The UK is the biggest market in the world for Renault's specialist high-performance cars – even bigger than France.

RenaultSport in Dieppe builds the specially-engineered products and up to now had offered an outrageous front-wheel drive Clio 182bhp model (launched as a 172bhp version in 2001) and an even more outrageous 255bhp mid-engined rear-wheel drive Clio with a 3.0-litre V6 engine.

Now it's the turn of the Megane. Instead of a frantic pocket rocket or a genetically-modified, uncompromising two-seat rear-drive monster, the Megane is a practical hatchback with a 225bhp turbocharged kick.

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Between 1998 and 2002, the market for high-performance lower-medium hatchbacks in Europe grew from 5,000 units to 30,000, thanks to an increase in the number of vehicles offered, many of them with their own dedicated identity.

The Megane RenaultSport is aimed at buyers of cars including the 200bhp Honda Civic Type R, the 250bhp Alfa Romeo 147 GTA, the 225bhp SEAT Leon Cupra R, the 225bhp Subaru Impreza WRX and the 240bhp Audi A3 3.2 quattro, as well as the discontinued Ford Focus RS and the Volkswagen Golf R32.

With an £8,000 price variance between the least expensive and most expensive rivals, Renault has put the Megane firmly in the middle, with a price of £19,500 on-the-road for the three-door and £20,000 for the five-door.

But Renault believes the Megane's high equipment levels will steal sales from its established rivals, with 18-inch alloy wheels, a dashboard-mounted six-CD autochanger, cruise control, air conditioning, part-leather seats, automatic headlamps and a tyre pressure monitor.

Renault has gained a strong reputation for safety over the past few years, with many of its new models appearing at the top of the Euro NCAP crash test charts and offering more five-star models than any other manufacturer.

The company says it does not want to harm its reputation and, while it is possible to switch off the electronic stability programme (ESP), it automatically re-engages above 30mph.

The ESP system works alongside traction control and an understeer control system to ensure wheelspin and skidding are kept to a minimum. There is also a speed limiter, which enables the driver to select a maximum speed that the car will not exceed.

The front suspension layout has been modified from a standard independent MacPherson strut arrangement to reduce the risk of torque steer – when the front wheels slip and affect the steering under hard acceleration as a result of the significant pulling power of the engine, a trait in powerful front-drive cars.

Renault is also proud of the fact that is has delivered such power with modest fuel consumption – 32.1mpg on the combined cycle equals that of the SEAT Leon Cupra R, which has the same power output but less torque, and beats the less powerful Honda Civic Type-R on 31.7mpg.

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The company is also promising other factors to reduce operating costs, such as 18,000-mile service intervals. In addition, the Megane RenaultSport is designed to absorb most impacts up to 10mph. In a low-speed front-end crash, the front bumper is designed to collapse beneath the bonnet and disconnect from the wings, while the radiator mountings pivot to ensure the cooling system remains intact.

Eight airbags are fitted as standard, with side airbags front and rear and full-length curtain airbags as well as twin front airbags.

There are five paint colours, while the interior comes in dark grey leather and charcoal cloth with light grey stitching. A no-cost option is orange stitching and matching seatbelts – quite a combination with the eye-catching Inferno orange paint.

Behind the wheel

IT must have been a difficult task to take the mildly eccentric Megane styling and turn it into something more purposeful.

The final product is not a complete success in this department, but it appears to have more road presence than the standard Megane.

The new front bumper is deeper and has a mesh grille over the air intake, while the front foglamps are housed in little extensions in the bumper plastic which is a nice touch.

At the rear, the twin exhaust pipes appear at the centre – like the Clio V6 and 182 – and the car is rounded off with eight-spoke 18-inch alloy wheels.

Unlike the standard Megane, there are no bits of grey plastic outside – all bumpers and rubbing strips are finished in the body colour. The interior stands out from the ordinary Megane thanks to sports seats, aluminium pedals and racier instruments. It carries over the Megane's slush-moulded dashboard and soft-touch plastics, giving the interior an overall feeling of quality.

While fitted with electric power steering like the standard Megane, it is much weightier and more communicative than on the less speedy versions.

It feels rather more sophisticated than other cars in this category. There is no raucous edge to the exhaust note, the car is easy to drive at low speeds, the engine is quiet and the whole driving experience is refined.

The ride, while firm, isn't too harsh. The brakes are powerful without being too grabby and the sports seats are comfortable.

Driving begins to get interesting from 2,000rpm, when the effects of the turbo can be felt for the next 4,000rpm. Acceleration is brisk, although the Nissan-sourced six-speed gearbox is not as co-operative as some in this class.

During our two-day test, we visited a racetrack at Albi, near Toulouse, for some high-speed driving. It turned out to be a real challenge for the car as the track was being soaked in a sustained deluge with no sign of it stopping.

There were five laps in total – one familiarisation lap behind a pace car, then three flying laps, followed by a slowing-down lap.

The standard tyres have been designed for maximum surface water dispersal and they allow the car to be steered under hard acceleration without too much wheelspin corrupting the experience.

When inexperience and adrenalin result in too much speed being taken into a corner, the ESP steps in to reduce power and help haul the front end on to the desired course.

Impressively stable at high speed, the brakes proved their worth, bringing the car down from 110mph on the fastest part of the track without fuss, ready for the tight second gear left-hander that followed.

Driving verdict

Not as raw as a Civic Type R, or as hard as a Leon Cupra R, the Megane offers high-performance driving with few of the compromises, and feels that bit more grown up. While rapid, it never feels intimidating and should have broader appeal.