The second-generation Octavia was introduced in March 2004, based on the Volkswagen Group A5 (PQ35) platform also used by other Volkswagen Group cars, such as the Audi A3 Mk2, Volkswagen Golf Mk5, Volkswagen Jetta Mk5, SEAT León Mk2, etc.
Responsible for the design were Thomas Ingenlath and Peter Wouda. Along with a new internal-combustion engine range, also shared with other models of the Volkswagen Group, body changes included more legroom for rear-seat passengers (a weak point in the original model) and increased ground clearance at front and rear to reduce the risk of grounding on steep ramps or facing kerbs.
In addition to the Czech factories in Mladá Boleslav and Vrchlabi, from 2008, the Octavia has also been produced at a factory in Bratislava, Slovakia, and in Shanghai, China, under the joint venture of Shanghai Volkswagen.
In Russia, the Octavia is assembled at the Volkswagen plant in Kaluga.
In India, the second-generation Octavia was marketed as the Laura to distinguish it from the first generation.
The car was marketed in a higher-income segment, and was sold alongside the previous-generation Octavia. However, the first generation ended production in India in 2010, and as of 2012, the Laura's price was reduced and was competing in its predecessor's segment.
Two four-wheel drive versions of the Octavia are made: the 4x4 and the Scout, both featuring a Haldex Traction four-wheel drive system, based on a computer-controlled clutch centre coupling. The two models both have higher ground clearance than the standard Octavia, increased by 24 mm (0.9 in) for the 4x4 and by 40 mm (1.6 in) for the Scout.
The Scout, announced in 2006, is only available with the estate body style, and has several crossover-style exterior modifications, such as larger bumpers.
In August 2011, a special Škoda Octavia vRS hit the world record on the American Bonneville Speedway and became the fastest car in the world with an up to two-litre engine, when it hit 365.43 km/h (227 mph).
Facelift
A facelifted version was launched in 2009, after being formally unveiled at the 2008 Paris Motor Show.
The modifications of the facelifted version include aesthetic exterior changes, mechanical changes, and interior features. Externally, the designs of the headlights and bumpers were revised. Some changes were made to the range of available engines and manual and automatic gearboxes, with the 1.4 TSI and 1.8 TSI engines and the seven-speed direct-shift gearbox transmission available for the first time. Inside the car, the stereo and steering wheels were revised, along with some of the interior trim.