Volkswagen's Czech unit Skoda Auto reveals plans to launch a new model, its union's weekly newsletter reported. However, the details of its pricing and production schedule were still not disclosed.

While, the Daily Mlada Fronta Dnes cited that the model could be tagged around $13,650, putting it somewhere between its smaller Fabia make and family sedan model Octavia.

Skoda union Chief Jaroslav Povsik was cited as saying a mock-up of the new car, with a working name of A Entry, has been presented. He posted the new model will be bracketed in an affordable range.

Skoda has registered 684,226 cars sale last year, including 273,590 Octavias, backed by car scrapping subsidies in western markets like Germany and expansion in China.

The carmaker exports nearly 90 percent of its production and is a bellwether for the Czech economy, which is speculated to post a modest expansion this year after contracting more than 4 percent last year.

Skoda has cut production of its smaller makes, like Fabia, to start this year, with the end of scrapping schemes hitting demand.