Czech car maker, Skoda, has added a new entry-level model to its Octavia range as well as previewing some value added features for its upcoming 2011 cars. It also announced an automatic option for the Octavia Scout SUV crossover.

A 1.4-litre engine in a mid-sized sedan might sound challenging but the new Octavia 90TSI is powered by the 1.4-litre turbocharged petrol engine that so impressed us when it arrived here last year in Volkswagen Golf 6. It generates 90 kW of power from 5000 rpm and 200 Nm of torque between 1500 and 4000 revs.

Despite the Skoda’s extra 120 kg in kerb weight, and a pair of XXL motoring journalists, the engine was spritely enough during our road test around the northern suburbs of Sydney that included a number of steep, hilly sections. It’s also smooth, responsive and impressively quiet.

The added benefit of the small engine is fuel economy and consumption is rated at 6.7 litres per 100 kilometres according to the Australian test standards.

Transmission options are six-speed manual and seven-speed DSG.

The other big news is that, thanks largely to the ailing Euro, the Octavia 90TSI becomes the first Skoda model to sell for under $25,000 (before on-road costs), thus making it more competitive than ever against its Japanese and Korean rivals.

For that price you get plenty of equipment including six airbags, ESP with ABS brakes, electronic brakeforce distribution and traction control, semi-automatic air conditioning, leather-wrapped steering wheel with audio controls, MP3-compatible CD player, cruise control and 15-inch alloy wheels.

Skoda Australia used the 90TSI to preview a number of changes to come with the MY2011 Octavia, due here in early 2011. Common rail diesels will replace the current Pumpa Duese units in the 77TDI and 103TDI models, bringing both increased refinement and fuel consumption/CO2 emissions reductions.

The 118TSI and 103TDI models will get Skoda’s new ‘Columbus’ satellite navigation with a 30Gb hard drive, previously a $2590 option.

Much to the frustration of Skoda Australia, sales to date of the Octavia Scout 4x4 wagon have been restricted because it was only available with a manual gearbox. This will change with the arrival of the 2011 model which will come with the option of DSG transmission as well as the new common-rail diesel engine.

The complete Skoda Octavia range, with prices (excluding government and dealer charges) is:
Octavia 90TSI 1.4-litre turbo-petrol five-door hatch: $24,990 (manual), $27,290 (DSG)
Octavia 90TSI 1.4-litre turbo-petrol five-door wagon: $26,990 (manual), $29,290 (DSG)
Octavia 77TDI 1.9-litre turbo-diesel five-door hatch: $27,490 (manual), $29,790 (DSG)
Octavia 77TDI 1.9-litre turbo-diesel five-door wagon: $29,490 (manual), $31,790 (DSG)
Octavia 118TSI 1.8-litre turbo-petrol five-door hatch: $30,990 (manual), $33,290 (DSG)
Octavia 118TSI 1.8-litre turbo-petrol five-door hatch: $32,990 (manual), $35,290 (DSG)
Octavia 103TDI 1.9-litre turbo-diesel five-door hatch: $33,490 (manual), $35,790 (DSG)
Octavia 77TDI 1.9-litre turbo-diesel five-door wagon: $35,490 (manual), $37,790 (DSG)