Renault Twingo no-go for Oz

Despite earlier indications it would be made available here, Renault Australia has now made it clear the cheeky new-generation Twingo city-car is unlikely to be offered in Australia.

The main hurdle facing the 3.6-metre Twingo, which is now on sale in left- and right-hand drive markets across Europe, is price.

Renault Australia appears to have been unsuccessful in its bid to establish a business case for the bold rear-engined, rear-wheel drive micro, which would not only have to be cheaper than its smallest existing model, the Clio (from $16,790), but competitive with leading micro-cars such as the Mitusbishi Mirage ($12,990), Nissan Micra ($13,490) and Suzuku Alto ($11,790).

"We'd love to see Twingo here but what we're not prepared to do is try to push a business case that doesn’t work," Renault Australia Managing Director Justin Hocevar told motoring.com.au.

"Unless we can get the car here at the right price, that we know we can deliver the right level of volume, that it's viable for us and dealers, unless that makes sense, we won't do it."

Hocevar said that despite its mould-breaking drive configuration and playful design, the Twingo would have to be competitive in the price-sensitive micro-car segment.

"The level of activity that goes on in that (micro-car) A-segment, it's really between $13K and $15K drive-away. It's highly competitive so just because we've got a great car and some unique selling points, I don’t think it can command a premium that would necessarily work," he said.

Hocevar pointed to the failure of Volkswagen’s attempt to sell an upmarket micro-car in Australia as evidence of the Twingo’s difficulty here. The VW up! showed early promise but the $13,990 car -- VW’s most affordable car yet -- has since been axed here as sales in the first three months of 2014 crashed to unsustainable levels.

"What's going on with one of our competitor brands from Germany... I think that's probably a good indicator [of where the micro segment is] -- particularly when currency is the way it is at the moment, and the competitiveness of that segment... vehicle prices aren't going up in this market," he said.

Volkswagen pulling the pin on the up! in Australia didn’t affect Renault’s decision, said Hocevar, but was "an affirmation of what we had already decided".

The latest French runabout was launched at the 2014 Geneva motor show, powered by a compact and economical rear-mounted 66kW/135Nm 900cc three-cylinder turbo-petrol engine hidden beneath the boot floor. It also boasts one of the tightest turning circles of any production car at 8.65 metres, making it a versatile city vehicle.

The petite hatch still manages to offer a decent 219 litres of boot space and also features 50/50-split folding rear seats, allowing for large objects measuring up to 2.2 metres to be loaded into the car.

Hocevar says currency fluctuations and increasingly low prices in the micro-car segment make it difficult to import quality European products to Australia, but hinted that a vehicle like the Twingo may be offered here in the future.