Hyundai has announced that the next generation i20 will cost from £10,695 when it goes on sale in the UK in January 2015.

Five trim levels are to be offered, with a choice of five engines. A 1.2-litre petrol kicks off the range and is offered in two power outputs – 75PS or 84PS. The other petrol option is a 1.4-litre with 100PS, offered with the choice of an automatic transmission.

Two diesel variants are available – a 1.1-litre with 75PS and a 1.4-litre with 90PS. The former is the most economical engine in the i20 range with emissions of 84g/km and fuel consumption of around 88mpg.

The entry equipment grade is called S. It comes with steel wheels, electric front windows, electric heated door mirrors and a radio with USB/Aux-in. Choosing S Air, priced from £11,445, adds manual air conditioning, while S Blue models get the efficient 1.1-litre diesel engine, stop/start and low rolling resistance tyres.

SE trim, priced from £12,725, is expected to be the strongest seller. Standard gear includes 16-inch alloy wheels, Bluetooth, cruise control, lane-departure warning system, front fog lights, reversing sensors, rear electric windows and steering wheel mounted audio controls. Options include LED running lights and a smartphone dock.

Premium trim adds automatic lights and wipers, auto dimming rear view mirror, centre console arm rest, climate control, LED running lights and rear lights, power folding mirrors, privacy glass, projector head lights and a smartphone dock. A navigation system with rear-view camera is optional.

Premium SE is the top trim. It gains chrome exterior details, front parking sensors, heated front seats, heated steering wheel and a sunroof.

We’ll be driving the new i20 in coming weeks so stay tuned for our verdict.