Skoda Australia is lobbying for a second generation of the Karoq SUV, its direct competitor to the top-selling Toyota RAV4, even as the automotive industry pivots toward electric vehicles. The future of the combustion engine-powered Karoq was uncertain with the arrival of the electric Elroq, but shifting emissions regulations in Europe may keep it alive.
Global Demand Drives Revival
Despite the EV trend, the current Karoq remains popular, with global sales exceeding 100,000 units annually. Skoda Australia director Lucie Kuhn confirmed strong interest from multiple markets in a new generation:
“Not only Australia, many markets globally are interested in having another generation of Karoq.”
Skoda’s head office is evaluating the feasibility of a global launch, responding to this widespread demand. The segment remains significant, particularly in Australia, where SUV sales dominate.
European Legislation as Key Factor
The decision hinges on whether the European Union will relax its planned ban on new gasoline, diesel, and hybrid car sales after 2035. According to Skoda’s head of sales and marketing, Martin Jahn, the company will delay any final decision “as long as possible” to assess the legislative landscape. This could mean further facelifts of the current model instead of a full redesign.
VW Group Strategy: Extending Combustion Lifecycles
Skoda is not alone in prolonging the life of combustion vehicles. Other Volkswagen Group brands, like Seat, have refreshed aging models (Arona and Ibiza) instead of phasing them out entirely. Volkswagen itself plans a similar approach with the Polo.
Current Karoq and Future Prospects
Launched in 2017 and updated in 2021, the current Karoq runs on Volkswagen Group’s MQB platform. A new generation would likely continue using this platform, offering both gasoline and hybrid powertrains, potentially sharing technology with the upcoming Volkswagen T-Roc.
The revival of the Karoq underscores the continued demand for traditional SUVs, even as the industry transitions toward electrification. The final decision rests on European policy, but Skoda is clearly responding to a substantial market opportunity.
