Tesco Unveils New Family Car

This is the first teaser shot of a forthcoming family car set to challenge the budget brands -but not from any of the major manufacturers, rather supermarket giant Tesco. The profitable supermarket chainhas had its fingers in several pies for a number of years, even moving into car sales in 2010. That venture folded due to a lack of supply that this model could finally address.

Tentatively dubbed Mercado, details are somewhat sketchy at present. Slated to start at around 11,500, theMercado will come in saloon and estate bodies and feature trim levels mimicking the brand's existing product ranges - from the entry level Value with manual air conditioning and a cloth interior to the top-spec Finest. There is reportedly a Technika optional extra pack which enhances the in-car entertainment and satellite navigation systems.

The brand tie-ins don't end there either. Tesco is reportedly considering givingMercado buyers a fuel discount at its filling stations in perpetuity along with reserved store parking - and you'll get a hefty11,500 Clubcard Points with every purchase, bringing down your weekly bills for quite some time. With its own insurance arm, Tesco is hinting at preferable rates for customers buying into its new car brand too.

While it stands to be one of the cheaper saloons on sale, theMercadowould find itself pitched up against the Skoda Rapid (and Spaceback estate), SEAT Toledo and SEAT Ibiza ST - no small challenge in such a competitive segment.

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