RENAULT will launch a Euro IV diesel version of the Megane 1.9 dCi on June 1, using a 90bhp version of the common rail diesel engine.

The car will cost £400 more than 100bhp versions of the 1.5 dCi, but drivers of the new 90bhp 1.9 dCi will not face the 3% diesel supplement on company car tax. It means company car drivers in the 90bhp car will pay lower BIK bills than those in the 100bhp 1.5 dCi.

The new variant will come in Expression and Dynamique versions of the five-door Megane hatchback, Sport Saloon and Sport Tourer, and Dynamique variants of the three-door hatchback. Prices start at £13,890 on-the-road.