In September 1996 the manufacture of the Octavia liftback, a completely new middle range vehicle, was launched in the new assembly shed (the Estate wagon version had it world premiere in 1998).

The successor of the Felicia was introduced in 1999 , this was the compact Škoda Fabia model. At first the Fabia was fitted with 1.4 MPI/50 kW, 1.4 16V/74 kW and 1.9 SDI/47 kW engines, today the range of motors is incomparably greater.

More than 4000 Felicia Fun vehicles, vehicles for leisure time based on the pick-up model, were manufactured during 1997 - 2000.