Launch expected during the festive season.
In an attempt to decrease dependency on discounts and to keep prices real, Skoda takes the brave step.
Expected to be shown at the Paris Motor Show in September, the car is likely to be bigger in size than the Fabia.
The car will share a few design cues with the Vision D concept shown last year at Geneva.
The price hike will come into effect from early August 2012.
It took 11 years for the company to cross the 500,000 units production milestone.