Renault Kayou (Renault XBA) starts testing in Europe - Spied

Could also be badged a Dacia.

Renault has started testing its entry-level small car which is reported to be called Renault Kayou in Europe. The test mule (you can view the spyshots in the source link below) looks identical to the prototypes caught testing in India, which is where the small car will have its world premiere on May 20.

Renault announced that the car (codenamed XBA) will be a global model, and early media reports suggest that it will be sold in Europe with a 5,000 euro (INR 3.61 lakhs) pricetag. Production for the European market may take place in a factory in Tangier, Morocco. Apart from wearing the Renault 'Lozenge', reports state that a Dacia version of the car could also be made.

For the Indian market, Renault have confirmed a sub-4 lakhs price, though other details remain under wraps. It is expected to be powered by a 0.8-liter three-cylinder petrol engine matched to a 5-speed manual and automated manual transmission.

Also read: Renault Fluence facelift - Review

Underpinning the Kayou will be Renault-Nissan's modular CMF-A platform, an architecture which will also spawn Datsun's entry-level small car for India codenamed 'I2'. Renault have ruled out a diesel variant for the Kayou though.

Rivals: Tata Nano variants, Hyundai Eon, Maruti Alto, Datsun redi-Go
Expected Price: INR 3-4 lakhs, ex-Showroom
Launch date: May 20, 2015 (unveiling)

[You can view the European spyshots at Paultan]