Skoda has begun output of the new Rapid compact sedan at its plant in Pune India.
The Rapid will also go on sale in Europe in early 2013 and will likely be renamed for the European market, a Skoda spokeswoman told Automotive News Europe.
The sedan is based on the MissionL concept which Skoda showed at the Frankfurt auto show.
The Rapid has been designed primarily for the Indian market and deliveries will begin there at the end of this year, before the car is rolled out to other markets including China and Russia.
The Rapid represents the sixth model for the automaker in its global lineup and is viewed by the brand as being important to helping it achieve its goal of increasing global sales to at least 1.5 million by 2018.
Skoda is hoping that the car will help it open up the growing segment of compact sedans for the brand, particularly in emerging markets.
"We want to step on the pedal all over the world in the coming years. In order to do so, we will clearly increase our activities outside of Europe," Winfried Vahland, Skoda CEO, said in a statement.
He added: "In this context, the Indian market plays a central role, because, besides China and Russia, it is among the markets with the greatest potential. The new Rapid is the right car at the right time for these growth markets."
With a length of 4390mm (173 inches) and a width of 1700mm (67 inches), Skoda is positioning the sedan above the current Fabia subcompact and below the Octavia compact.
Marketed as a family car, the vehicle offers 500 liters of luggage space and ample space for five people to enjoy a ''relaxed traveling experience,'' Skoda said in a statement.
The Rapid is available with either a gasoline or turbo diesel engine, both with a displacement of 1.6 liters.
Volkswagen AG's Pune plant, where the Rapid is built, was commissioned in 2009. Following the Fabia, the Rapid is the second Skoda vehicle to be built at the facility.
The automaker also produces the Superb, Octavia and Yeti models at its plant in Aurangabad in the region of Maharashtra, India.
On Thursday, Skoda reported strong September sales, particularly in emerging markets including India, where deliveries grew 37.5 percent to 2,200 units last month.
In China, the carmaker achieved a new sales record with a rise of 9.8 percent to 21,100 vehicles. In Russia sales rose by 63.1 percent last month to 6,500 units.