Czech luxury carmaker SkodaAuto is eyeing a small car bandwagon with a compact hatch to compete with Honda Jazz and other small cars from Ford and Toyota Motors, reports Economic Times.

The new car will be SkodaAuto`s entry-level car for India in the price band of Rs 3-5 lakh. It is likely to debut in 2010 when a large number of global carmakers will flood the market with their respective premium hatchbacks.

The company is also broadening its product portfolio with several new models. A sportier variant of the recently-launched Fabia (could also be a crossover or a notchback) will hit the market this year while the decision to debut Roomster and enter the lucrative SUV market is almost final.

The company has a strong focus on the SUV market and plan to introduce its compact SUV Yeti by the end of next year.

The company is looking at doubling sales in 2008 from the 12,000 cars it sold in 2007. While it has already delivered 1,000 units of Fabia to dealers against 3,000 confirmed orders, it is planning to scale up production when the demand increases.

SkodaAuto is planning to increase localization to 40-50% by 2010 from 15%, so that Fabia could be priced more aggressively. The car was launched under Rs 5 lakh to compete with the top-end variants of Maruti Swift and Hyundai Getz.