RENAULT will become the first French manufacturer to launch a direct injection diesel engine when it unveils a 1.9 100bhp power unit which will feature in both the Megane and Laguna ranges. The new engine, which offers 5bhp more than Renault's existing indirect diesel engine but is claimed to be 17% more economic, will debut at next month's London Motor Show.

The move further signals the intensive battle for diesel business set to take-off and for Renault the new engine will fill the void until, like other manufacturers, it launches common rail diesel technology in about two years.