Renault has launched a cut price Megane ‘Generation’ starting at £10,995.

The new five-door hatch replaces the Extreme trim level, in either 1.6 100 petrol or 1.5 dCi 90 FAP diesel guise.

Both models drive through five-speed gearboxes.

The Megane's introduction is part of Renault's ‘Vive Le Summer’ promotion, which has just started.

The new entry-level Generation 1.6 100 will be available for a limited time to retail cash buyers at £10,995 on-the-road - £3,000 less than the recommended retail price.

Outside of the offer, at £13,995 and £15,755 respectively, both models are still £860 cheaper than their predecessors.

Specification includes 4x15W radio CD with fingertip remote controls and aux input, air conditioning, cruise control, electric door mirrors and front windows, ESC, hands free keycard and speed limiter.