[bantic]

Although the Beetle-alike prototype of 1935 did not come to fruition, the rear-engined layout was revived. The success of the Beetle and its imitators had established such a configuration as a popular choice for budget cars, and the Czech government had begun to focus its attention on providing cheap transport for the masses. The 1000 MB (1964) was cheap to develop and produce, as well as meeting the brief for a lightweight, economical four-seater. It had a four-cylinder, 988cc 42bhp engine (liquid-cooled, rather than air-cooled like the Beetle's), which featured an aluminium block casting, rare for the time, but with a cast-iron cylinder head. Although early examples suffered problems with overheating and low oil pressure, subsequently this engine formed the basis of all Skoda four-cylinder units for the next 40 years! At the time, the 1000 MB was praised by the international press as well as by the domestic media, and it fared well in tests against similarly rear-engined cars from Renault, Fiat, Volkswagen and Simca. 1100 MB models (1107cc, 52bhp) followed, and by the mid-1960s, Skoda was making up to 600 cars a day at Mlada Boleslav. Its cars were also competing successfully in motorsport events, including Formula Three; Skoda ran a small customer department providing rally-homologated cars for private clients, as well as a works team. Team manager Jiri Kotek reminisced to Rally Sport: "Although there was a passion to go rallying in anything that was available, to start with rally drivers still preferred the Octavia. Within two years or so they discovered the MB cars were actually quite different to what they expected. They found these cars were like a little Porsche, easy to drive on gravel and as for asphalt, well, the roads were all badly broken up in those days..."

The front-engined Octavia Combi continued in production, however, as the rear-engined layout made packaging an estate car difficult. Variants on the 1100 MB theme did ensue, though, including the 1203 van of 1968 (Skoda's answer to the Volkswagen Kombi/Microbus camper van).

In August 1969, the Mlada Boleslav factory was damaged for a third time, a fire raging for three days which destroyed a huge area. The successor to the 1000/1100 MB was launched just months later nonetheless: the 100/110. In the UK, this undercut the Mini Cooper whilst offering far more space, and its neat, fashionable styling was commended. Brakes, tyres and wipers were all upgraded too. However, Motor magazine concluded that "all these improvements, significant and useful as they are, cannot quite disguise the fundamental defects which derive from the age of the design and its basic nature. In consequence its cornering power remains markedly inferior to that of such British rivals as the BLMC 1100, the Ford Escort or the Vauxhall Viva. Ride and engine noise are also well below par, although road and wind noise are better than average. Against these defects it must be acknowledged that the Skoda is very fully equipped... at prices ranging from £669 to £740 it is also very cheap." Skoda's image was improved by the "poor man's Porsche" - the 110 R two-door fastback Coupe, whose rear-engined, rear-wheel drive handling was potentially exciting, to say the least, if not sometimes hair-raising and unpredictable.