Skoda will launch a new budget saloon in 2012, designed to take on Renault’s Dacia brand.
Budget brand Dacia has seen strong sales growth in the past few months under pan-European scrappage schemes, and Volkswagen Group is keen to cover the gap between Skoda and Dacia as part of its ‘alignment’ strategy.
The new car will directly replace the original Octavia which is still sold in some emerging markets. It will be a similar size to that car, making it smaller than the current Octavia.
Speaking to Autocar, Skoda’s CEO Reinhard Jung said the model would be sold in Western Europe in order to bridge the gap between the current Fabia and Octavia, which he described as “too big.”
No decision has been taken on whether the model will be sold in the UK, but it is unlikely to have mass appeal here.