LIKE any new brand trying to gain a foothold in one of the toughest car markets in the world, Skoda is taking time to show its potential in Australia.

The signs are all positive with sales up 50 per cent for the year, albeit from a low base, following its launch two years ago.

    IN A WORD
  • Make: Skoda
  • Model: Octavia RS
  • Price: $37,990 (auto $40,290)
  • Road test: JOHN PARRY

But if Skoda's performance in central Europe and its prospects in China and India are any indication, this Czech brand is destined for greater things here.

Its mainstream model, the Octavia, is similar in size and shares a lot of components with the previous VW Jetta and Golf, not surprising since VW has owned Skoda since 1991.

So far this year, Octavia sales have easily outpaced other European brands such as Alfa Romeo, Peugeot, Saab and Volvo.

Value for money, performance and quality are its strengths.

Model choice is extensive from frugal but flighty diesels to the high riding all-wheel drive Scout and high performance RS.

You'll be hard pressed to find a car under $40,000 that offers the equipment and performance of the Octavia RS.

The recently updated six-speed manual hatch is $37,990 and the six-speed direct shift automatic (DSG) is $40,290. Add $2000 for wagon versions.

Equipment includes six airbags, stability control, dual zone climate control, six-disc audio with MP3, daytime running lights, trip computer, heated front seats and door mirrors, auto wipers and headlights, cooled glove box, 60-40 split rear seats, anti-whiplash headrests, rear parking sensors, fog lights, remote locking, 18-inch alloy wheels (steel spare) and sports seats.

With a similar drive-train to the Golf GTi, the RS sprints to 100km/h in 7.3 seconds, just 0.4 seconds behind the 100kg lighter GTi.

The 2.0-litre turbocharged engine produces 147kW and 280Nm of torque from 1800rpm, the same torque but 8kW less than a GTi.

Press down the throttle and it's off, delivering strong and willing punch over a wide rev range and in the DSC version, rapid and decisive gear shifts.

On test, the DSG's slight hesitation on take-off required discipline on the throttle to launch quickly without chirping the front tyres.

And a word of caution for drivers who left-foot brake. Any overlap between the brake and throttle can trick the transmission into selecting neutral just when you least need it.

On the move, the RS feels taut and purposeful and there is plenty of feedback to keep the driver entertained.

The chassis is well balanced with accurate and predictable handling and a firm compliant ride. The steering is sharp and well weighted and the brakes strong and confident.

Styling is attractive and practical although relatively conservative exterior, which makes the RS something of a wolf in sheep's clothing.

Apart from the modest boot spoiler, red brake calipers and RS (rally-sport) badges there are few tell-tale signs.

Inside, the sporty touches included RS embossed sports seats, alloy pedals and scuff plates and a flat-bottomed sports steering wheel with paddle shifts on the DSG version. The interior is well laid out with clear controls and plenty of storage space.