Skoda will launch its version of the VW Up city car in 2011 and a new small saloon in 2012

Skoda has confirmed it will launch its version of the Volkswagen Up city car later this year as part of the Czech firm’s bid to double its annual sales to 1.5 million units by 2018.

The ‘City Car’, as it is currently known, will be joined by Skoda’s range by a new small saloon that will sit in between the Fabia and Octavia and will be aimed at developing markets.

Confirming the new models at Skoda’s annual press conference, company chairman Winfried Krause said the City Car was to “answer to the increasingly strong demand for small cars with low fuel consumption and affordable running costs”.

“It offers a new sales potential in Europe for us,” he added.

Read more on Skoda's future plans

Both new models’ styling will be influenced by Skoda’s VisionD design concept revealed at the Geneva motor show earlier this month.

Skoda has also said both models will stick to its ‘simply clever’ mantra, offering “practical vehicles with an optimal offer of space and an outstanding price/value ratio”.

Last year’s total unit sales figure of 762,000 was Skoda’s best ever, and the firm’s sales are already 25 per cent up year-on-year in the first two months of 2011.

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