The Škoda dragon stirs

As any first-year marketing student will tell you, a new product must have a USP if it's going to succeed. Frustratingly for some brands it can take time for its Unique Selling Points to be truly appreciated.

Škoda is a good case in point. The Czech brand's key selling points are solid engineering, borrowing heavily on its VW links, quality and delivering big on value for money.

Škoda is a big seller in Europe, but here it remains a little-known niche player. But the marque has ample firepower to impress.

Its RS - the sports version of its volume-seller Octavia - has the merit to be a hit, but it remains a sleeper, accounting for less than 20 per cent of Octavia's modest volume.

Škoda's battle to build excitement in its model mix took a giant step last week with the launch of the face-lifted RS. The dragon has woken and it is breathing fire.

The RS range has been diversified, offering a wider choice of petrol or diesel engines and manual or manumatic DSG transmissions.

The latest RS neatly ticks two of the important marketing boxes: it packs performance without sacrificing fuel efficiency, and it comes with a list of standard equipment at a price which doesn't break the bank.

Škoda Australia boss Matthew Wiesner says he finally has a range of RS models to win sales.

"We were handicapped by the previous RS in that we could only offer a manual petrol version. Now we have petrol and diesel, manual and the DSG and in liftback or wagon"

"It will probably still only account for 20 per cent of Octavia sales, but that model is showing healthy growth, so it's all incremental."

The new RS's styling belies its potency. Here's a versatile liftback or wagon which successfully does double duty as a performance car and family bus.

A wolf in sheep's clothing? Not quite, because the clothing gives a hint there's something here with more than average driveability.

The RS comes with lowered and stiffer suspension, new front and rear lamps - including for the first time, day-time LED running lights - 18-inch alloys, sports seats, alloy pedals, obligatory rear wing, chromed twin exhaust pipes and red-painted brake callipers. They all lift the otherwise homely appearance of the Octavia.

But if you are looking for the petrol or diesel badges to tell the RS twins apart, you won't find them.

Škoda has delivered two models which, between them, have an impressive set of numbers - starting with the price from $37,990, up just $300 on the previous version.

That gets you into a Euro import with plenty of solid German engineering, and better than expected Czech build quality. There's a generous level of standard bling for the money, including dual zone air-conditioning with air quality sensing, remote central locking, six-stack MP3 audio system, heated front seats, rain-sensing wipers, rear park sensors and multifunction trip computer.

On the safety list you can tick the boxes for six airbags, advanced antilock brake system, traction and stability control and on-board tyre pressure monitoring. Luggage space in both the liftback at 560 litres and wagon 580 litres with rear seats up.

The hardest choice is picking the petrol or diesel. There's a balancing act here: the gap between slower but more frugal diesels and quicker but thirsty petrols has narrowed.

Škoda says the turbo-packing direct injection petrol version (featuring the same acclaimed engine as VW's Golf GTI) can hit 100km/h in 7.3 seconds, which is 1.1 seconds quicker than the diesel. But the oiler's sprint time is no embarrassment for a vehicle which tips the scale just under 1.5 tonnes, 35kg heavier than the petrol version.

The petrol car delivers peak power of 147kW over a 900rpm band, with maximum torque of 280Nm available from 1800 to 5000 revs. That's a hugely broad band, giving the RS strong and long legs.

It shows few vices. It feels well balanced with a degree of expected understeer. Only the brakes could benefit from more stopping power.

The diesel has a different driving dynamic, but it's probably the better car to live with if you do a lot of country running thanks to its massive low to mid-range torque and fuel economy.

It sips a claimed 5.91/100km for a mix of city and highway running, compared to the petrol's 7.71/100km. The common rail turbo diesel delivers 125kW, but its secret is the fat 350Nm on tap from 1750 to 2500rpm. There's some turbo lag, but for a diesel the engine is remarkably quiet.

The diesel is impressive, but my choice is the petrol wagon. It offers the best of both worlds - a family-sized and versatile load carrier with potent performance. Hard to ignore.

Also on show was a world coup that Škoda Australia engineers pulled off in only five days.

The RS-P (P for project) had its first on-track outing at Camden airport, with engineers evaluating its ride and handling. The RS was given massive brakes, a 14-way adjustable suspension, a larger exhaust system and substantial bracing.

Journalists were given track rides and the verdict from the passenger seat: there's still some understeer issues but the car's handling and braking is awesome.