The Kia Venga has no direct rivals and is placed between the Ford Fiesta and Vauxhall Meriva, the car maker has told Autocar. It was officially launched at the Frankfurt motor show.
On sale in the UK in February, the Venga has been described by a Kia source as a "Rio Plus", referring to the company's budget supermini. However the new Rio, which arrives in 2011, won't just be a smaller version of the Venga, which is based on the Soul platform.
The car will be built in Europe and has clever packaging to maximize interior space.
It is 4068mm long and 1600mm tall, with a 2615mm wheelbase, and inside there is a sliding rear bench that can also fold flat.
The Venga will be powered by 1.4 and 1.6 petrol and diesel engines, producing between 74bhp and 113bhp. All versions get start-stop technology.
A Kia source has also told Autocar there could be a "real opportunity" for a hybrid to join the range.