Renault will launch an entry-level version of its Twingo supermini this month, priced £7,500.

The Twingo Extreme has been priced to undercut the Fiat 500 and Suzuki Swift while competing with the Daihatsu Sirion and Citroën C1. Powered by a 60bhp 1.2-litre engine, the new model is part of Renault’s eco2 line-up.

Renault claims it will achieve 50.4mpg on the combined cycle. However, its emissions rating of 132g/km is outside the proposed congestion charge exemption band, unlike the Fiat and Daihatsu rivals.

Standard equipment includes remote central locking, sports body- styling, and electric front windows.

Dealers will be encouraged to up-sell the personalisation opportunities, with exterior decals such as racing stripes.