Renault's Dacia brand will not join Europe's minicar segment, Renault Chief Operating Officer Carlos Tavares said.
The segment is gaining in importance as the region's economy slumps and customers downsize to cheaper smaller cars but Tavares said he is happy with the Dacia range as it currently stands.
"What I want to avoid is to have too many cars," he told Automotive News Europe.
Tavares said marketing costs would become too high if Dacia expands its lineup. "We need to be communicating the brand rather than fragmenting our marketing dollars on too many models. Dacia's brand awareness is still quite low."
Reports in the French and German media have said Dacia plans to build minicar to compete against cars such as the Fiat Panda, and VW Up.
The most recent report in Germany's AutoBild said the brand will launch a five-door minicar in 2015 priced about 5,000 euros ($6,450). The car would combine the technical underpinnings of Renault's Twingo subcompact with the design styling of Dacia's Sandero hatchback.
The minicar would have a longer wheelbase than the Twingo to offer more space for passengers, along with 250 liters of luggage space, AutoBild said.