May 17 (Reuters) - Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo car, two sources familiar with the situation said, a setback for the EU carmakers' efforts to fend off Chinese rivals with cheaper cars.

The collapse of negotiations would mean the German carmaker will now have to go it alone in developing its own affordable EV. Renault will continue designing its own electric Twingo, scheduled to hit the market in 2026. (; editing by Sharon Singleton)