At the end of 2000, SEAT unveiled a restyled version of the small Arosa, with a more attractive appearance and a completely new interior, reasserting the Arosa's particularly versatile, dynamic and sporty character.

The Arosa was launched early in 1997 as the successor to the Marbella. With the Arosa II, the smallest model in the SEAT range took a considerable leap forward. It was unveiled in October 2000 at the Paris Motor Show, alongside the spectacular Salsa Emocion concept car. The new Arosa completed a cycle in the total renewal of the SEAT range, which had begun just two years earlier, also at the Paris Motor Show, with the launch of the Toledo II.

Developed at the Martorell Technical Centre, the Arosa II was the first example of Walter de Silva's style at the helm of SEAT design. The biggest change was to the front end, in line with the Ibiza and Córdoba, with a grille divided into three sections and twin headlights covered in clear glass, which echoed the shape of the bonnet. The new Arosa combined ideal size for urban traffic with excellent dynamic qualities and first-class design, in keeping with SEAT's characteristic image.

A few days before the launch of the Arosa II, SEAT had unveiled a new slogan to illustrate this transformation: ‘SEAT auto emocion’ (SEAT auto emotion). With the new Arosa, the entire SEAT range had a consistent style that strongly conveyed the brand's sporting spirit.

Although, at heart, the Arosa II was just a restyling of the original Arosa, half of its parts had been modified and a third were completely new. In addition to the front end, the eye-catching polyhedral rear lights and the new dashboard with separate speedometer and rev counter stood out. All this gave it a sportier look.

The Arosa II maintained a wide range of engines. The petrol range started with the 50 HP 1.0 engine, followed by the 60 HP 1.4, which had the option of an automatic gearbox, and the most powerful was the 100 HP 1.4 16v. Diesel options included a 60 HP 1.7 SDI and a 75 HP 1.4 TDI three-cylinder engine.

There were four trim levels: Select, Stella, Signa and Sport. The Stella already had a driver's airbag, power steering, front electric windows, remote central locking, height-adjustable steering wheel and seat, split rear bench seat, body-coloured bumpers and galvanised bodywork (with a 12-year perforation rust guarantee).

The Signa added a passenger airbag, alloy wheels, fog lights, rear-view mirrors, door handles and side mouldings in the body colour and the Access-plus system on the front seats (facilitating access to the rear seats). The Sport had ABS (standard across the range in 2003, optional in the SDI), side airbags, leather steering wheel, sports front seats, audio system with four speakers and sports suspension.

A year after the launch of the Arosa II, at the 2001 Frankfurt Motor Show, SEAT unveiled two design studies based on the Arosa and carried out by the Martorell Technical Centre: the Arosa Racer and the Arosa City Cruiser, both two-seaters. The first was a mini sports car and the second a luxury city car. They shared the SEAT stand with the Tango concept car.

At the end of 2003, the Arosa was no longer available with diesel engines, and in July 2004 it was discontinued. SEAT no longer had a model in the A segment of the market until the arrival of the new Mii in 2011.