PARIS MOTOR SHOW: Top-down for Skoda Kodiaq

When Skoda's first seven-seat SUV, the Kodiaq, arrives in Australia in July or August next year, its market positioning will be at odds with budget-oriented Skoda models of the past.

That's because the Volkswagen-owned Czech brand will take a 'top-down' approach to the launch of its first seven-seat SUV, which made its global debut at the Paris motor show yesterday.

Revealing the first details of the all-new mid-size SUV's Australian model line-up, Skoda's local chief Michael Irmer said the Kodiaq will initially be offered only in 132TSI form, powered by a 132kW/320Nm 2.0-litre turbo-petrol four-cylinder engine.

A top-shelf 140TDI diesel version, fitted with a 140kW/400Nm 2.0-litre turbo-diesel, will follow about two months later, and all Australian Kodiaqs will be available exclusively with seven seats, all-wheel drive and a seven-speed dual-clutch automatic transmission.

So far, of the five engine variants to be produced, none of the lower-output petrol and diesel engines on offer in Europe – where there will be 110kW diesel and 92/110kW 1.4-litre petrol mills -- have been confirmed for Australia.

Nor has Skoda Australia ruled out the addition of front-wheel drive and even five-seat versions of the Kodiaq for local showrooms at a later date.

Irmer said it was too early to talk about launch pricing, but the premium powertrain strategy will most certainly make the Kodiaq more expensive than Volkswagen's new Tiguan, with which it shares its MQB platform and powertrains.

For reference, the second-generation Tiguan is itself priced higher than before from $31,990, for the entry-level 11TSI version fitted with a 110kW 1.4-litre turbo-petrol engine driving the front wheels through a six-speed manual gearbox.

The equivalent Tiguan 132TSI Comfortline 4MOTION DSG is priced at $41,490, so it seems unlikely the cheapest Kodiaq will undercut the $40,000 mark, although Volkswagen will launch an even more closely related Tiguan 'XL' model with seven seats in 2018.

Irmer said the premium approach to the Kodiaq range in Australia -- where it will be the brand's top-seller -- reflected the demands of local Skoda customers, a large proportion of which buy high-spec model variants including RS versions.

"We will focus on the top end with this model, as this is what we believe the customers want in Australia," Irmer said. "We followed a similar strategy with [the new] Superb, focussing on the top-end."

Irmer said the Kodiaq's top-down approach was justified by strong global demand for high-sped versions of the Superb and Octavia, 20 per cent of the sales of which were RS models.

"It's the right strategy to launch top-down. Our buyers aren't running on a budget -- they're smart buyers that are often highly educated and they choose Skoda. I don't want to say the word premium, but we are aspirational."

Irmer admitted the downside would be higher entry pricing, which will not match seven-seat mid-size SUVs such as the Nissan X-TRAIL and Mitsubishi Outlander, both of which start at under $35,000,  but should be competitive with $40K-plus large seven-seaters like the Toyota Kluger, Mazda CX-9, Nissan Pathfinder, Hyundai Santa Fe and Kia Sorento.

"The entry price point will obviously be a little bit higher as a result," he said. "But we have not ruled out other variants at a lower price point later on. We want to make sure we build the right image for that product."

Skoda's board member in charge of sales and marketing, Werner Eichhorn, said the Kodiaq's more premium positioning was in line with recent releases like Skoda's new-generation Superb flagship.

"It's a major step for us because we have the unique chance to have a top-of-the-range additional car in the fastest growth sector around the world," he said.

"We have some experience of course with the Yeti, but this car in the upper segment really gives us the opportunity to express Skoda in a different way.

"We are quite famous for functionality, roominess and value for money, and lately with models like Octavia we have started to focus on design and technology. Superb has played a major design role and now with Kodiaq we do it again.

"Top-down with the latest technology, but still Skoda – best-in-class roominess, functionality and, even if we never talked about cheap, value for money."

He denied there was pressure from Skoda's parent company Volkswagen Group not to encroach on its market territory.

"There are no discussions at all. Volkswagen is the premium mainstream brand. We are Skoda -- one million cars mainly in Europe and China -- and step by step we'd like to enrich our sales mix. Driven by design and technology we'd like to convince customers to join us from other brands."

Eichhorn said Australia would be a vital market for the Kodiaq.

"Australia gives the chance to be seen as an internationally successful brand, because we ourselves have to prove that outside we can be successful. It is absolutely key to prove that far away from the Czech Republic and Europe, we are also successful.

"The team [in Australia] has really managed to give us a clear position, with high volumes of [Octavia] RS, with [Fabia] Monte Carlo, Skoda really has a great position in the market.

"We'd like to sell in the upper range with nice design and more emotion but the same quality, functionality, safety and roominess."

When it arrives here in mid-2017, Skoda says the 4.7m-long Kodiaq will bring class-leading cargo capacity (up to 2061 litres), plus a 2500kg towing capacity and latest safety and infotainment tech.