Skoda say the new Fabia is also one of the most practical and spacious vehicles in its class.
It offers more rear knee and headroom, thanks to an increase in size over its predecessor. The new Fabia is 22mm longer and 47mm taller than the model it replaces.
A total of seven engines will be available in the new Fabia - four petrol and three diesel.
In keeping with the new Fabia's looks customers will be offered a wide range of bodywork colours coupled with quality materials in the interior.
Not only have the looks been updated, but the Fabia is now also safer than before. In addition to the dual front airbags, passengers will also be protected by front side airbags.
The Fabia has been a huge success since the launch of the first generation model in 2000. More than 1.5 million have been built in that time with over 112,000 finding homes with buyers here in the UK.
The world premiere of the new Skoda Fabia will take place at the Geneva Motor Show in March 2007. This will be followed by its UK launch in early May.