Korean automobile giant Hyundai Motor India Ltd has announced that it is working on a compact sedan based on the Grand i10 as well as a compact sports utility vehicle (SUV).

The Indian arm of Hyundai announced that the compact sedan based on the small car would be launched by March-April next year.

Rukh Han, senior executive director at Hyundai Motor India Ltd, said, "We are developing a compact sedan based on the Grand i10. It will be launched by March-April next. We are also developing a compact SUV to compete with Renault Duster and Ford EcoSport."

The compact car/sedan would compete with rivals like the Maruti Swift Dzire and the Honda Amaze.

India's passenger car industry has long been suffering decline in sales, mainly due to persistent slowdown in the economy. Sales in FY2012-13 slipped nearly 7 per cent year-on-year. The decline has increased to nearly 10 per cent so far this year.

However, the compact sedan and SUV segments of the car industry shunned the slowdown and reported decent growth in sales this year.

Hyundai Motor India also claimed that the drastic fall in the vale of rupee against the US dollar over the recent past hasn't impacted the company's production as it successfully compensated the deficit in the Indian market by exploring new global markets.