Hyundai confirms Creta baby SUV plans

Hyundai has confirmed plans to build a city-sized SUV to rival the likes of Mazda's CX-3 and the Honda HR-V.

The new model will be named Creta as a tribute to the idyllic Mediterranean island of Crete.

Hyundai says that just as Crete "was the focal point for Greece's global prowess in trade and culture... Creta will be an influential global model for the Hyundai motor brand in one of the fastest-growing vehicle segments".

The manufacturer says the model will make its international debut in India this year before spreading to "new and established international markets".

But a spokesman for Hyundai Australia says it is too early to determine whether the model will go on sale locally.

The Creta will be Hyundai's second foray into the sub-compact SUV market following the introduction of its China-only ix25 SUV in Beijing.

The South Korean company has been caught testing its upcoming model in the past, while its Kia sister brand hinted heavily at building such a car with its Niro concept of 2014.

The car is likely to share dimensions with the compact ix25 along with styling derived from the brand's upcoming Tucson SUV.