Skoda announces eye-popping price for new Fabia

A European maker has been forced to defend the enormous price placed on its new vehicle that is due in showrooms next month.

Skoda has defended an enormous price increase for its Fabia small car, saying customers expect more from new cars and that the Czech manufacturer is no longer Volkswagen’s poor cousin.

The Skoda Fabia, a compact machine similar in size to the Mazda2 or Toyota Yaris, will start from $37,990 drive-away when it goes on sale next month.

The Skoda Fabia Monte Carlo comes at a premium price.

That represents a 52 per cent price increase over the 2021 Skoda Fabia, which sold for $24,990 drive-away in automatic trim.

Skoda director Michael Irmer said the Fabia’s upward trend mirrored that of the brand.

“Perhaps no new model better embodies Skoda’s journey in Australia than the new Fabia Monte Carlo,” he said.

“Far from being a budget sticker European as it was initially perceived, last year the average drive away price of a new Skoda was $52,000 … We have launched the new generation Fabia in its top line configuration because this is what our customers tell us they want from a Skoda.”

A hi-tech engine and transmission is part of the deal.

Powered by a turbocharged 1.5-litre engine with 110kW and 250Nm, the Fabia Monte Carlo is fitted as standard with a seven-speed dual-clutch automatic transmission driving the front wheels.

The Fabia is loaded with advanced driver aids including auto emergency braking, active cruise control, lane keeping assistance, blind spot monitoring and rear cross traffic alert.

Inside the 2022 Skoda Fabia Monte Carlo.

Based on the same underpinnings as the new VW Polo, it has a 10.25-inch digital dashboard, along with a 9.2-inch central touchscreen with wireless Apple CarPlay, Android Auto and smartphone charging.

There’s little missing from the equipment list – the only options are metallic paint ($500) and a self-parking system ($1000).

Which is just as well, because it costs about $5000 more than the latest Polo, which costs $28,250 plus on-roads in automatic form, or about $33,000 drive-away.

Blind spot monitoring is part of a long safety features list.

Skoda’s decision to publish drive-away pricing for the machine could make it harder for dealers to add significant on-road costs to the bill. Sister brand Volkswagen criticised enterprising sales staff who added profit margins to sought-after models, charging more than $90,000 on the road for machines like the latest VW Golf R.