Renault 5 electric hatch an unlikely eventual replacement for Clio

Renault Australia has confirmed it will not bring the latest Renault Clio to market due to dwindling local demand for traditional small cars, but the French brand’s smallest model could eventually be replaced here by the all-new retro-styled Renault 4 electric hatch.

The fifth-generation Renault Clio was launched in Europe back in 2019 and confirmed for Australia later that year, but then kyboshed in mid-2020 when the previous Mk4 Clio was discontinued Down Under.

A heavily facelifted version of the Mk5 Clio is slated for global reveal in the coming weeks, promising a bold new front-end design and electrified drivetrains, but the general manager of Renault’s new Australian importer has ruled out the latest Clio making an appearance in Australia.

“That segment is just tiny now, it has just disappeared,” said Glenn Sealey.

The Renault Clio is one of many light-cars to disappear from Aussie showrooms in recent years; others include the Kia Rio, Ford Fiesta, Suzuki Baleno, Mitsubishi Mirage, Hyundai Accent, Holden Barina and Honda Jazz and City.

Meantime the remaining Toyota Yaris, Skoda Fabia, Volkswagen Polo, Hyundai i20, Fiat 500, Mazda2 and Suzuki Swift have pushed upmarket and are all now priced from above $20,000.

However, Sealey says Renault Australia isn’t walking away from the small passenger car space entirely, although it will focus on SUVs in the short-term.

“Captur will continue in Australia as our [smallest model]… we will continue in that regard and we will offer three SUVs – Captur, Arkana and Koleos – plus the introduction of the Megane E-Tech [mid-size electric SUV, plus commercial models including the forthcoming Kangoo].”

Renault Australia is also closely watching the development of the all-electric Renault 4 small SUV and Renault 5 small hatch – in particular the latter, which looms as a retro rival to the MINI Electric and Honda e.

“The Renault 5 has spearheaded the ‘Renaulution’ program, and it’s a terrific take on a retro vehicle. It could work really well for us,” Sealey said.

“The whole issue is that it has to work for the Australian consumer, for the manufacturer and for our Australian network. If you tick those three boxes then you’re away.

“If it happens, it would be by 2025. If they make it in right-hand drive, we’ve got our hand up. It’s whether they’ll make the additional investment to satisfy our ADRs.”

Speaking of EVs, Sealey has also confirmed Australian interest in the new Renault Espace, which is set to shift from people-mover origins to a distinctly SUV execution in its next generation, as well as electrification.

Sealey believes the Espace is a sound candidate for Australia, but also says it could co-exist with the next generation of Koleos, whose long-term future beyond 2024 remains under a cloud.

“I think Espace could work well, but it’s important under the current market conditions that we do balance and have internal combustion engines – for affordability and mobility,” Sealey said.

“There’s no getting around the fact that electric cars are more expensive than EVs, and there is still a need for both.”

Renault enjoyed a 25 per cent spike in annual sales volumes in Australia in 2022, and Sealey is determined to sustain a strong presence locally.

“Volume is not our ultimate ambition. Part of the success of Renault today is the philosophy of value over volume,” Sealey said.

“While our sales are up, that is not our ambition. Our ambition is a quality business.”

Sealey said a potential distinguishing feature for the French brand promises to be its ongoing combustion-powered model range – despite the banning of petrol and diesel cars in Europe from 2035 – through the continued development of conventional engines.

“If you look at what Renault has done, they’ve separated the company into a number of pillars,” he said.

“The fact that Renault is still investing in internal combustion engines shows they have an international focus beyond Europe, which is important because there are many parts of the world that does not have a grid to support full electrification.”

For everything you auto know about EVs, listen to carsales' Watts Under the Bonnet: the electric car podcast

Join the conversation at 

our Facebook page

Or email us at 

editor@carsales.com.au