It's not easy launching a `new' car brand on the Australian market. In the past 15 months Skoda – a member of the Volkswagen Group along with Audi – has sold just 1200 cars. That's about as many Skoda Octavia's that were sold when Octavia was first released here in 1959, the year that General Motors was pumping out about 90,000 FC Holdens.
 The first Octavia fell victim, ironically, to Volkswagen's ubiquitous Beetle whose popularity in Australia was only surpassed by those other Beatles a few years later. Skoda then disappeared from our market after giving us just a fleeting glance of the Eastern European car maker.
Fifty years on from the first Octavia, Skoda has re-launched the second generation Octavia with a significant facelift. When Octavia hit our shores in late 2007 it was already well entrenched in Europe as a four year old model. So the facelift is a welcome upgrade to half the Skoda range, the other half being the Roomster.
The changes not only include a sharper, leaner looking car, but an infusion of Volkswagen technology under the skin. Skoda have dumped the 1.9 litre TDI diesel in favour of a 1.6 litre TSI petrol and slashed the entry level car by $3000 to $26,990. The 1.6 petrol engine is sourced from the outgoing Volkswagen Golf.
They hope the price, along with the car's size and standard kit, will attract some buyers currently looking at the premium end of the small car segment. But the real action is now with a 1.8 litre TSI and 2.0 litre TDI liftback and wagon. The sporty TSI petrol has a six speed manual transmission as standard and an optional 7 speed DSG transmission straight from Volkswagen's box of clever tricks.
 The 7 speed DSG has a torque rating up to 250Nm while the six speed DSG found in the 2.0 litre TDI diesel is rated to 350 Nm. We drove the 1.8 litre TSI wagon with the DSG transmission and the 2.0 litre TDI mated to a six speed manual.
Both cars impressed with road holding, low NVH and fit and finish. You would think a wagon might not have the same dynamics as a sedan, but the difference between the two is insignificant.
Octavia's interior is obviously a take on the VW sedans, and there's nothing wrong with that. The layout is practical and functional and the use of quality plastics adds to a feel of being in a premium-end car. That in itself creates some problems for Skoda as in Europe it's seen as the budget end of the VW Group.
Here, buyers have chosen to buy larger numbers of the top-end RS variants, raising the possibility of Skoda competing against VW. Head of Skoda Australia , Matthew Wiesner admits Skoda in Australia is developing differently here, than in Europe. Hence the re-structure of the Australian line-up, including a cheaper entry level car and two fuel efficient top end variants.
The 1.8 TSI has a combined fuel efficiency of 6.7 litres/100 kms while the 2.0 litre diesel returns a miserly 5.7 litres/100 kms. In times of uncertain fuel prices these engines make good sense, although we have reservations because the 1.8 litre petrol uses 98Ron fuel, which costs significantly more than 91Ron unleaded.
There's no compromise with acceptable performance. The 1.8 litre petrol boasts 118kW of power and 250Nm of torque, available through 1500 rpm to 4200 rpm.
VW's DSG transmissions, that features dual clutch technology, offers savings in fuel efficiency and emissions in both petrol and diesel variants. The diesel returns 103 kW or power but has truckloads of torque with 320 Nm on tap between a low 1750 rpm and 2500 rpm.
Neither engine is found wanting. Unfortunately, we did not get to steer the 1.6 litre petrol during our road test.
Major exterior changes give the Octavia a more aggressive, cleaner appearance, particularly at the pointy end. There's new headlamps, front fog lamps, bumper, a new radiator grille frame, larger side mirrors and the side mouldings are now painted the same colour as the sheetmetal.
It's a slicker, sharper looking vehicle.
Down the rear end there's a new bumper, tail light covers and `Octavia' lettering. Inside, it's more of the same: fine tuning of the basics. The most apparent is a new four spoke multi-function steering wheel, similar to Volkswagen product and the instrument panel now has easy to read white illumination. In the rear pew there's now a compartment in the centre folding armrest.
The 1.6 variant has an AM/FM diversity tuner with a single CD with MP3 and eight speakers and steering wheel mounted controls. A step up to the 1.8 TSI and 2.0 TDI gives buyers a 6-CD integrated changer, CD-MP3 and CD-WMA player with eight speakers and a 6.5 inch colour touch display showing climate air conditioning information as well as parking sensors, time and outdoor temperature.
The 1.6 gets air conditioning while the other two variants come with climate control. As standard fare the 1.6 comes with a host of goodies including six airbags, ESP (Electronic Stability Program) including ABS, EBD and ASR, central locking and remote control, power windows, 15 inch alloys, cruise control, trip computer, height adjustable front seats and lumbar support and an armrest with cooled storage space.
The 1.6 litre engine puts out 75 kW of power and 148Nm of torque at 3800 rpm and returns 7.8 litres/100 kms. But it does use the cheaper 91Ron. It will not be the fastest car on the track.
The 1.8 TSI and 2.0 TDI get 16 inch alloys, light assistant with coming and leaving home function, fog lamps and rain sensing windscreen wipers. Octavia comes with a long list of options, which if included take the marque into the `premium' end of town.
Skoda launched in Australia with Octavia and Roomster and will add the Superb sedan to the line up this year.
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