SPY PICS: Kia's next Cerato

A year before Korean car-maker Kia is scheduled to release its all-new Cerato small car, this pre-production prototype has been caught undergoing powertrain testing on public roads in California.

Also known as K3 in Korea, Cerato will play an increasing important role in Kia Australia’s ambitious sales targets when it reaches showrooms late in 2016.

The Cerato competes directly with the top-selling Toyota Corolla, Mazda3 and Hyundai Elantra in what is arguably the most competitive and price-sensitive vehicle segment in Australia and globally.

The new Cerato shares its new platform with sister brand Hyundai's new Elantra, which was revealed last year and arrives Down Under within months.

Both small sedans (while the Cerato will again be offered in hatchback form, the next Elantra will also spawn a five-door sister model to replace Hyundai's existing i30 hatch), owe their interior and exterior styling to the Korean car-maker's design chief Peter Schreyer.

Along with the new exterior, which was previewed by the Novo concept that debuted in Seoul last year, Kia is believed to have greatly improved the Cerato’s standard safety and interior comfort features and may also include driver-assist technologies such as lane-keeping assistance, active cruise control and forward collision warning.

Don’t be surprised to find Kia offering its latest 1.6-litre turbocharged four-cylinder petrol engine along with a seven-speed double-clutch transmission.

The 2017 Cerato will be built in South Korea at Kia's Hwasung plant. Kia Australia presently offers the Cerato in three distinct body variations -- four-door sedan, five-door hatch and two-door coupe -- with the range starting at $19,990 drive away with a 1.8-litre petrol engine.