evelopment of the X65 commenced in 1991, a year after the May 1990 launch of the Clio. In 1992, Pierre Beuzit became project manager of the X65 programme. In December 1993, a final design developed under Patrick Le Quément was approved, with development for production commencing, so in 1994 Renault rented a 129,600-square-foot building in Saint-Quentin-en-Yvelines, west of Paris. More than 600 people from Renault and its suppliers went to work there. The X65 project team became a laboratory for Renault's Guyancourt technical center. Forty teams were created, each responsible for a section of the car. In February 1997, management moved market launch by nearly a month from 15 March 1998 to 11 April 1998. Development ended in 1997, as pre-production units began to be constructed at Flins.[21][22][23]

The second generation of the Clio was launched on 9 March 1998 and sold for less than €8,000, with considerably more rounded and bulbous styling than its predecessor. Part of the radical concept of the new Clio were many components made of unusual materials to save in weight and repair costs.[citation needed] For instance, the front wings were made of plastic (following criticisms of corrosion in this part of the previous model and based on technology developed for the Renault Espace) and the material of the bonnet was aluminium in some versions. Originally the engine lineup was similar to before, with 1.2 L, 1.4 L and 1.6 L petrol engines and a 1.9 L diesel. The project manager from 1992 to 1998 for the Clio II was Pierre Beuzit.

In early 2000, a sportive 16V version equipped with a new 1.6 L 16-valve engine was introduced, and eventually, all the older petrol engines were upgraded to more powerful and more economical 16-valve versions.[24]

In 1998, Renault launched the 172 hp (127 kW) Clio Renault Sport (also known as Clio R.S. for short), with a 2.0 L 16-valve engine and a top speed of 220 km/h (137 mph). This was named the Clio Renault Sport 172 in the UK – 172 coming from the DIN method metric horsepower measurement. The standard Clio RTE powered with by the 1.2 54 hp (40 kW) engine could reach 160 km/h.[citation needed] The top-of-the-range Clio, however, was the 2001 mid-engined, rear-wheel drive Clio V6 Renault Sport, originally engineered by Tom Walkinshaw Racing for a one-make racing series, which placed a 230 hp (169 kW) 3.0 L V6 engine, sourced from the Renault Laguna, behind the front seats, with a top speed of 235 km/h (146 mph).[citation needed] Production was at the TWR factory in Sweden. Clio V6 production over three years was approximately 1513 vehicles with 256 sold in the UK.

In 2000, a few minor changes were made to the Clio range, which included revised specification levels, a new instrument cluster, and a passenger airbag fitted as standard for all models. The Clio achieved a four-star Euro NCAP rating in 2000,[25] which was class-leading at the time.[26]

In Japan, Renault was formerly licensed by Yanase Co., Ltd., but in 1999, Renault purchased a stake in Japanese automaker Nissan after Nissan had faced financial troubles following the collapse of the Japanese asset price bubble in 1991 and subsequent Lost Decade. As a result of Renault's purchase of interest, Yanase canceled its licensing contract with Renault in the spring of 2000, and Nissan took over as the sole licensee, hence sales of the Lutecia II in Japan were transferred from Yanase Store locations to Nissan Red Stage Store locations.

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