Mercedes is reportedly considering a lineup of entry-level models that would slot below the A-Class and wear the X-Class moniker.

Envisioned to battle BMW's front-wheel drive vehicles, the X-Class will reportedly be launched in 2018 and ride on the next-generation Renault Clio platform. In order to keep costs down, the X-Class will be heavily influenced by Renault-Nissan. This will probably strike fear into fans of the tri-pointed star but the model is slated to have unique styling and a "decent" interior with high-tech options.

Power will reportedly be provided by a 1.0-liter three-cylinder engine as well as 1.5-liter four-cylinder engine. Little else is known about them but they are rumored to have direct injection and turbocharging.

The X-Class will likely be built in a "low-wage" country and have a base price of less than €20,000 ($25,960 / £17,245). Crossover and sedan / hatchback variants are rumored and production could hit 100,000 to 150,000 units annually.

Note: a render of the rear view can be seen at

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