Škoda steps up sales chase

ONLY two European brands are selling more cars in Australia than last year: Audi and Škoda. Both are members of the Volkswagen group and both are strategically vital to Volkswagen's goat of becoming the leading global carmaker.

While Audi sits above Volkswagen, Škoda protects its underbelly. Since it was acquired by the German maker in 1991, the Czech marque has been slowly building its export markets so that it now sells into 100 countries.

It has become the leading brand in central Europe and is steadily expanding across the globe, especially in the developing markets of China and India.

Škoda's regional sales chief Oliver Glaeser predicts China will overtake Germany to become the brand's single biggest market within a year, mirroring the situation at Volkswagen itself.

Škoda has also been "a big winner" from Europe's scrappage schemes, particularly in Germany where its small Fabia car not sold here yet has been a huge hit. This year's states forecast has just been increased to 680,000 cars, which would pip last year's record total of 675,000. "Even in these tough times we're doing fine," says Glaeser, who visited Australia this week for the launch of the upgraded Octavia RS.

Two years after Škoda's reintroduction, Australian sales are up 22 per cent and should reach 1500 cars this year. Glaeser believes the brand has great potential.

"Australia is a market that suits our product range. Obviously, building a brand takes time, but we've seen some big jumps in customer satisfaction and awareness. "Hopefully next year we'll get to 2500 or 3000 cars."

In New Zealand, where it launched five years ago, it has cornered 1 per cent of the passenger car market, and while it has been silent until now about its volume goals in Australia, Glaeser confirms it wants to repeat that growth curve here.

In Australia our plan is to reach 1 per cent market share as quickly as possible," he says. "You have to calculate about five years to reach that, so 2012 at the earliest."

Glaeser says double that volume is eventually needed to be feasible. Škoda's present Australian line-up headlined by the midsize Octavia and Superb large car means its appeal has been limited to older buyers, but local buyers will eventually get the full range, with the Fabia and Yeti compact SUV pitching for a younger audience.

The performance pinnacle of its Octavia bestseller, the RS, was relaunched this week after being introduced a year ago.

It feels familiar but smarter, with a conservative exterior and restrained cabin recognisably from the Volkswagen family. The materials are well-judged and seats very comfortable, with sections picked out in contrasting colours and fabrics. That's about the extent of the performance bling.

I'm already acquainted with both engines from other Volkswagen group cars and, while Škoda doesn't always get the latest technology, these units are well worth the price.

The diesel is neither too noisy nor too agricultural from behind the wheel and pulls with enthusiasm. The petrol is quicker and more fun, with the first-rate soundtrack Volkswagen always seems capable of extracting from its turbocharged fours.

Both have strong fuel efficiency credentials and neither loses much from getting the six-speed, rather than latest seven-speed, double-clutch transmission.

The brakes can be a bit snatchy until you're used to them and the steering isn't a highlight, but the ride-handling balance is pleasing, with nicely disciplined body movements that deliver great road composure along with an acceptable ride.

These Octavias can even be punted with enthusiasm around a track, in this case a likeness of the Top Gear Australia circuit at Camden airport, west of Sydney. While the diesel is noticeably heavier in the nose, thanks to the extra weight of the engine, both are surprisingly agile. Even the wagon.

Neither is something you expect from studying the car's conservative exterior. But the Octavia RS, like the company, wears its ability discreetly.

NEED TO KNOW

Škoda Octavia RS
Vehicle: Mid-size hatch or wagon
Engine: 2.0-litre turbocharged four-cylinder, petrol or diesel
Outputs: 147kW at 5100rpm and 280Nm at 1800rpm (petrol); 125kW at 4200rpm and 350Nm at 1750rpm (diesel)
Transmission: Six-speed manual or double-clutch automatic, front-wheel drive
Price: From $37,990 (hatchback manual) to $42,290 (wagon automatic) plus on roads
On sale: September