Skoda Australia Targets Next-Gen Toyota RAV4 Challenger

Skoda’s Push for a New Generation of the Karoq SUV

Skoda is showing strong interest in developing a second generation of its popular Karoq SUV, which has long been positioned as a key competitor to the top-selling Toyota RAV4 in the Australian market. While some had speculated that the Karoq nameplate might be retired with the launch of the electric Elroq, uncertainty around emissions regulations could lead to a new combustion-powered version of the Karoq.

The potential for a new Karoq has generated significant enthusiasm from Skoda Australia and other global markets. Despite being an older model, the Karoq continues to achieve annual sales of over 100,000 units worldwide.

Lucie Kuhn, director at Skoda Australia, shared her thoughts on the matter, stating:

“Not only Australia, many markets globally are interested in having another generation of Karoq. Head office picked up this feedback thoughtfully and are currently analysing and working on that opportunity, to see if it would work globally. We expressed interest, we joined another group of markets, because the segment is pretty relevant and massive here in Australia.”

While plans for a second-generation Karoq are gaining momentum, they remain dependent on whether Europe proceeds with its plan to loosen the ban on new petrol, diesel, and hybrid cars by 2035. This legislation is still under consideration by the European Parliament.

Martin Jahn, Skoda’s head of sales and marketing, has indicated that the brand will wait “as long as possible” before making a decision on the new Karoq. This approach leaves room for another facelift of the current model.

This strategy is not new for the Volkswagen Group. Other brands within the group have also opted for facelifts rather than retiring older models. For example, Seat has updated its Arona and Ibiza models, which were previously rumored to be discontinued. Similarly, Volkswagen will give its Polo model a fresh look.

The Karoq was first introduced in 2017 and received its last update in 2021, featuring revised exterior styling and a modern digital instrument display. A new Karoq is expected to continue using the Volkswagen Group’s MQB platform, likely the latest version. As a result, Australian buyers can expect a range of petrol and hybrid powertrains, with the latter potentially sourced from the upcoming Volkswagen T-Roc.

MORE: Explore the Skoda Karoq showroom