MEUDON, France: Renault's low-cost brand Dacia unveiled a prototype electric city car priced below 15,000 euros (US$17,625), aiming to counter a wave of inexpensive Chinese EVs flooding Europe.

The three-metre-long "Hipster Concept" weighs under 800 kilograms and could become the continent's smallest production car if the European Union approves a new vehicle category for ultra-compact city cars. Leapmotor's T03, the shortest EV currently on sale in Europe, is 62 centimetres longer.

Dacia CEO Katrin Adt, who joined from Mercedes-Benz, described the Hipster as "a concept of Dacia's bold vision for local, affordable and everyday mobility."

"If the opportunity to mass produce it arises, we are ready," she said.

The Hipster is designed to be radically simple and cheap. The box-shaped three-door car has canvas seats, manual windows, minimal electronics, and door straps instead of handles. Its top speed is around 90 kilometres per hour (56 mph), and its estimated range is 150 km, well above the 40-km average daily distance driven in Europe, according to Dacia data.

Adt said the stripped-down design reflects the company's commitment to making EVs attainable again. Dacia estimates the average price of a new car in Europe rose 63 percent between 2001 and 2020, pricing many buyers out of the market.

"The regulations will also surely require the vehicle to be produced in Europe," Dacia design chief David Durand told Reuters. "We also need to develop the industrial model that goes with it."