THE latest Skoda Octavia range is set to expand with the addition of a new, highly efficient 1.0 e-TEC engine.

The new unit, which is equipped with a seven speed DSG automatic gearbox as standard is the brand's first mHEV, or mild hybrid powertrain, and is available in two trim variants, costing from £23,005.

At the heart of the e-TEC powertrain is a powerful 48-volt Li-ion battery and a combined belt-driven starter-alternator.

The 48-volt system means that the new Octavia can coast with the engine switched off for extended periods, with the electric motor maintaining power to essential systems like the car's power steering.

The mild hybrid system can also recover energy during braking and store it in the battery and support the combustion engine by providing it with an electric boost. The e-TEC's hybrid technology further enhances the efficiency of the Octavia's 1.0 litre, 110 horsepower petrol engine.

With a CO2 output of 115 g/km, the newcomer attracts a BiK rating of 26 per cent, making it an attractive proposition for company car drivers.

Buyers can specify the new 1.0 TSI e-TEC engine on two trim levels: SE First Edition and the fleet-focussed SE Technology. Available in both hatch and estate forms, prices range from £23,005 for the First Edition Hatch up to £24,235 OTR for the SE Technology Estate variant.

This new e-TEC model will be joined at a later date by an iV plug-in hybrid (PHEV) variant, which will also be available in sporty vRS iV form.