Skoda Australia has announced that the Octavia mid-size sedan and wagon, as well as the Kodiaq large SUV, will be available with a new mild-hybrid drivetrain in early 2026. The new drivetrain combines a turbocharged 1.5-litre petrol engine with a 48-volt mild-hybrid system, which aims to reduce fuel consumption while maintaining performance. The system allows the engine to coast when braking and switch off earlier when coming to a stop, but it cannot provide propulsion on its own.
The Octavia sedan and wagon will see significant improvements in fuel efficiency, with combined fuel consumption dropping to 5.1L/100km and 5.2L/100km respectively. The urban cycle consumption will also decrease by 1.8L/100km to 6.3L/100km. The Kodiaq SUV will also benefit from the new drivetrain, with combined fuel consumption dropping by 3.0L/100km to 6.0L/100km, and urban consumption decreasing from 12.1L/100km to 7.0L/100km.
The new drivetrain will replace the existing 1.4-litre turbo-petrol engine in the Octavia range, and will be mated to a seven-speed dual-clutch transmission. The Kodiaq will also see the introduction of a front-wheel drive variant, which will replace the all-wheel drive Select 140TSI model. The Kodiaq Sportline will continue to offer the 140TSI drivetrain and seven seats as standard.
In addition to the new drivetrain, the Octavia Select will also receive some updates, including smart keyless entry, an electric tailgate, and 17-inch wheels for improved ride comfort. The mid-spec Octavia Sportline has been discontinued and replaced with a new Select Signature Package, which adds features such as leather trim, electric front seats, and Matrix LED headlights.
The Kodiaq Select 110TSI mHEV will also be available with a new Signature Package, which adds features such as leather interior, automatic parking, and a Canton sound system. Skoda will announce local pricing and specifications for the mild-hybrid Kodiaq and Octavia models when they are released in early 2026. Overall, the introduction of the mild-hybrid drivetrain is expected to provide significant improvements in fuel efficiency and performance for both the Octavia and Kodiaq models.