Budget brand Dacia has seen strong sales growth under European scrappage schemes and the Volkswagen Group is keen to cover the gap between Skoda and Dacia as part of its �alignment� strategy.
The new car will directly replace the original Octavia, which is still sold in some emerging markets including the UK � strictly as taxis. It will be similar in size to the original Octavia, making it smaller than the current Octavia.
Skoda�s CEO, Reinhard Jung said the model would be sold in parts of Western Europe in order to bridge the gap between the current Fabia and Octavia, which he described as �too big.�
No decision has been taken on whether the model will be sold in the UK.
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