Seat has launched its most economical car – the tax exempt Ibiza Ecomotive.

The Volkswagen-owned company has fitted the Ibiza supermini with an ultra-frugal 1.4-litre diesel engine which emits just 99g/km of carbon – placing the Ecomotive into the road tax-exempt band ‘A’.

The frugal supermini achieves 74mpg on the combined cycle, and is available in either three or five door variants, both of which are fitted with air-conditioning, for just £10,995.

And for the driving enthusiast, Seat has installed a new 1.4-litre petrol engine into the Ibiza.

The new engine develops 100bhp – up from 85bhp – and propels the Ibiza PS Sport from 0-62mph in 11.2 seconds and on to a top speed of 118mph.

Outside, the Ibiza Sport wears 16-inch alloy wheels and sports a body-coloured rear spoiler, while the interior gets sports seats, a leather-clad three-spoke steering wheel and an MP3 compatible stereo with a connection for your iPod – all from £9,395.

The revised Ibiza model range now starts with the entry-level Ibiza Reference Sport which is available with a 1.2-litre petrol engine or a 1.4-litre diesel variant, with prices starting from just £8,695.

The range-topping Seat Ibiza FR is fitted with a 130bhp 1.9-litre turbo diesel engine propelling the supermini from 0-62mph in under ten seconds and on to a top speed of 129mph, with prices starting from £13,350.