Skoda Octavia Mild-Hybrid Update: Simplified Range for 2026

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Skoda Australia is streamlining its Octavia lineup for 2026, phasing out the base petrol model in favor of a more fuel-efficient mild-hybrid (mHEV) option. The new Octavia mHEV Select will become the entry point for buyers of the popular sedan and wagon, while also replacing the sportier Octavia 110TSI Sportline variant.

Key Changes to the Octavia Range

The shift to mild-hybrid power means Skoda will consolidate the Octavia range down to two main trims: the mHEV Select and the high-performance RS model. This simplification is driven by fuel efficiency standards and market demand for electrified vehicles. The mHEV Select will feature a 1.5-liter turbocharged engine paired with a mild-hybrid system, delivering 110kW of power and 250Nm of torque – the same figures as the outgoing 1.4-liter petrol engine, but with improved fuel consumption.

Improved Standard Features

The base mHEV Select trim gains standard features previously reserved for higher-spec models, including a power tailgate and keyless entry. To improve ride comfort, Skoda has downsized the standard alloy wheels from 18 to 17 inches. The cabin remains well-equipped, with a 10.25-inch digital instrument display, a 13.0-inch touchscreen infotainment system, wireless Apple CarPlay and Android Auto, and dual-zone climate control.

Optional Signature Package: Premium Comfort

Buyers seeking additional luxury can opt for the new Signature Package. This upgrade adds leather upholstery, power-adjustable, heated, and ventilated front seats with memory and massage functions, a head-up display, matrix LED headlights, tinted windows, and larger 18-inch alloy wheels. However, some features previously available on the Sportline (like 19-inch wheels and sports seats) will no longer be offered.

Fuel Efficiency Gains

The mHEV Select improves fuel economy to 5.1L/100km for the sedan and 5.2L/100km for the wagon, down from the 6.1L/100km and 6.2L/100km figures of the older petrol models. This makes the Octavia more competitive in a market increasingly focused on lower running costs.

Pricing and Availability

Pricing for the new Octavia mHEV is unconfirmed but expected to be announced in early 2026, alongside the launch of the mild-hybrid Kodiaq mHEV Select SUV. Given the Octavia’s fleet-friendly positioning, the mHEV Select could potentially be priced slightly lower than the outgoing petrol model, which currently starts at $41,490 drive-away. A small price cut of around $1000 for the mHEV Select with the Signature Package is a reasonable expectation.

The changes signal Skoda’s commitment to electrification and streamlining its model range for greater efficiency and market appeal.

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