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  Škoda Fabia could be a big hit in Australia but the currency exchange rate is making it difficult for it to enter the small vehicle market. Photo Gallery

The Skoda Fabia is still on the wishlist for the company?s Australian arm.

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.