Škoda has strengthened its value-focused line-up in Australia, confirming that Škoda Kodiaq Select and Škoda Octavia Select variants will transition to a new 1.5-litre turbocharged mild-hybrid (mHEV) powertrain.
For fleet and novated-lease buyers, the update is squarely aimed at improving efficiency and whole-of-life costs, while maintaining performance and equipment levels that have made both models popular in salary-packaged and business use.
Kodiaq Select: lower fuel use, clearer choice for fleets
The new Kodiaq mHEV Select replaces the outgoing all-wheel-drive 2.0-litre 140TSI Select with a front-wheel-drive mild-hybrid setup, delivering 110kW and 250Nm. While peak outputs are lower than the previous AWD variant, fuel consumption drops significantly.
Combined cycle fuel use falls to 6.0L/100km, an improvement of 3.0L/100km, while urban consumption improves by up to 5.1L/100km compared with the outgoing model. For fleets operating predominantly in metro environments, this represents a meaningful reduction in fuel spend and CO₂ output.
The Kodiaq mHEV Select is available in five-seat and seven-seat configurations, aligning with the existing Kodiaq PHEV Select and providing flexibility for passenger-carrying roles. Standard specification includes new 19-inch alloy wheels, with cloth trim replacing leather as part of the value-driven repositioning.
For organisations seeking a higher-grade cabin without stepping into Sportline or RS territory, a new Signature Packageis available. This adds leather upholstery, advanced parking assistance, surround-view camera, powered front seats with memory and massage, a hands-free tailgate function and a premium CANTON audio system.
Octavia Select: efficiency gains without sacrificing output
The Octavia Select also adopts the same 1.5-litre mHEV powertrain, matching the outgoing petrol model’s 110kW and 250Nm, while delivering measurable fuel savings.
Urban fuel consumption improves by 1.8L/100km, dropping to 6.3L/100km, while combined cycle figures improve by up to 1.0L/100km, now rated at 5.1–5.2L/100km depending on sedan or wagon body style.
Škoda has also used the update to sharpen the Octavia’s fleet proposition, making keyless entry and a power tailgate standard on Select for the first time. Wheel size drops from 18-inch to 17-inch alloys, a move that prioritises ride comfort and replacement tyre costs—an important consideration for high-kilometre users.
A new Signature Package effectively replaces the outgoing Sportline 110TSI, bringing leather trim, heated and ventilated front seats with massage, head-up display, matrix LED headlights and tinted windows, while returning to 18-inch wheels.
Pricing and fleet relevance
Škoda has confirmed that pricing will be announced in early 2026, closer to the models going on sale. Both vehicles continue to be backed by Škoda’s seven-year unlimited-kilometre warranty and access to the Guaranteed Future Value (GFV) program through Škoda Choice—features that remain attractive for novated leasing and longer replacement cycles.
From a fleet perspective, the move to mild-hybrid technology in high-volume Select grades provides a pragmatic step toward lower emissions and running costs, without the charging considerations associated with full battery-electric vehicles. For many fleets reviewing utilisation and right-sizing vehicles, the updated Kodiaq and Octavia present a clearer, more efficient business case.
