Skoda updates the Superb lineup.

The new 103 kW version of the Supurb will be more affordable for under $40,000.

The move recognizes Skoda as a vital cog in the 10-brand VW machine and now gives it carte blanche to target the family market while the Volkswagen brand takes a seat under Audi.

Despite the fact that Seat - the Spanish division of Volkswagen - remains afloat as a manufacturer of a certain segment, all this is good news for the Czech Skoda. The expansion includes the release of the Fabia and Yeti later this year, the new Octavia by 2013 and other versions of the big Superb car.

The Superb is getting another engine option, this time a 103kW version of the existing - and ongoing - 125kW 2-litre unit. A powerful finish is enough to cut costs as well. Skoda Australia boss Matthew Wiesner says its front-wheel-drive format will bring the price down to $30,000.

“For large car buyers who want a diesel in a sedan or station wagon, this is a great opportunity,” he says. “Superb is in the big car segment, which saw a 20 percent drop in sales, but I think it has more to do with the decline in popularity of local big cars than anything else. I'm happy with how Superb is developing."

Wiesner says diesel is hard to come by. “We don't have enough diesels,” he says. “Superb is 35 percent of our total volume. The model range includes 65% of railcars and 80% of diesel railcars.”

The introduction of a diesel engine of lower power is aimed at reducing the price. On the datasheet, the difference in power and torque between 125kW and 103kW is small. 

“We know that 103kW will make the model more affordable – it will cost less than $40,000 – so it will appeal to a wider audience,” he says. “We now have a 125kW TDI engine that is in high demand outside of the fleet.

“Having said that, we see the benefits of being in a fleet because it exposes the car directly to potential buyers – that’s the “loafer in the seat” mentality. For this reason, we have loaned almost 300 vehicles to Europcar and we have had some success with this, leading to Superb and Octavia sales.”

The 103 kW diesel will be available as a front-wheel drive version from August, and then in the new year as an all-wheel drive sedan and wagon version. Wiesner says he sees similarities with Subaru in Skoda's marketing.

“Subaru has Liberty and Outback and we have Superb 2WD and 4WD. Similarly, the Octavia 4WD station wagon will be equated with the Impreza, and the Octavia Scout with the Forester.”