Škoda pops head over fence

Launching a car in Australia that's already four years old in its home territory takes some guts. That's what Škoda did in 2008 when after some decades' absence it re-entered the Australian market with the Octavia.

It was an inoffensive looking sedan and wagon but the punters were not convinced and sales ventured along struggle street.

Škoda has now gone some way to rejuvenating its star attraction by launching a facelifted version of Octavia, including some of Volkswagen's latest engine and gearbox technology. In case you are unaware, Škoda, along with Audi, is part of the Volkswagen Group.

After spending a day in two new variants, Škoda might like to call the past 18 months a soft launch and as of now they are in the market place with a more competitive machine.

The Octavia's facelift is more than just a tart up to a dowdy front end, but includes significant new choices of engines and transmissions. Plus, Škoda has dumped the entry level 1.9L diesel in favour of a 1.6L TSI petrol, and cut the cost by $3000 with a $26,990 starter price.

The TSI 1.6 engine is sourced from the Volkswagen Golf and so has a proven track record even though the technology is a little dated. Škoda hopes this will bring in customers who might otherwise have looked at premium-end small cars.

But the real action is now with a 1.8L TSI and 2.0L TDI liftback and wagon. The sporty TSI petrol has six-speed manual as standard and an optional seven-speed DSG transmission straight from Volkswagen's box of tricks.

The seven-speed DSG has a torque rating up to 250Nm while the six-speed DSG found in the 2.0L TDI diesel is rated to 350Nm. We drove the 1.8L TSI wagon with the DSG transmission and the 2.0L TDI mated to a six-speed manual. Both cars impressed with their 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.

The 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 Škoda in Europe is 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 Škoda competing against Volkswagen.

Head of Škoda Australia, Matthew Wiesner admits the marque is developing differently here than it has 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 6.7L per 100km while the 2.0L diesel returns a miserly 5.7L/100 km.

In times of uncertain fuel prices these engines make good sense. The 1.8L petrol boasts 118kW of power and 250Nm of torque, available through 1500rpm to 4200rpm. Volkswagen's DSG transmissions feature dual clutch technology and offer savings in fuel efficiency and emissions in both petrol and diesel variants. The diesel returns 103kW or power but has truckloads of torque with 320Nm on tap between a low 1750rpm and 2500rpm.

Neither engine is found wanting. Unfortunately, we did not get to steer the 1.6L petrol.

Major exterior changes give the Octavia a more aggressive, cleaner appearance, particularly at the pointy end. Škoda launched in Australia with the Octavia and Roomster and will add the Superb sedan to the line up this year.