The first generation Octavia was released in November 1996 and was built at the modernised Škoda factory in Mladá Boleslav, Czech Republic. This generation was made available in hatchback or estate styles only.
In the United Kingdom, sales began in 1998 and the mid-size car was an instant success with buyers who appreciated its solidity, refinement and value for money, though it could not quite match the success of established large family car favourites such as the Ford Mondeo and Vauxhall Vectra.
The car was widely used in the United Kingdom taxi trade, owing to the large number of private hire drivers who used the vehicle, due to its low price [and advantageous leasing agreements directed at the self-employed taxi driver], space and reliability.
The first generation Octavia had an facelift in 2000, and was still manufactured and marketed in some markets, even after the second generation was introduced in 2004. In Germany, and other parts of West Europe, as well as Asia, the first generation model was marketed as the Octavia Tour, while the newer model is marketed as the Octavia. In some markets, the first generation Octavia was still known as Octavia, and the newer model was referred to as the new Octavia, Octavia5 (Greece) or Laura (India).
The major improvements of the facelifted model are the independent rear suspension and improved interior, in terms of space, design and quality of materials.
The facelifted Octavia featured a 4x4 wheel drive version both for the estate and more popular hatchback models, and used the Haldex Traction clutch, like other Volkswagen Group A platform based cars (Golf IV, Audi A3 and Seat Leon Cupra R4). It had higher ground clearance and a bigger fuel tank carrying 63-litre (17 US gal; 14 imp gal) compared to the 55-litre (15 US gal; 12 imp gal) standard front wheel drive versions.
The 4x4 option was only available with the 1.8 T 150 bhp (112 kW; 152 PS) petrol engine, the 1.9 TDI 90 bhp (67 kW; 91 PS) diesel engine, or the 2.0 L petrol engine, all coupled with a 5-speed manual gearbox, and with the 1.9 TDI-PD (Pumpe-Düse) 100 bhp (75 kW; 101 PS) diesel engine which came with a 6-speed manual gearbox.
The other 6-speed manual model was the 1.9 TDI-PD 131 bhp (98 kW; 133 PS), only available with front-wheel-drive.
The vRS was the top-level and quickest specification and used a 1.8-litre straight-4 turbocharged engine which produced 180 bhp (134 kW; 182 PS). Škoda made a limited number of 100 WRC Replica Cars worldwide in 2002. These differ from normal vRS Octavias, as they are produced in white, have rally decals and have additional accessories as standard (such as ESP, xenon lights, heated front seats).
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