Renault Kwid, which would come in four variants and two options, is priced between Rs 2.57 lakh and Rs 3.53 lakh (ex-showroom Delhi).
While Maruti Alto 800 is priced between Rs 2.52 lakh and Rs 3.72 lakh, Hyundai Eon is priced between Rs 3.10 lakh and Rs 4.27 lakh (ex-showroom Delhi).
"We are not launching a car but a new era. With Renault Kwid we are launching a new benchmark for automotive industry. No car can be compared to Kwid at this point in time," Renault India Operations, Country CEO and Managing Director, Sumit Sawhney, said.
He further said that the company has taken the localisation level to 98 per cent in Renault Kwid, the highest ever by an auto manufacturer in India.
The company claims that maintenance worries can be left behind as the compact hatchback's maintenance cost would be around 19 per cent less than the market leader.
The car comes with various features including class leading ground clearance of 180 mm and a boot capacity of 300 litres with a seven-inch touchscreen Media Nav system and a digital instrument cluster. Its boot space capacity can be expanded from 300 litres to 1115 litres.
Renault Kwid is powered by all-new 0.8 litre engine delivering mileage of 25.17 kmpl, making it the country's most fuel efficient petrol car.
Developed with an investment of around Rs 3,000 crore, the SUV-shaped small car will be powered by an 800cc petrol engine. The company is looking to make India a regional hub for exporting the new car.
India is the first market where the company has launched the hatchback. Renault plans to roll out the model across various markets globally.
Renault has set a target of cornering 5 per cent market share in India and the new car will play a big role in it.
Previously, Renault's presence in the hatchback segment was limited to Pulse with a starting price of Rs 5.03 lakh (ex-showroom Delhi).
With PTI inputs