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Dacia challenges low-cost Chinese EVs with prototype 15,000 euro mini-car

Published by Global Banking & Finance Review

Posted on October 6, 2025

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· Last updated: January 21, 2026

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Dacia challenges low-cost Chinese EVs with prototype 15,000 euro mini-car
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By Gilles Guillaume MEUDON, France (Reuters) -Renault's low-cost brand Dacia on Monday unveiled a prototype electric mini-car that could cost less than 15,000 euros ($17,625), potentially providing a

Dacia Unveils Affordable Electric Mini-Car Prototype Under €15,000

By Gilles Guillaume

MEUDON, France (Reuters) -Renault's low-cost brand Dacia on Monday unveiled a prototype electric mini-car that could cost less than 15,000 euros ($17,625), potentially providing a competitive alternative to low-cost Chinese electric vehicles.

The "Hipster Concept", which could go into production if the European Union agrees to create a new small car category, is tiny, only 3 metres (9.84 ft) long and weighing less than 800 kg (1,763.7 lb). The shortest car on the market in Europe today, Leapmotor's T03 city car, is 62 cm longer.

The Hipster is "a concept of Dacia's bold vision for local, affordable and everyday mobility," said Dacia's CEO Katrin Adt, who recently moved from Mercedes-Benz. "If the opportunity to mass produce it arises, we are ready."

CAR SIMPLIFIED TO SLASH COSTS

The boxy three-door Hipster's maximum speed would be around 90 km per hour (55.92 mph) and it would have a range of 150 km. According to data from Dacia, the average car travels under 40 km daily at an average speed of 56 km per hour.

Dacia has also simplified the Hipster to slash costs: it has canvas seats, a bare minimum of electronics, manual windows and straps to open the doors instead of handles. It could come in one colour, like the grey-blue of the prototype.

Renault and Stellantis have spearheaded a campaign for a new EU small car category - inspired by the Japanese Kei Cars - that would come with fewer mandatory features than large cars, particularly in terms of safety.

Proponents argue that an urban or suburban car can do without many of these features while remaining safe, and that this is the only way to massively cut weight and price.

Dacia estimates the average new car price rose 63% between 2001 and 2020, and that European buyers need more affordable models. But a new small car category, on which talks are underway, would likely come with conditions.

"The regulations will also surely require the vehicle to be produced in Europe," David Durand, design director of the Dacia brand, told Reuters. "We also need to develop the industrial model that goes with it."

($1 = 0.8511 euros)

(Reporting by Gilles Guillaume; Writing by Nick Carey; Editing by Jan Harvey)

Key Takeaways

  • Dacia unveils an electric mini-car prototype under €15,000.
  • The Hipster Concept is only 3 meters long and weighs under 800 kg.
  • Dacia aims to compete with low-cost Chinese electric vehicles.
  • The car features simplified design to reduce costs.
  • A new EU small car category could facilitate production.

Frequently Asked Questions

What is an electric vehicle?
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of gasoline or diesel. EVs use electric motors and batteries to operate, offering a more sustainable transportation option.
What is a prototype?
A prototype is an early sample or model of a product used to test a concept or process. It helps in evaluating the design and functionality before mass production.
What is the significance of regulatory approval in automotive production?
Regulatory approval is crucial in automotive production as it ensures that vehicles meet safety, environmental, and performance standards set by authorities before they can be sold to consumers.

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