THE Skoda Octavia mild hybrid sedan has been especially optimised as a fleet focused model for the 2026 model year according to Australian executives for the brand.
Released earlier this month, the 48-volt mild-hybrid version of Skoda’s mid-size sedan and wagon is powered by a turbocharged 1.5-litre four-cylinder petrol engine, paired with an electric motor, producing 110kW and 250Nm.
The mild-hybrid Octavia replaces the turbocharged 1.4-litre four-cylinder petrol 110TSI Select and Sportline variants.
Instead, the Select mild hybrid now opens the Octavia range at $41,990 before on-road costs for the sedan and $43,490 + ORCs for the wagon.
The Signature Pack – available as a $6500 option for the Select model – has effectively replaced the Sportline variant.
Meanwhile, the petrol-only RS variant still sits atop the Octavia sedan and wagon range.
The mild-hybrid model improves fuel economy over the non-hybrid Octavia by one litre per 100km, with a claimed fuel economy of 5.1L/100km in the sedan and 5.2L/100km in the wagon.
“We wanted to make (the Octavia) a more fleet focused car, so we actually went to some of our fleet clients and asked what do you want in a car like this?” said Skoda Australia product manager Glen Reid.
According to Skoda’s Australian Brand Director Lucie Kuhn, the environmental friendliness of the mild hybrid Octavia – as well as the recently introduced plug-in hybrid and incoming mild hybrid versions of the Kodiaq – is an appealing proposition for fleet buyers.
“Octavia is our number one fleet car. And we can see that it very positively resonates within this segment, and especially with the mild hybrid,” Ms Kuhn told GoAuto.
“It’s also the kind of hybrid, where the company starts thinking about the environment and some CO2 policies within their fleets.
“So here is a space where actually our Octavia or potentially also Kodiaq can fit into these two areas either with the mild hybrids or even with the PHEVs.”
Several changes were made to the Octavia’s list of standard equipment for 2026, prompted by fleet buyer’s interactions with Skoda’s dealer network according to the brand’s Australian Head of Marketing & Product Kieran Merrigan.
“The feedback comes through our dealer network, essentially, they’re the ones most of the time speaking to the end users so the changes we’ve made for model year ’26 was we put a smaller alloy on the car, so we went from 18 (inch wheels) down to 17 as the standard,” he said.
“We added in the auto tailgate. They said some of the fleets in terms of lifting and pulling down a boot from an OH&S perspective was super important. And the third thing was the keyless entry.”
“It’s always (a case of) trying to find a balance of what equipment is required and at what costs. Where’s the right price point?
“But in terms of having those conversations with our dealers who are more engaged with the fleet customers, they felt that price point and that equipment was the sweet spot for the majority of fleet customers.”
While moves have been made to optimise the Octavia for fleet buyers, alongside its Superb stablemate, it also appeals to retail buyers looking to buck the SUV trend with a sedan or wagon purchase.
“The segment overall (for) sedan and wagons (is) shrinking. So the market goes year on year more into SUVs,” added Mr Kuhn.
“(But you) can observe still a relatively high share of sedan or wagon owners. This we feel is an opportunity in the retail space to address these customers and offer them these two products of the two segments, speaking about Octavia and the Superb.”
As of the end of February, 97 Skoda Octavia examples have been sold in Australia during 2026, down from 130 sold by the same time last year.
Last year, Skoda sold 731 Octavias in Australia, compared to 846 in 2024, marking a sales decrease of 13.6 per cent.