Figo, Beat and Polo are some names that have made their India debut in the small car segment over the past few months. However, the segment is expected to see more competition in the coming time.

With the Renault-Nissan and Daimler's alliance coming into play, experts believe that the automaker will be developing the next generation of Renault's Twingo, a new four-seater Smart (a Daimler model) and also a successor to the current two-seater of the same model in the Indian market.

Notably, Twingo is a 1.2-litre hatchback sold in Europe amongst other countries and its arrival in the Indian market will add a lot of noise to the small car segment.

In fact, a top executive of Renault India confirmed the development by explaining, "It is likely that some years down the line, we would manufacture the high-end small cars, like the Twingo, from our plant in Chennai as we develop India as our manufacturing hub for small cars."

As announced in the global deal, Renault-Nissan will pick up 3.1% stake in Daimler while Daimler will acquire 3.1% each in Renault and Nissan.