Land Rover will debut its newest and smallest model at the Paris Auto Show later this year based on the LRX concept first shown at the Detroit Auto Show back in 2008. Originally thought to be a 2011 model, Automotive News is reporting that it will arrive in late 2011, likely as a 2012 model year vehicle.

According to an older press release released by the automaker the upcoming LRX (if that is in fact its name), will be, “the smallest, lightest and most efficient vehicle the company has ever produced.”

While on one at Land Rover has confirmed as much, it is expected to be a full hybrid model, possibly using a diesel engine when it launches for the U.S. market. Diesel hybrids aren’t offered much because of the expense involve in both hybrid and diesel technology, but its likely that Land Rover sees its customers as the sort who could afford to pay extra for impressive fuel economy.

It’s also not clear if the LRX will be a fully off-road capable SUV or use a car-like crossover platform.

[Source: Automotive News via Autoblog]

Land Rover is now poised to bring a new entry-level crossover model to market thanks to a grant from the British government. The U.K. government has confirmed a £27 million ($37.9 million) cash infusion towards a vehicle that would be based on the Land Rover LRX Concept.

The LRX was first displayed at the North American International Auto Show (NAIAS) in Detroit in 2008. The concept car features a 2.0-liter turbodiesel hybrid powertrain, allowing it to get 30 percent better fuel-economy over comparably-sized SUVs and crossovers.

The stylish LRX may be more compact that other Land Rover vehicles – measuring 5.9-inches less in length than the LR2/Freelancer and 8.1-inches lower in height – but it will still be a premium vehicle.

The production model would be the lightest and most fuel-efficient model Land Rover has ever produced.

When the concept was first shown in Detroit, Land Rover’s managing director, Phil Popham said that, “The LRX concept delivers the powerful message that we are as serious about sustainability as we are confident about the continuing relevance and desirability of our vehicles. LRX is in every respect a Land Rover, but it’s a very different Land Rover.”

“LRX has unmistakable Land Rover design and the breadth of capability that you’d expect from our vehicles. But it carries those essentials into a segment where the brand has never been before, and with a proposed level of efficiency that would make it one of the cleanest vehicles in its class. It is Land Rover’s way of affirming the brand’s responsible approach to future product development.”

The final decision on the project has yet to be made by Land Rover on the new model and while the $37.9 million grant helps, the expected cost of bringing this new vehicle to market is $560 million. Land Rover is expected to announce its decision to go ahead on the project later this year at the company’s Halewood plant.

Official release after the jump: