RENAULT has a reputation for making hot hatches, with the exception of one recent example.

The Megane RS launched two years ago was plagued by torque steer, and we felt it was, on the whole, not Renault's best effort in this genre.

The engineers at the crack Renault Sport Technologies division in Dieppe obviously agreed. They have come up with an improved version: the F1 Team R26.

Bearing the same name as Renault's 2006 Formula One title-winning car, the R26 ought to be something special. And it is.

It displays none of the wayward handling of the standard RS. Unleash all its 228bhp at one go and you still won't experience the torque steer the RS had.

Grip in the corners is tremendous, with the R26's nose holding on valiantly even when the car is pushed hard.

The key to the improved handling lies in the tweaked suspension as well as the inclusion of an LSD (Limited Slip Differential).

The LSD helps put the power down cleanly and significantly improves traction - you can feel it working when the steering loads up under hard acceleration through a bend.

The R26 also gets more poke than the RS to match its better dynamics. The 2-litre turbo motor now makes 228bhp and 315Nm of torque.

There's a hint of turbo lag at low revs but performance is explosive once the turbo gains enough momentum and spools up.

Go past 3,000rpm and the R26 tears down the tarmac like a scalded cat. The 0-100kmh sprint is dispatched in a scant 6.5 seconds, placing the R26 firmly in hot hatch territory.

The car is equipped with a six-speed manual gearbox. Its shifts are precise and the throws short enough.

The three-door R26 gets further enhancements inside and out to differentiate it from the RS. The exterior gets chequered flag graphics on the roof and bumpers as well as 18-inch alloys among other things, while the interior gets an F1-style numbered plaque and a pair of brilliantly supportive Recaro buckets.

The R26 commands a significant price premium over the regular Megane RS and other hot hatch competitors like the Honda Civic Type R and the Volkswagen Golf GTI.

Now that the engineers have made the car desirable to drive, perhaps the accountants can help to make it more wallet-friendly.

Price: $142,000 with COE
Engine: 1,998cc 16-valve inline-4
Transmission: Six-speed manual
Power: 228bhp at 5,500rpm
Torque: 310Nm at 3,000rpm
0-100kmh: 6.5 seconds
Top speed: 237kmh
Fuel consumption: 8.5 litres/100km (city-highway)
Agent: Wearnes Automotive