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The Toyota Yaris-size Fabia is considered to be a good sales prospect in the current market.
However, currency exchange rates are making it difficult to build a case for the light car locally, Skoda spokesman Karl Gehling says.
Earlier this year the head of Skoda Australia, Matthew Weisner, gave a glimmer of hope by saying that the Fabia RS Concept shown at Geneva could be the best way to launch the car here.
The RS could help launch Fabia with a top-down strategy.
Like Suzuki and its Alto, Skoda also has an option of sourcing the future Fabias from a low-cost country like India, where the car will be built alongside the new-generation Polo.
The RS uses a 1.4-litre TSI four cylinder engine, from the Golf, which has a turbocharger and supercharger for performance and economy.
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