Renault is in the midst of a significant transformation as it strives to position itself as a premium brand with an electrified lineup. The first step on this journey was taken with the Megane E-Tech, which perfectly fulfilled its purpose. Now, the Austral is set to replace the Kadjar as Renault's core SUV, pitting itself against formidable competitors like the Nissan Qashqai and Kia Sportage.

Unlike the Megane, the Austral, as indicated by its AUSTRAL E badge, does not enter the battle with a fully electric powertrain. Instead, it introduces a new hybrid system.

This decision was wise on Renault's part, as the existing hybrid engine found in models like the Clio, Captur, and Arkana would not have given the Austral a fighting chance against its rivals. The new hybrid system combines a 1.2-liter turbocharged petrol engine, two electric motors, and a small 2kWh battery. With 200PS of power on tap, the Austral offers impressive efficiency, boasting official figures of 60mpg and CO2 emissions of 105g/km, significantly lower than its competitors. 

Renault has carried over the complex clutchless gearbox from its other hybrid models, albeit with updates. The gearbox manages the power output from the engine and motors through 15 possible combinations. The Austral starts silently on electric power and can remain in EV mode for up to 80% of city driving with a gentle right foot. However, the battery's capacity is limited, and the petrol engine quickly activates to recharge it. At lower speeds and light loads, the motor powers the front wheels, while the petrol engine collaborates with the motor for increased acceleration. During high-speed cruising, only the engine propels the Austral forward.

Operating the Austral's powertrain is straightforward for the driver. Simply engage Drive and go. The system performs best when the electric motor does the work, but the power delivery becomes slightly disjointed once the petrol engine kicks in. While cruising, everything feels fine, but demanding sudden bursts of power may result in a hesitation as the gearbox determines the optimal delivery.

In terms of refinement, the Austral represents a significant leap forward for Renault in this segment compared to the Kadjar. The powertrain operates quietly, wind noise is minimal, and the car feels more substantial and luxurious than its predecessor. Notably, the Austral features a four-wheel steering system, available on top-spec Iconic Esprit Alpine models. This system reduces the turning circle, enhances maneuverability, and improves handling.

Thanks to the Austral's agile nature and quick steering, it feels remarkably nimble, although this may be somewhat disconcerting for some drivers. Renault appears to have prioritized handling over comfort in the suspension setup, resulting in a firmer ride that can feel jarring over bumps. Lower-grade Austral models may offer a softer and less engaging experience in this regard.

The Austral boasts muscular yet understated exterior styling, lacking the boldness of the Megane and sharing similarities with the now discontinued Koleos.

Inside, the Austral shines, showcasing its best attributes. The wraparound dashboard integrates a 12-inch portrait touchscreen and a digital instrument cluster with excellent graphics, powered by Renault's Google-based OpenR operating system.

The center console features a prominent handle for sliding open the storage box lid, serving as a comfortable hand rest while driving. However, the gear selector's placement to the right of the steering wheel, above the wiper stalk, may lead to occasional confusion.

Our test car was equipped with a full-length glass sunroof and part-Alcantara upholstery, elevating the Austral's premium feel. Soft-touch materials, metal trim finishers, and supportive seats contribute to the overall quality. The Austral offers ample space for five adults, ensuring comfortable travel. The boot provides 555 liters of storage, slightly more than the Qashqai but slightly less than the Sportage.

All Australs come well-equipped, even the base Techno model, which features 19-inch alloys, LED headlights, keyless entry, parking sensors, and a reversing camera. Prices start at £34,695, around £5,000 higher than the most expensive Kadjar but on par with a Hyundai Tucson Hybrid. The Austral's lower emissions result in over £400 in annual savings on company tax bills compared to the Tucson.

Renault has certainly raised its game in the medium SUV segment with the new Austral. However, it hasn't exactly rewritten the rulebook. While it boasts a high-quality interior, impressive technology, and competitive running costs, some of Renault's efforts to achieve a more "premium" status have come at the expense of ride quality. Furthermore, the new hybrid powertrain may not be advanced enough to compete with rivals that offer plug-in technology. Considering Renault's evolution plans, one can't help but imagine that a fully electric Austral would truly be a game-changer in this segment.