SPY PICS: New small Hyundai SUV to JUKE it out

Hyundai's new baby SUV has been spotted for the first time testing in California's Death Valley, before it goes on sale in Australia -- where it will be positioned below the Tucson -- next year.

The Korean car-maker's new SUV, although heavily camouflaged, clearly has small dimensions and some quirky design cues that would suggest Hyundai is aiming the crossover squarely at Nissan's highly successful seller, the JUKE.

This comes as no surprise, as Hyundai themselves admit they are quite envious of the eccentric SUV's sales, especially in North America, where JUKE sales continue to climb.

The existence of the small SUV as an R&D project was admitted by Hyundai Europe's Thomas Burkle at the Frankfurt motor show last year, the Hyundai design chief even acknowledging the company was late to the party.

Hyundai Motor America's CEO, Dave Zuchowski, said the baby SUV would be targeted at "new, first-time younger buyers", and when talking about the new car's appearance added: "Think of maybe something that looks like a Juke or something that has edgy, dynamic styling".

According to a story first reported by UK mag Auto Express, Hyundai's new small SUV will be most likely based on the platform underpinning Hyundai's small hatch, the i20.

Auto Express also reported the baby crossover should use the latest engines from the next-generation i30 hatch, which goes on sale here in the second quarter of 2017.

Therefore they should include petrol motors such as a turbocharged 1.0-litre three-cylinder engine and a 1.4-litre four-cylinder engine. It's rumoured there will also be a diesel-powered 1.6-litre powerplant.

There is no official word on when the new SUV will be revealed, however, Hyundai has suggested the car will be released around mid-2017.