The petrol engines range from 1.4-litres to 2.0-litres. The 1.4 petrol can just about cope, but the 1.6 and 2.0-litre are better, though all petrol engines lack refinement. The diesel range is comprehensive and for 2006 the two 1.5-litre versions get slight power increases to 85 and 105bhp. The 1.9 dCi also gets a power boost to 130bhp. A new 2.0-litre diesel offers 150bhp with improved performance and better economy than the 1.9 engine.

The lower spec models are equipped with five-speed gearboxes, while the 2.0-litre petrol and diesel engines, plus the 1.9 diesel have six gears. A four-speed automatic transmission is available on the 1.6 and 2.0-litre petrol engine and on the 1.9 diesel only.

The soft ride is typical of French cars and the Megane copes well with UK roads and their potholes, although body control could be better. Roadholding is good, while changes made in 2006 brought a slight improvement to the steering which had previously been too light at speed.