Rumour: Renault's new small car to be called Kayou

Renault has been solely riding on the Duster's success in India. Its mainstream cars such as the Scala and Pulse have not managed to create any impact, while its luxury offering Koleos and Fluence are market duds. In an attempt to generate volumes, Renault launched the Lodgy MPV earlier this month and a new budget hatchback will follow soon.

The hatchback which has been codenamed as the XBA is likely to be called the 'Kayou' as per a MotorOctane report. If true, this name will be a latest addition to the list of ridiculous automobile names, if any.

The Kayou will take on the Maruti Alto 800 and Hyundai Eon on one side and the Tata Nano Twist on the other. Renault hopes to penetrate the market with an aggressive pricing strategy, resulting in a low starting price. Going by the previous spy images, expect Renault to undertake several cost-cutting measures such as manual ORVMs, thinner profile tyres and 3-wheel lug nuts, to name a few.

This product is in its final testing stage at the moment. It will be sold as a Dacia product in East European and African markets. Our previous report had stated that the launch of this small car is likely to be in December 2015. This car is likely to roll out from the Renault-Nissan Alliance plant in Chennai.