Lancia is considering building a smaller version of the recently revealed Delta hatchback to cater to growing demand for more compact vehicles. Lancia currently sells the Ypsilon hatch in the supermini segment, but the Italian company is now looking at a model with more practicality and similar fuel efficiency to sit below its all new Delta.

Speaking with Automotive News, Lancia CEO Olivier Francois explained that there was space in the new lineup for another model positioned in between the Ypsilon and the Delta. Francois didn't reveal any concrete plans but confirmed management were running the numbers to check the business feasibility of the project.

The smaller Delta, which Francois referred to as the 'Deltina', will likely sit on a lengthened Fiat Grande Punto platform and incorporate similar features found in the new Delta. While Lancia hopes to sell 70,000 Delta's annually, if production is green-lighted for the Deltina sales are expected to reach 50,000 units.

Lancia Delta hatchback