SEAT again under study for Oz

The diversity of Australian new-vehicle market is one of the most expansive on earth, with up to 65 brands on offer, but that hasn't curbed the interest Spanish manufacturer SEAT.

SEAT told motoring.com.au last month that it was again eyeing the Australian market, for at least the second time since the Volkswagen-owned brand departed from most recent five-year stint here between 1995 and 1999.

But Volkswagen Group Australia Managing Director John White said that although the addition of SEAT could be a good thing for Australian buyers, there was concern within VW and Skoda locally that similar-sized offerings from SEAT could erode model sales.

"The SEAT business case is under review for Australia, and Volkswagen Australia is assisting with that research," White told media outlets including motoring.com.au at the Paris motor show last week.

"[Ultimately] the decision will be made higher up, but there is concern of dilution of models within the [Volkswagen and Skoda] brands’ current portfolio."

There’s also a concern that the return of SEAT could suffer a similar fate to that of Opel, which pulled out of Australia last year after just 12 months on the ground.

But SEAT CEO and former Skoda head, Jurgen Stackmann, says Australian buyers can better relate to offerings from elsewhere in the Volkswagen family.

"I know Australia quite well from my Skoda times," Stackmann told motoring.com.au recently. "It’s an exciting market and European-styled cars seem to be on the march forward in Australia.

"I believe from a technology point of view [and] from a design point of view, the SEAT brand could work well in Australia."

Stackmann told Fairfax at Paris that it could coincide its reintroduction to the Australian market with its MQB-based SUV due in 2016, and that the Golf-based Leon small car was also likely from launch.

SEAT's Mii micro-car (based on the Volkswagen up!) and Ibiza, which are also produced in right-hand drive, are other likely candidates.

"Basically we're still focusing very much on the European region, that's very much where we were born and that's where we have to grow," he said.

"But we're currently looking into regional expansions and yes, Australia is clearly on our map.

"We have to take it step by step. We are focussed on Europe and we are currently investigating opportunities in China. Once we are in the region then we'll be looking to Australia as well."

SEAT revealed a new Leon-based crossover wagon at Paris called the X-Perience (pictured), which Stackmann said would be ideal for Australia.

"Going from the response we had at Paris, I think our new Leon range clearly fits the Australian market. With the compact SUV coming in 2016, that will be an appropriate time to re-enter the market," he said.

"First we need the right line-up to start with. With the Leon family range, plus the SUV coming, it would be a very good time to look at Australia."

But with just 10 brands accounting for almost 70 per cent of overall vehicles sales in Australia, and with SEAT model pricing likely to be close to that of Skoda, the addition of yet another Volkswagen brand is one unlikely to make a great deal of fiscal sense for the group.