Subaru will debut a compact tall station wagon called the Trezia at the Geneva auto show in March.
The Japanese automaker said the Trezia will help the company to meet the increasing demand for smaller and environmentally friendly cars in Europe.
The Trezia will be powered by a 1.3-liter gasoline engine or a 1.4-liter turbocharged diesel engine. The diesel engine will have CO2 emissions of 113 grams per kilometer.
"The model provides the benefits of the Subaru wagon-style in an overall body size of less than 4 meters in length," Subaru said in a statement.