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I'd put a Fiat Twinair in it and call it a day. With only 700kg to push it would be a riot and the low loads would make it very economical, at least at lower speeds. 3l/100km shouldn't be hard.
The R4 is manual I presume? Adding hybrid is tricky because you have to work out how to actually control it during gearshifts. If you just do something like an E boost button that might be easy but you'll loose some of the benefits.
It would probably be best to just go to full EV, as even small motors will probably provide more power than you have now.
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