Volkswagen of Mexico will launch Seat sub-compact models in Mexico on December 11, importing the cars from Spain. Executives said the move is in response to increased competition in the Mexican sub-compact market.

Ford recently introduced its Fiesta model while DaimlerChrysler has just begun selling the imported Hyundai Atos city car. Volkswagen currently leads the Mexican sub-compact vehicle market, with a share of 28%.

The move follows the December 1 launch of seven Porsche models which will be sold at Mexican Audi dealerships.

Audi was chosen as the new distributor for Porsche in Mexico because of the company's success in the local luxury market, believed to be a 20% share.