A prototype of the third-gen Hyundai i30 hatchback was seen recently by our spies performing testing rounds in the Alps.

It was less than a year ago when Hyundai introduced a mid-cycle facelift for the second generation i30, but it seems work on an all-new model is already in the advanced stages and most likely the car will be out towards the end of 2016 as a 2017MY. The prototype was dressed heavily in camouflage, but nevertheless we expect Hyundai's designers to take many styling cues from the recently introduced Elantra, so it should turn out to be quite an appealing compact hatch.

As far as the engines are concerned, expect the range to kick off with the recently introduced 3-cylinder 1.0-liter turbo with 100 PS & 172 Nm and 120 PS & 172 Nm taken from the facelifted Kia cee'd. We are not entirely sure, but Hyundai will probably replace the naturally aspirated 1.6-liter gasoline unit with their new 1.4-liter turbo that will have 142 PS & 242 Nm. There should also be a new i30 Turbo with the 1.6-liter turbo that could be upgraded beyond the current 186 PS & 265 Nm output.

The cream of the crop will be a range-topping i30 N, but details regarding what will power it are not available at this point, although some say it will have 300 PS and an all-wheel drive system. On the diesel side, the trusty 1.6-liter CRDi is expected to live on and could go through some changes for more power and even better fuel economy.

Hyundai could decide to unveil the third generation i30 hatchback and wagon about a year from now at the 2016 Paris Motor Show.

Third generation Hyundai i30 spied in motion testing in the Alps [video]