Hyundai is planning a small sedan based on the next generation of its i10 city car (current-gen hatchback pictured). The Hurriyet Daily News reports that the car is set to be produced in Turkey, where the Korean carmaker is building a new R&D facility.

50,000 units of the second-gen i10 hatchback and sedan should start production at the Izmit factory by the end of the year. Hyundai is set to invest US$1.1 billion (RM3.35 billion) in the northwestern Turkish province of Izmit to turn it into a base for small car production. About 30% of the investment has been completed so far.

“We will begin to produce new and bigger versions of the i10, which will be set between the i10 and i20,” Hyundai Assan (JV between Hyundai and Turkey’s Kiblar Holding) chairman Umit Karaarsalan told the Hurriyet Daily News.

“As part of the same platform we can easily produce a sedan, so as soon as we release the other model we will begin to work on sedan production.”

The next-gen i10, according to various media reports, is set to debut at the Frankfurt motor show in September, with a range of petrol and diesel powerplants available. Indian Autos Blog says Hyundai is spending US$300 million on its Chennai factory to set up a flexible engine plant and a new press shop facility, most probably in preparation for i10 production.

The Izmit plant may look after demand from the European markets while the Chennai plant may produce for the Asia Pacific and African regions.