RENAULT is set to ditch sales of new petrol and diesel powered versions of its Megane range as it reveals a petrol-electric hybrid version of the popular hatchback.

The hatch will be available from September and will join the Sport Tourer estate Megane hybrid already on sale and its new engine is more powerful than the outgoing petrol and diesel versions and claims official economy of 235mpg and CO2 emissions of a modest, business-use tax efficient 28g/km.

Customers will be able to choose from two trim levels - the Iconic E-Tech Plug-In Hybrid 160 Auto and the sporty R.S. Line E-Tech Plug-In Hybrid 160 Auto.

Both versions feature an efficient 1.6-litre petrol engine complemented by a 65hp electric motor, the resulting 160hp drivetrain enabling a 0-62mph time of 9.4 seconds and a top speed of 114mph.

Business customers also benefit from the Megane Hatch Plug-In Hybrid qualifying for a Benefit-In-Kind rate of only 11 per cent and £0 VED costs for the first year.

Both trim levels feature a standard specification which includes an electronic parking brake, front and rear electric windows, cruise control with speed limiter, 10-inch TFT driver's display, Eco Mode, EV mode button, MULTI-SENSE with three driving modes and eight ambient lighting colours, and a hands-free key card.

Standard safety equipment includes front and rear parking sensors, Hill Start Assist and the Visio System that incorporates lane departure warning, traffic sign recognition, and automatic high/low beam.

The Iconic trim level stands out with such features as 16-inch ‘Impulse' diamond-cut alloy wheels, leather steering wheel, and frameless rear-view mirror. Its EASYLINK navigation system ensures customers are well connected with two USB ports, Bluetooth, and smartphone integration including Android Auto and Apple CarPlay that are accessible through its seven-inch touchscreen.

The R.S. Line version gains exclusive body-coloured R.S. Line bumpers, 17-inch ‘Monthlery' diamond-cut alloy wheels, and an R.S. leather steering wheel. Safety is further enhanced with the fitment of the Advanced Emergency Braking System (AEBS), rear parking camera and hands-free parking, while the EASYLINK navigation system has a larger 9.3-inch touchscreen.

The Megane Hatch Plug-In Hybrid combines a 1.6-litre petrol engine with a 1.2kW lithium-ion battery and two electric motors, together with the automatic gearbox that features in all other E-Tech models. In operation, it starts the vehicle in 100 per cent electric mode, significantly reducing the gap in acceleration during gear changes. This means a smoother, more refined drive plus better performance, says Renault.

Further details and pricing will be announced nearer to the on-sale date.