As part of the Volkswagen Group, SEAT made the Ibiza on the same platform as the Polo and received most of its engines, including the 1.8-liter turbocharged.

The Europeans started to ask for hot-hatches, and besides the usual carmakers such as Volkswagen, Renault, Opel, Fiat, and Honda, SEAT joined the club and offered sportier versions. The Spaniards named those versions as Cupra (copper), and the Ibiza was the smallest to receive such a treatment.

With its rounded shapes and big headlights, the Ibiza was already a known vehicle on the market. The Cupra version was a surprise that came with a different front bumper that featured a broad grille on the lower side and two fog-lights on its outer part. Its wheel-fenders were slightly enlarged to emphasize the sporty look of the car. To complete the image, SEAT installed bigger wheels and a roof spoiler.

Since it was available only in a three-door version, the Ibiza Cupra offered great access for the front occupants and was limited to the rear bench. The front sport bucket-seats featured a special logo embroiled on the front seats seatbacks and contrast stitching upholstery. For the instrument cluster, the carmaker installed white dials.

Under the hood, SEAT installed the 1.8-liter, 20-valves turbocharged Volkswagen engine. It was the same four-pot used in the Audi A3, Audi TT, Volkswagen Polo GTI, and Golf GTI. It was paired as standard to a five-speed manual gearbox. A diesel version was offered as well.