Priced from £23,005 and available from 22 September on both SE First Edition and fleet-focused SE Technology trims, the electrified three-cylinder powerplant produces 108bhp, making it slightly less powerful than the entry-level MHEV versions of its Seat Leon and Volkswagen Golf siblings.
The system uses a belt-integrated starter generator (BISG) to recover energy during braking and top up a 48V lithium ion battery, which can then take over from the engine to power systems like the power steering, allowing for extended engine-off coasting.
The e-Tec comes exclusively with a seven-speed automatic gearbox.
Performance figures have yet to be officially confirmed, but Skoda promises enhanced efficiency over the existing 1.0-litre turbo petrol option, which can crack a WLTP-certified 54.7mpg and emits 117g/km of CO2.
Skoda lists a number of efficiency-boosting features already fitted to the engine, including an aluminium crankcase, a variable-vane turbocharger and optimally balanced connecting rods, which means the engine has no need for a balancing shaft.
The engine operates on the Miller injection cycle, which is said to offer maximum torque 35% earlier than on a conventional engine.
The Octavia will also soon be available to order with a new plug-in hybrid powertrain, which will produce up to 242bhp in top-rung vRS guise.