Sector: Supermini Price: €9,600-€14,900 (ex-taxes) Range: 3.2-5.5l/100km CO2: 83-127g/km

The ongoing European economic problems have focused the minds of the motor industry and none more so than those worst affected by the recession. As we report elsewhere, Renault is building up its Russian business to meet the demands of an expanding market on Europe’s doorstep and the company also has the Dacia brand to help build its customer base, particularly in emerging markets.

Renault has sold 11.5 million Clio models over the past 22 years and the latest model to bear the name emerged at the Paris Motor Show last year. It offers bold new looks and some new engines too, the first Renault product to be fitted with the company’s new 898cc three-cylinder turbocharged petrol engines, initially in TCE 90hp form. Other engines are familiar from other small Renault and Dacia models, in the shape of the 1.2-litre 75hp engine and Renault’s long running 1.5-litre common rail diesel, delivering 90hp.

This is the first Renault to be produced since the arrival of Renault design chief, Laurens van den Acker, and the design looks more purposeful than the previous Clio, if losing something of the previous model’s elegance in the process. As before, there are minimal overhangs to maximise the wheelbase and space inside. The car is lower and wider than its predecessor with wider front and rear track, allowing the body sides to be sculpted, adding visual interest and improving the aerodynamic shape. Renault says it has also reduced weight by around 100kg.

The car has a better air of quality about it than its predecessors, something that Renault has been aware that it must address, and first impressions suggest that things have improved. The interior looks well put together with good quality materials.

The engine range is largely familiar – where the 1.2-litre petrol engine and the dCi diesel are concerned. Renault says that the diesel has been extensively re-engineered to improve torque and efficiency. The engine was slipping behind other diesel rivals so these are good moves. 90g/km CO2 emissions and 3.2l/100km look like a good start for low running costs while 30,000km service intervals should also help. The service interval applies to all engines.

The little diesel certainly seemed more refined than previously and offers a good blend of performance and economy. But it was the TCe 90 petrol engine that impressed most. We were impressed with the smoothness of Ford’s 1.0-litre three-cylinder petrol engine, but Renault’s smaller still 898cc engine appears to set new standards of refinement while delivering an even spread of torque, making it a very impressive little engine. It can propel the Clio as briskly as you would expect from any small 90hp engine. The advantage of turbocharging is that it produces peak torque lower in the rev range so it seems quieter and smoother in the process. Most three-cylinder engines produce a background rumble – part of the engine’s character, but it is hard to spot the difference between this engine and a four-cylinder unit. It’s even more remarkable when you consider just how small the engine is.

The car seems to offer enough space for four adults, while the boot offers 300 litres with the rear seats in place and 1,146 loaded to the roof with the back seat folded.

The car seems generously equipped even in basic trim in the UK with hill start assist, ESC and traction control, cruise control and a speed limiter, plus six airbags, electric windows and door mirrors, bluetooth connectivity, keyless entry and ignition.

Verdict:

A more "muscular" car than its predecessor, and it appears that Renault has successfully tightened up quality. Performance and refinement for the TCe both impress.