Skoda Australia has announced that the Octavia mid-size sedan and wagon and Kodiaq large SUV will be offered with a new mild-hybrid drivetrain in early 2026.

Introduced to lessen fuel consumption in both models, the drivetrain uses a turbocharged 1.5-litre petrol engine mated to a 48-volt mild-hybrid system to aid both performance and fuel economy. As a result, the Kodiaq now uses up to 5.1L/100km less fuel on the urban driving cycle.

Making the same 110kW of power and 250Nm of torque as the 1.4-litre turbo-petrol engine currently available in the Octavia range, the new 1.5-litre ‘mHEV’ drivetrain is mated to a seven-speed dual-clutch transmission – the eight-speed automatic standard with the 1.4T has been shelved. Unlike a Toyota-style hybrid, a mild-hybrid cannot provide propulsion but instead will allow the engine to coast when braking and switch off earlier when coming to a stop.

Skoda claims combined fuel consumption of just 5.1L/100km for the Octavia mHEV sedan (5.2L/100km for the wagon), which is an improvement of 1.0L/100km, while its urban cycle consumption drops by 1.8L/100km to 6.3L/100km.

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The Kodiaq SUV also receives the new drivetrain, but its efficiency gains are larger as it replaces a larger 140kW/320Nm 2.0-litre turbo-petrol engine that’s paired with an all-wheel drive system. Like the incoming Kodiaq plug-in hybrid, the mild-hybrid is front-wheel drive and replaces the all-wheel drive Select 140TSI. Like the front-drive drivetrain, it’s the first time that the Kodiaq is available with five seats in Australia. The Kodiaq Sportline continues with the 140TSI drivetrain and seven seats as standard.

Compared with the heavier and more powerful Kodiaq Select 140TSI, the Select 110TSI mHEV’s combined fuel consumption drops by 3.0L/100km to 6.0L/100km, while its urban consumption drops from 12.1L/100km to 7.0L/100km. CO2 emissions are yet to be announced.

In tandem with the new drivetrain, the Octavia Select is now equipped with smart keyless entry and an electric tailgate as standard, while its 18-inch wheels have been swapped for 17s for “greater ride comfort”.

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The mid-spec Octavia Sportline has been discontinued and replaced with a new Select Signature Package, which adds black or tan leather trim, electric front seats with heating/ventilation/massaging, head-up display, Matrix LED headlights, tinted windows and larger 18-inch wheels.

Meanwhile, the Kodiaq Select 110TSI mHEV – which is likely to be priced lower than the 140TSI – swaps leather trim for cloth, and now features redesigned 19-inch alloy wheels. It too is available with a new Signature Package, which adds leather interior in black or tan, automatic parking, 360-degree camera, power adjustable front seats (driver power adjust already standard) with memory and massage functionality, kick-to-open functionality for the electric tailgate and a Canton sound system.

Skoda will announce local pricing and specifications for the mild-hybrid Kodiaq and Octavia models when they’re released in early 2026.