Volkswagen's Czech unit Skoda Auto has plans for a new model, its union's weekly newsletter reported, although details of its pricing and production schedule are still not certain.
Skoda union chief Jaroslav Povsik was cited as saying a mock-up of the new car, with a working name of A Entry, has been presented. He said the new model will be aimed at a lower price range.
Daily Mlada Fronta Dnes reported the model could be priced around 260,000 crowns ($13,650), putting it somewhere between its smaller Fabia make and family sedan model Octavia.
The newspaper said the car would be aimed at lower-income customers looking for a larger family car.
The production launch of the new model was not reported. A Skoda spokesman declined to comment.
Skoda sold a record 684,226 cars last year, helped by car scrapping subsidies in western markets like Germany and expansion in China.
The carmaker exports around 90 percent of its production and is a bellwether for the Czech economy, which is expected to post a modest expansion this year after contracting more than 4 percent last year.
Skoda has cut production of its smaller makes, like Fabia, to start this year, with the end of scrapping schemes hitting demand.
