Pricing for the Renault Mégane E-Tech has been cut across the whole line-up and the electric car now starts from £34,495.

That is £2500 less than the previous entry point of £36,995, but discounts on the higher trim levels are even greater.

The middle-rung Techno+ trim is now priced from £36,495 (£3000 cheaper) and the range-topping Iconic model is £38,495 (£3500 less).

The changes mean the Mégane now undercuts key mid-sized rivals, including the Kia Niro EV (£37,295) and Volkswagen ID 3 (£37,225).

However, the value-champion MG 4 remains significantly less costly, starting at £26,995.

The adjustments are have been made in order to free up room in the French brand’s pricing strategy for the incoming Renault Scenic E-Tech.

The new family SUV is expected to arrive in the UK early next year at a price of around £40,000. The exact figure will be confirmed in the coming weeks.

The Mégane price cuts are also a response to a ramp-up of right-hand-drive Mégane production, following its UK launch in 2022.

Renault has sold more than 5000 examples of the electric hatch since then, a spokesperson told Autocar.