Euro hatch for the chop? Struggling Hyundai i30, Mazda3 and Toyota Corolla rival “under investigation” for continued presence in Australia

While the Toyota Corolla has sailed over 13,000 year-to-date sales (end-August) and its nearest small car rivals, the Hyundai i30 and Mazda3 both sit above the 7000 unit mark, the Skoda Scala is yet to hit triple figures and the Czech brand’s local boss has confirmed it is “under investigation” in terms of a continued presence in the Australian market.

Only 97 examples of the wagon-style hatchback have found homes here so far this year, which is down 63 per cent on the same period in 2024.

And when asked if the model was under review Skoda Australia Director Lucie Kuhn recently told CarsGuide, “We are right now analysing the product.

“It’s actually a very good product. I would say it’s a nice car, very practical for daily usage but the car has limited sales. 

“It is very interesting, I would say, for rental car companies, but for private users they go in the direction of Kamiq when they make a choice.

“So, it’s currently under investigation what we will do with the product. But for now it’s still with us,“ she said.

The Scala review comes at a pivotal time for Skoda in Australia, with YTD sales just over 22 per cent down compared to the same period in 2024, which was itself 29 per cent behind 2023 numbers.

But Ms Kuhn points to an inflow of new product which she believes will right the ship and have sales increasing strongly within the next 12 months.

“In the last two years the product portfolio was coming to the end of its life. And at the beginning of this year we started the change of the portfolio and selling out the older cars. 

“(We are) now in the middle of our work where we finally manage to sell out the old-generation cars and we are on-boarding the new ones that are currently available.

“We have everything new, all new, plus electric which is a completely new area where we haven’t been so active before,” she said. 

As well as a relatively low profile, comparative pricing may be playing a part in the Skoda Scala’s sales performance. Starting at $33,990 drive-away for the 1.0-litre Select, rising to $45,990 D/A for the 1.5L Monte Carlo, pricing is some way ahead of the dominant segment players.

The Hyundai i30 and Toyota Corolla ranges include sub-$30K base models (before on-road costs), but when asked if Skoda might execute a smaller volume, higher profit margin strategy in similar fashion to Honda and Mazda, Kuhn is emphatic.

“We started eight months ago where we actually wanted to make our portfolio more affordable to more customers. 

“So, rather than more top versions like RS, we extended the range. That’s why we have the Select range. We also have the packages which are between Sportline and Select.

“The portfolio is more affordable for the customers than it used to be in the past,” she said.