Volkswagen and Ford worked together to counteract the Eurovan alliance made between Fiat and PSA Group, and in 1995 they launched a range of minivans sold under three different badges.
While the Germans kept the most expensive and better-equipped vehicles, SEAT was in charge of attacking the budget-priced MPV market. It aimed directly at the rental companies and for those who asked for more from a minivan. The Seat Alhambra was a good bet since the Spanish brand was lower-priced than its siblings Volkswagen Sharan or Ford Galaxy.

SEAT introduced the facelifted Alhambra in 2000. It kept its brand image with the chromed S-badge at the front, surrounded by a body-colored bumper extension. Its grille with horizontal slats was spread between the redesigned headlights, which featured an angular styling and clear glass. Its steep hood was continued in the same line by the large windshield. The extended roof was slightly curved toward the end of the car, where a curved tailgate ended the vehicle. It was the transition design between the bio-design and new-edge design trend.

Inside, SEAT installed a seven-seat layout in a 2-3-2 configuration, with the second and third rows folding to increase the trunk’s volume. Due to its high-mounted seating position, the first and second rows offered enough room for passengers, although the third row was cramped and suitable mostly for children or short adults. The redesigned instrument panel featured silver rings around the dials and red needles. A new infotainment unit with a navigation system became available for the entire range.

Under the hood, SEAT installed VW-sourced engines, either gasoline or turbo-diesel versions.