Mercedes X-class is going to compete with BMW's Mini

Mercedes-Benz is planning to start a subcompact vehicle range with the support of Renault-Nissan, a German magazine informed.

The price for the models, badged as X-class, will be below 20,000 euros and compete with BMW's Mini autobrand and the Audi A1, AutoBild announced. The vehicles are going to fill a gap between the Smart brand and the Mercedes A- and B-class cars.

Daimler, Mercedes' parent company, rejected to comment this information.

AutoBild stated that the first car will be an SUV-styled crossover that can become a competitor to the future Audi Q2. It would be designed on the base of the Renault Captur vehicle and could be launched in 2018.

The next car will be a broad subcompact minivan that could be a small version of the Mercedes B class. It will be designed on the base of next-gen Renault Clio subcompact hatchback.

Having five years to construct the vehicles, Mercedes will try to design a brand new car and will not simply copy one of Renault-Nissan's current models, the report informed. Mercedes is selling the Citan car-derived van, which is designed on the base of the Renault Kangoo.

Each model will be equipped with three- and four-cylinder gasoline and diesel powertrains.

Auto Bild told that Mercedes considered first shrinking and eliminating the A class, in order to produce the crossover, but changed its mind because of financial issues. The next-gen rear-engine Smart was also supposed to be a base for the project, but its architecture was not convenient enough.