Review of the new Renault Megane II 2.0 dCi 150

American motorists routinely say 'don't go there' to diesel and the average Japanese driver wouldn't touch it with a ten-foot chopstick but in Europe we can't get enough of the stuff. In 2006, over fifty in every hundred cars sold in Europe drank from the black pump. That's a lot of cars and a lot of money for the manufacturers who can best tap in to the burgeoning diesel demand. Renault hope that they'll secure a king size slice of the market with the advanced 2.0-litre dCi 150 engine that's available in their Megane.

There are various reasons why the Europeans go crazy for diesel cars while other major markets couldn't care less. For a start, the Americans don't need diesel. Their gasoline prices still run at roughly equivalent levels to those for bottled water, so the US motorist thinks nothing of running a mammoth V8 truck with a thirst to rival that of the England darts team. Prices are changing and the popularity of diesel is increasing but it still has a long way to go over there.

In addition, both America and Japan have tight vehicle emissions legislation which focuses on curbing the Nitrogen Oxide and particulate matter that diesel engines traditionally produce more of. In Europe, more emphasis is placed on reducing Co2 emissions from vehicles, an area where diesels out-perform petrol engines. Clean low-sulphur diesel fuels are also more widely available over here. This means that diesel vehicles attract a lower relative taxation burden in Europe and modern engines can meet emissions standards without expensive particulate filters which bump-up costs.

The growth of the European market has seen manufacturers invest billions in developing diesel engines as they race to cash in. As a result, the technology has progressed rapidly and engines like Renault's 2.0-litre dCi 150 are tangibly superior to equivalent units from as little as five years ago. The Renault unit uses the common-rail direct injection configuration and a variable geometry turbocharger to deliver the goods. Unlike less sophisticated powerplants, its piezo-electric injectors can make multiple high-pressure injections of fuel into the cylinder during each combustion cycle. This allows fuel to be burned more efficiently as the engine adapts to the demands being placed on it, maximising performance and minimising emissions.

"Some world markets just don't get diesel cars but driving the Megane dCi 150 really makes you wonder why"

The time when spiralling fuel costs and tighter limits on CO2 emissions could make the prospect of diesel engines a more attractive one for American buyers may not be far off but for the time being, we Europeans get models like Renault's Megane dCi 150 all to ourselves. The engine produces just 144g/km of Co2 and turns-in an outstanding average fuel economy of 54.3mpg. Compare that to Volkswagen's 140bhp Golf TDI (49mpg) or Ford's 135bhp 2.0 TDCI Focus (51mpg) and you'll appreciate the cleverness of Renault's engineering.

The Megane produces its peak 150bhp power output at 4,000rpm with a full 340Nm of torque available from 2,000rpm. It all makes for some truly urgent acceleration, especially when you're in the meat of the torque curve, but the overriding impression is one that you don't expect to take away after driving a diesel. The Megane majors on smoothness and refinement: you could almost be fooled into thinking you were driving a petrol car, were it not for the punchy mid-range. The power pours on gradually as you accelerate and engine noise in the cabin is well managed. If you really go for it, 62mph is just 8.7s away from standstill.

The Megane's driving experience also majors in comfort, with suspension that cossets you along, well-insulated from the road surface. The 'tube-in-tube' steering column also works to refine the experience at the wheel, cutting down on vibrations but maintaining the responsiveness and feel you need for an engaging drive. The Megane is by no means the sportiest of the family hatch contenders but its blend of impressive refinement and not uninvolving dynamics make a lot of sense in a car that must appeal to such a wide audience.

The Megane's interior doesn't really mirror the car's unorthodox exterior styling but it's a far from unpleasant place spend time and build quality is strong. The gently-curving centre console is neatly laid-out with the audio, heating and ventilation controls. The buttons may be a little small for some tastes but it's refreshingly simple to locate the function you want. The instrument binnacle features chrome-ringed dials with white background lighting while Dynamique and GT models carry this chromed theme on to the air-vents and door handles. The aircraft-style handbrake is an interesting touch that also works well enough and there are traditional Renault features such as the keyless entry, rain sensing wipers and automatic headlamps - depending on the model you choose. Rear parking sensors are an option that will appeal if you're wary of taking the sheen off your Megane's party-piece rear end in a car park shunt.

It seems to be almost a given these days that each new Renault model will receive five stars from the men in white coats at the Euro NCAP crash testing laboratory and the Megane didn't disappoint. The car is equipped with ESP stability control, CSV understeer control and ASR traction control. Then, should you somehow manage to confound that little lot and relinquish control of your Megane, Renault's Intelligent Protection System uses crumple zones and a plethora of airbags to keep the occupants safe. All five NCAP stars were predictably forthcoming.

Some world markets just don't get diesel cars but driving the Megane dCi 150 really makes you wonder why. The car offers brawny performance which would have graced a seriously hot hatchback just a few years ago with economy and emissions that you'd more readily equate with a citycar. It's a highly capable all-round engine in an accomplished car. The Yanks don't know what they're missing.