Hyundai Motor India Managing Director H S Lheem said the model, which would be smaller than Santro and compete in the 800 cc segment, is being researched and developed jointly by Indian and Korean engineer teams at Hyderabad and Namyang.
Presently, only Maruti Suzuki has a new model in the 800 cc segment. The car would be both for the domestic and export markets, he said.
Asked whether it would be pitted against Maruti 800, Lheem said "the Maruti car is an old one."
The company would showcase its next model 'i20' at the Paris Motor Show next month.
He said that the car would be introduced in India by December and exported afterwards.