Large Skoda SUV confirmed for Oz in 2016

The day after Volkswagen showed off its new seven-seat SUV CrossBlue concept - ostensibly a preview of its upcoming Toyota Kluger rival - Czech sister brand Skoda has confirmed it also plans to offer a large SUV.

Speaking to motoring.com.au at the global launch of the new MkIII Skoda Octavia in Portugal, Skoda CEO Dr Winfried Vahland didn't bat an eyelid when asked if Skoda would build an SUV, specifically one that is larger than its Yeti compact SUV.

"I feel that a bigger SUV is important for Skoda," said Mr Vahland, who noted that while Europeans prefer smaller SUVs, markets such as China and Australia are prime targets for a larger 4WD vehicle.

Skoda's CEO talked excitedly about the prospect of a new family-sized SUV which is expected to be based on the same MQB platform that will underpin the Volkswagen CrossBlue SUV.

Mr Vahland confided he's already seen early designs of the new seven-seat Skoda.

"I already saw some sketches," he grinned.

The large Skoda SUV is still about three years away, and will be deployed after Euro 6 emissions regulations take effect in 2015.

"2015 would be the earliest [for the large SUV]. We have a lot of challenges until 2015 - we have Euro 6 to be fulfilled, so we have to change a lot of things to August 2015.

"After that I see a window of opportunity. But okay, let's speak about Australia - for sure that would mean 2016."

SUV sales are continuing to boom in the local market and the Skoda chief said Australia would be a good destination for its first full-sized SUV.

However, Mr Vahland made it clear that development of the high-riding Skoda would be driven by Chinese demand more than anything else, and would exploit compact fuel-efficient engines.

"I lived five years in China and I know a lot about opportunities in China. They like SUVs there, it's a trend, but they don't like the US-type of SUVs - too big engines. Because now we have to look at environmentally friendly engines so we do small engines but bigger SUV maybe with seven seats," he explained.

Like the turbo-diesel electric hybrid engine that powers the Volkswagen CrossBlue concept, Skoda will likely put its hand up for that engine technology, but it will most likely make its Skoda debut in a passenger car, before powering the new SUV.

"If we introduce it [hybrid], we will introduce it top down. So we will think about starting with Superb and maybe also a bigger SUV may need such a hybrid system."

Skoda’s as-yet-unnamed SUV will arrive at least two years before the end of its mid-term sales strategy, which calls for 1.5 million global sales by 2018. Skoda sold a record 939,200 cars in 2012.