2016 Renault Megane first drive review

The Renault Megane has always been a bit player in the popular small car segment.

Over its first three generations, it hasn't had a legitimate reason to challenge the big players, held back by elements such as premium pricing, poor levels of standard equipment, restricted powertrain options, left-of-centre styling and a general lack of awareness that it even existed.

But all that changes with the fourth-generation Megane hatch that arrives in Australian showrooms this month as Renault finally has a small hatch that ticks plenty of boxes.

For starters, it is available as a conventional five-door hatchback – with sedan and wagon variants set to join the range mid 2017 – that looks good on the outside, is spacious and well equipped on the inside, has perky yet fuel efficient engines with modern dual-clutch transmissions and is competitively priced with above average ownership incentives at the dealership. On paper, there is plenty to like about the new Megane.

It is offered in four model lines starting with the entry-level Life that costs $22,490 (plus on-roads) with a six-speed manual transmission or $24,490 (plus on-roads) with a seven-speed dual-clutch transmission. Even in its most basic trim level, the Megane comes equipped with keyless entry and push-button start, has dual-zone climate control, automatic wipers and headlights, a reverse camera with rear parking sensors and an eight-speaker audio system with Bluetooth connectivity.

Step-up to the next-level Zen that costs $27,490 (plus on-roads), and is only offered with the seven-speed automatic, and it picks up LED daytime lights, Renault's R-Link 2 infotainment system with sat nav, front parking sensors and the Life's 16-inch steel wheels are replaced by same-size alloys.

The mid-level GT-Line is expected to be the most popular choice. At $32,490 (plus on-roads) it gets a multi-mode drive selector, sunroof, blind spot warning, Alcantara-trimmed sports seats, ambient interior lighting and 18-inch alloy wheels above the Zen's standard equipment.

All three mainstream variants are powered by a 1.2-litre turbo charged four-cylinder petrol engine that produces 97kW and 205Nm and has a claimed average fuel consumption of 5.5-litres per 100km with the manual transmission and 5.6L/100km when fitted with the automatic.

The range topper is the Megane GT that features the 1.6-litre turbo charged four-cylinder from the Clio Renault Sport with power outputs lifted to 151kW and 280Nm, suspension tuned by the French brand's performance division and a unique four-wheel steering set-up that improves its handling. Renault claims the GT, which comes fitted with a launch control mode, can accelerate from 0-100km/h in 7.1 seconds and has a claimed average fuel consumption of 6.0L/100km.

It costs $38,490 (plus on-road costs) and is visually identified from the GT-Line by a blacked-out grille, exclusive honeycomb inserts, a twin-exhaust system in the rear diffuser, larger 18-inch alloys and a spruced-up interior with sportier seats and contrasting blue stitching on elements such as the steering wheel and gearlever.

Both the GT-Line and GT models can be optioned with a larger portrait-style 8.7-inch touch screen as well as full LED headlights while the GT-Line can be fitted with the GT's 18-inch alloys as well.

All the Megane models are physically larger than the previous generation, riding on a new platform that is 57mm longer in overall length, has an extra 29mm in the wheelbase and wider front and rear track widths and yet sits 25mm lower in its stance. The bigger dimensions help liberate more interior space, with Renault claiming it has 20mm additional rear legroom and sets the class benchmark for shoulder width for both front and rear occupants while also offering a generous 434-litres cargo carrying capacity that can expand to 1247L when the rear seats are folded flat.

They are all covered by a five-year warranty with roadside assistance and capped price servicing and come with six airbags and a basic suite of driver aids. Renault claims an update that will make automated emergency braking available to Australian models will arrive sometime in 2017.

So what's not to like? First of all, the Life model wasn't available during our preview drive in the Northern NSW hinterland this week so we can't judge what it feels like in its most basic set-up. But, apart from having alloy instead of steel wheels, the Zen is mechanically identical and feels reasonably composed as a package.

The 1.2-litre engine won't win any green light grands prix but it punches well above its weight with a linear power delivery, decent mid-range pulling punch and is nicely calibrated to the well-sorted seven-speed automatic. It is noticeably more sluggish in the Eco mode though, which dulls the throttle response and withholds the transmission from quickly downchanging under heavy acceleration.

The steering, however, is excellent with positive feedback, good on-centre stability and a linear weight across the ratio. The suspension also offers a reasonable balance between sure-footed handling and overall comfort and withstood some of Australia's patchiest, bumpiest roads without too much histrionics. However, the challenging back roads behind Byron Bay did showcase the rear beam-axle suspension's limitations, with the occasional mid-corner bump unsettling the back-end, and the coarse surface highlighting road noise entering the cabin.

The GT-Line naturally had a little more grip thanks to its larger tyres, and had a more sporting character thanks to the addition of a sport setting in its multi-mode drive selector, and the extra side bolstering on the front bucket seats provided more support in the bends.

But it is the GT that is the pick of the bunch, not just for its more powerful engine but the Renault Sport tuning of the suspension and the four-wheel steering system makes it more fun to drive when you want it to be and more comfortable in every other scenario. Despite having larger wheels, the GT manages to soak up bumps better and is more compliant than the more affordable variants. And the rear steering – which is a first in the small car class and works only in the Sport setting – makes it more agile at slower speeds and more stable when turning in to faster corners.

The engine is also perkier, revs willingly to its 6500rpm cutout with a stronger mid-range surge but never feels grunty enough to overcome the front tyres with torque steer or wheelspin. It also sounds pretty good at higher engine speeds even though the soundtrack is digitally amplified through the audio system.

All in all, the Megane GT doesn't have the outright grunt or hard-core character of genuine hot hatch rivals like the Volkswagen Golf GTI or Ford Focus ST, but it is the warmest of the warm hatches on the next rung down the ladder and certainly provides a solid platform for the next-generation Megane RS to resume its place as the enthusiasts' choice when it arrives within the next 18 months or so.

As for the everyday aspects, the Megane – in any spec – is a well-rounded small car with good space, comfortable seats, a large boot and adequate small item storage within the cabin. The dash is a bit hit and miss, depending on the specification. The general ambience is of good quality thanks to soft touch materials on the dash and, overall, it feels well built, but the flat panel designed to house the large, tablet-style screen in the top models looks empty without it, the digital speedo disappears from the digital dash in the GT-Line and GT models when it is in comfort mode (when presumably you'd need it most, driving around the city) and there are still some odd ergonomics like the auxilliary audio and cruise control switch behind the steering wheel.

But the Megane is more convincing and more conventional than ever before, and steps-up from a quirky alternative to a genuine mainstream alternative.

2016 Renault Megane pricing and specifications

Price: From $22,490 (plus-on-road costs)

On-sale: Now

Engine: 1.2-litre four-cylinder turbo petrol

Power: 97kW at 4500rpm

Torque: 205Nm at 2000rpm

Transmission: Six-speed manual/Seven-speed automatic, FWD

Fuel use: 5.5L/100km (Man)/ 5.6L/100km (auto)

2016 Renault Megane GT price and specifications

Price: $38,490 (plus on-road costs)

On-sale: Now

Engine: 1.6-litre four-cylinder turbo petrol

Power: 151kW at 6000rpm

Torque: 280Nm at 2400rpm

Transmission: Seven-speed dual-clutch automatic, FWD

Fuel use: 6.0L/100km

• For all the latest information, visit our Renault showroom.