the Volkswagen Up and Skoda Citigo.

It will use a new 1.0-litre engine with power outputs of 60bhp and 75bhp, while provisional figures suggest Ecomotive versions will offer CO2 emissions as low as 97g/km.

The Mii will feature an autonomous braking sustem, able to intervene if the car senses a collision is imminent at low speeds and apply the brakes.

Prices are expected to start at less than £8,000 when the car arrives in the UK in Spring 2012.