Red Bull motorsport consultant Helmut Marko expects Renault's power unit to be on a level with Ferrari come the European rounds this season and reckons the team will be "well positioned" to take on Mercedes.
The French manufacturer, which supplies its own team as well as Red Bull and sister team Toro Rosso, is planning a major overhaul of its power unit following the scrapping of the token system, but doesn't expect its true potential to be clear until later in the season.
Marko, though, is expecting big things and says the initial data suggests Renault has made gains and will continue to progress when the first major update is introduced for May's Spanish Grand Prix.
"The signs are encouraging, the deficit has been successively reduced," Marko told Motorsport-Magazin.
"We should be well positioned by Europe," he added. "We should be on a level with Ferrari from the performance aspect, unless they make a big leap again, but we are not quite at the Mercedes level."
Marko commented that an increase in power will enable Red Bull to take a more aggressive approach with regards to setup.
"You can then go and run the same wings as Mercedes and not always be three or four steps below them, just to avoid losing too much on the straights," he commented.
When asked if Renault were likely to introduce a 'qualifying mode' – which it's believed Mercedes has, allowing the team to turn its engine up in the final stages of qualifying on Saturday – he added: "Whether there is a qualifying mode, is not yet clear, but I do not believe it will be as pronounced as with Mercedes."
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