Earlier this year, the Jaguar-Land Rover Group, now owned by India's Tata Group, secured a UK Government grant of up to £27 million ($44.4 million - €30 million at today's exchange rates) to help aid the development of the LRX.
"The production of a small Range Rover model is excellent news for our employees, dealers and customers," said Phil Popham, managing director of Land Rover.
"Feedback from our customer research also fully supports our belief that a production version of the LRX Concept would further raise the desirability of our brand and absolutely meet their expectations," Phil added.
Gerry McGovern, Land Rover design director said: "The new vehicle will be a natural extension to the Range Rover line-up, complementing the existing models and helping to define a new segment. It will be true to the concept and have many recognizable Range Rover design cues including the signature clamshell bonnet, the floating roof and the solid 'wheel-at-each-corner' stance."
Land Rover said that more details of the new small Range Rover will be released next year.