In 1996, with the arrival of the Phase 3 facelifted Clio, the 1.2 L Energy engine was replaced by the 1,149 cc D7F MPi (Multi Point Injection) DiET engine, first used in the Renault Twingo; for some time also, versions were available with the older 1239 cc "Clιon" unit from the original Twingo. The cylinder head design on the 1.4 L E-Type was also slightly altered for the Phase 3 models in a bid for better fuel economy.
The Phase 3 Clios had a slightly more noticeable update than the Phase 2's. The Phase 3 has different, more rounded headlights, incorporating the turn signal in the unit with the headlight. The bonnet curved more around the edges of the lights. The tailgate incorporated a third brake light and a new script "Clio" name badge, following the same typeface as contemporary Renaults. Some mechanical improvements were also made.
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