Strong demand for smaller and more fuel-efficient models in North America has carmakers scrambling to increase their compact offerings in order to capitalize on the market shift. Hyundai is the latest company reported to be considering adding more small cars to its U.S. lineup, and is said to be nearing a decision on bringing its i10 subcompact Stateside.

The i10 is a five-door hatchback sized between the Smart ForTwo and Honda Fit (Jazz) and built in India. It was first launched in October last year and is currently on sale in more than 70 countries, but if it were to be offered in the U.S. many of its current specifications will need to be changed.

Speaking with Automotive News, an insider revealed that the car could be sold in the U.S. as a Hyundai or Kia or both and that it would need “beefing up.”

"We will put about 400 or so pounds into it and bring it up to U.S. safety standards," said the source. "This is a real working prototype. When we get cars at this stage, there's a good chance they're a go."

Power comes from a 66hp (50kW) 1.1L petrol engine in the base model, and with a kerb weight of just 1,892lb (860kg) the car returns an impressive 56mpg (4.2L/100km) fuel economy rating. A larger 80hp (60kW) 1.2L model is also offered.