Mercedes-Benz is reportedly working on a competitor to BMW’s Megacity vehicle. According to reports coming out of Europe, Mercedes-Benz has kicked of styling studies into a range of new alternative-drive city vehicles that will compete with the line of BMW Megacity and BMW Project i vehicles.

The Mercedes-Benz Megacity competitor is currently being styled at the company’s Yokahama-based studio in Japan under the direction of Holger Hutzenlaub.

The model is thought have been conceived to sit on the rear-engined underpinnings of the upcoming second-generation Smart ForFour.

One of the first vehicles from the Mercedes-Benz Megacity project will be the Smart escooter, a concept version of which was revealed at the 2010 Paris Motor Show.

- By: Zain Haq

Source: AutoCar