Hyundai will add entry-level SUV

Hyundai will add a second small SUV to its European lineup, doubling its offering in a segment that is expanding rapidly.

The automaker said it will launch the SUV, which will be called the Bayon, in the first half of next year.

The Bayon will be positioned below the Kona small SUV and joins the automaker's other SUVs -- the Tucson and Sante Fe large SUVs, and the Nexo fuel cell vehicle.

"By launching a new, additional B- (small-) segment model as the entry point into our SUV lineup, we see a great opportunity to cover European customers' demand even better and to increase our offering in a highly popular segment," said Hyundai's head of marketing and product for Europe, Andreas-Christoph Hofmann, in a statement.

Hyundai released a teaser picture of the Bayon. The company said it will disclose more details about the vehicle soon.

The name Bayon was inspired by the city of Bayonne in southwest France, Hyundai said.

The Bayon will join new entries including the Ford Puma and upcoming Toyota Yaris Cross in the small SUV segment.

LMC Automotive forecasts that sales of small SUVs in Europe will increase to more than 2 million next year from a predicted 1.75 million this year, then rise to 2.5 million in 2022 and 2.7 million by 2025, according to an analysis of the segment by Automotive News Europe.

JATO Dynamics analyst Felipe Munoz said small SUVs are slowly replacing the small car as Europe's most important segment.

New entries such as the Bayon will boost the segment to more than 20 models, up from six a decade ago.

SUV, EV push

In a presentation to investors this month, Hyundai said it will expand its electric push into SUV and crossover segments as small as minicars.

The automaker plans to introduce a battery-electric A-segment (minicar) crossover and a battery-electric small SUV by 2022.

The small SUV could be a battery-electric version of the Bayon. Hyundai declined to comment.

Currently, Hyundai sells the Kona in gasoline, hybrid, and battery-electric versions in Europe. It also sells the Ioniq compact car with a full-electric drivetrain, along with plug-in hybrid and full hybrid versions.