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In the U.S. the Scion brand is a division of Toyota Motor Corporation and targets Generation Y consumers who are young, modern, urban-minded shoppers on a budget. Utilizing guerrilla marketing tactics, negotiation-free “pure pricing” in addition to offering a multitude of limited editions with exclusive equipment and dozens of add-on accessories, the Scion brand has been well received. Since its introduction in 2002 the brand did not gain traction until 2004, but currently sells out quickly of its limited production runs. However, the trendy tuning orientated brand has no presence in Europe, but that all could change.

Based upon these spy photos of Scion’s latest model, the xD, caught undergoing mountain testing in the Austrian Alps, it appears Toyota is planning to introduce the brand to the European market, although it is uncertain whether it will be done under the Toyota or Scion name.

Provided that Toyota does not replace the engine used in the U.S., the xD would come with a 128 bhp 1.8-liter 4-cylinder and a five-speed manual transmission. Positioned as the replacement model of the Scion xA, the xD is basically a Toyota Yaris 5-door or, more specifically, a rebadged Toyota Ist from the Japanese market.

We have no information yet on a launch date but expect Paris Motor Show in early October 2008 as a likely event to present the European xD.