Upgrade adds appeal

The Czech carmaker has actually been around for more than 50 years, and had its last big sale surge Down Under in the early 1950s, but is battling to find its followers in 2009.

Which explains a total rethink on its hero car - the family-focused Octavia - and a new price point for the new year.

A $3000 price cut and a stronger emphasis on quality are the driving forces for the updated Škoda Octavia.

Škoda has also changed the engine direction on its starter car, trading a turbo-diesel for a hi-tech petrol-powered Octavia as it cuts the entry level from $29,990 to $26,990. But it is only a 1.6-litre four.

The new price leader still comes extremely well-equipped, with everything from airconditioning and alloys to power steering and CD sound, but it's a value push which must also run up against some heavy hitters including the Toyota Corolla and the Ford Focus, as well as the Mitsubishi Magna.

There is a new hero car, too, at least until the Octavia RS gets a similar makeover to the shopping cars in the second half of the year.

It is a 1.8-litre TSI with turbocharging and direct fuel injection. It is also available with a seven-speed DSG manu-matic gearbox, with a price from $31,490. The flagship still has a 2-litre turbo-diesel engine, with pricing from $33,990.

As usual, the Octavia comes as a liftback and wagon, and the body changes for the new model are modest. Lamps and a little more, but nothing like a full model change.

"The focus is on refinement. The old car wasn't that bad. No. It was good, but this is better," the head of Škoda in Australia, Matthew Wiesner, says.

"It's in line with how we're evolving. We're premium, with value. And this lifts us to the next level."

Škoda is actually running against the sales trend after two months of 2009, improving its year-over-year results by about 7.5 per cent when the overall market is down by 15 points. The Octavia is making the running, although the funky Roomster is also in the mix and there are evolving plans for the luxury Superb and the compact Fabia further into the future.

ON THE ROAD

A blindfolded test drive in the latest Octavia would peg it as a Volkswagen. Or maybe an Audi.

So its a good car and the new price makes it a good deal.

The cabin quality is first-class and a match for Japanese cars at a similar price, the chassis is solid and stable, and the mechanical packages work well.

Even the $26,990 car comes with six airbags, ESP stability control and a newstyle sound system that morphs into a satnav display in the higher models.

Škoda claims the car is a half-size above the $20,000 compacts, but it is really a Golf with a bit more boot space.

The DSG gearbox is also a bit jerky, as I have found in the latest Volkswagen Golf, particularly when parking or trying to ease away on a slight uphill grade.

And the 2-litre diesel gets along well with heaps of torque, but is well behind the class leaders on refinement. In short, it rattles.

The performance of the 1.6 is nothing special but the 1.8 petrol motor goes well and is well matched to a car with a lot of cornering grip for a family hauler, the seats have good support, and there is a lot of standard equipment.

In reality, the updated Škoda workhorse - both sedan and roomy wagon - is a reworked Volkswagen that happens to be built in the Czech Republic. It's a good car that should do better in Australia, and will do better once people are prepared to take a (slight) risk on the brand and badge.

PRICE: from $26,990 to $38,290
BODY: five-door liftback, five-door station wagon
ENGINE: 1.6-litre four cylinder petrol; 1.8-litre four-cylinder petrol; 2-litre turbo-diesel
POWER: 75kW; 118kW; 103kW
TORQUE: 148Nm; 250Nm; 320Nm.
TRANSMISSION: 6-speed manual, 7-speed DSG
ECONOMY: 7.8L/100km (1.6); 6.7L/100km (1.8); 5.7L/100km (2.0)