Kia will launch a compact 4x4 in late 2008 or early 2009, based on the Soul concept car it first showed at the Detroit motor show last year.
The five-seater will be powered by engines from the Cee'd range - most probably the 1.6-litre petrol and diesel and 2.0-litre diesel - and will be available with two-wheel drive only.
The car will compete with cars such as the Nissan Qashqai, Ford Kuga and Toyota RAV4, as Kia attempts to double its European sales to 500,000 a year by 2010.
Kia insiders also report the company is planning a small MPV to rival the Nissan Note and Vauxhall Meriva for 2009.
It is also working on a model to run on E85 biofuel within the next three years, while a hybrid version of the Rio is being investigated, but is unlikely to go into production for at least five years.
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