The Spanish automaker will start selling sporty, more expensive versions of its Leon and Ibiza models in China in early 2012.

Seat will showcase its model lineup at the Shanghai auto show this month to broaden awareness of the brand in the world's largest auto market.

Within the VW Group brand portfolio, Seat specializes in compact cars with sporty performance.

Seat hopes that selling cars in China will help restore the brand to profitability and boost capacity at its underused factory near Barcelona, Spain. Last year, the plant produced 335,000 cars, well short of its 500,000-unit capacity.

According to a report by IHS Global Insight, VW initially will import Seat models into China, then launch production at a new joint-venture plant with FAW Group in Foshan in southeast China's Guangdong province. That factory will be completed in 2013.

Last year, Seat sold 339,500 cars in more than 70 markets worldwide.

The brand has been hit hard by the economic slump in its home market of Spain and produced a slight recovery last year,

narrowing its operating loss to 311 million euros (2.9 billion yuan).

VW Group currently markets the VW, Audi, Lamborghini and Skoda brands in China.