The communists of the former Soviet Union would have been thoroughly irritated by the facts and figures proudly released by Skoda at the launch of its new Fabia.

They show that the sales figures of the Czech Republic company, once in the thrall of communist Moscow but now part of the Volkswagen Group, continue to soar thanks to products that actually fulfil people’s needs and that they are proud to own; cars that are modern, safe, reliable and good-looking. By the whiskers of Lenin’s beard, whatever next?

It has been like that for a while. Last year, the Czech company produced 549,667 cars, almost double the 1995 figure of 279,363. In 1988, as the Soviet Union approached its demise, production totalled only 158,760.

Now, with modern factories in several countries, expansion in India, production starting in China and a new assembly facility under construction in Russia, sales of a million cars a year — the very suggestion of which would once have been regarded as a great Skoda joke — look distinctly possible. And it is the new Fabia that can help it to come true.

Skoda’s product maxim is not based on old German or Czech philosophies but on the thoughts of a Swede called Ingvar Kamprad: “Everybody knows how to design a table that is expensive and good. But the real challenge is to produce a table that is good and cheap.”

Mr Kamprad knew how to do it; after all, he was the founder of IKEA.

In fact, Skodas are not particularly cheap but they are certainly good, coming high in the discerning ratings of the quality-monitoring JD Power Report. Skoda says that market research shows nine out of ten present owners would recommend a Fabia to a friend. It does not say if the friendship continues after the sale, but I suspect it would.

The new Fabia hatchback — an estate version is planned as well — will also win friends. Up against stiff competition, including the Renault Clio, Ford Fiesta, Peugeot 207, Toyota Yaris and Fiat Grande Punto, it scores high marks on space, looks and practicality. The really amazing news, though, is that its designers must have actually been shopping.

Put a few plastic bags of food in the boot of most cars and they roll around with a frolicsome determination on every corner.

Not so in the Fabia. On the backrests of the rear seats are hooks on which to hang those recalcitrant bags. For a weekend shopping trip, there are a couple of extra ones that can be unfolded. That is Skoda’s simple commonsense design in action.

There are other neat touches in the same vein, including retaining wires running in the front-door bins to keep a road atlas or copy of The Times neatly in place.

The other big plus for the new Fabia is its extraordinarily spacious interior. Externally, the car is little larger than the previous Fabia that was launched eight years ago, but internally it has been given a touch of the Tardis, with a surprising amount of room for tall occupants of the rear seats and lots of space in the front, too, with plenty of seat and steering-wheel adjustment. Compared with a Ford, it feels at least halfway between a Fiesta and a Focus.

Engine choice is wide. Most popular will probably be the 1.4litre and smooth 1.6 petrol units — and low CO2 emission, three-cylinder 1.4 diesels in 68bhp and 79bhp forms — although the lower-powered version was unacceptably noisy and vibratory. There is also a 103bhp 1.9 diesel.

The smallest Fabia engine is the biggest surprise. A 1.2litre, three-cylinder petrol with 68bhp (59bhp optional), it is willing and economical, albeit not overendowed with torque, and not for those in much of a hurry.

The Fabia’s ride is excellent and handling sharp and sure on winding and poorly surfaced roads.

At the birth of the motor car era, the Red Flag Act was introduced to curb speed and development; it was soon abandoned. Skoda’s potential was also curbed by a red flag; its removal took rather longer.

But now it is accelerating hard towards its million-a-year sales dream — and I’m not joking.

Specification

Car Skoda Fabia
Engine 1.4 litre, 84bhp
Transmission Five-speed manual
Performance 0-62mph in 12.3sec, top speed 108mph
Fuel consumption combined 1.4, 43 mpg
CO2 emissions 155g/km
Prices Not confirmed but about £9,500 to about £13,000
On sale April

Alternatives

Renault Clio Chirpy, attractive, handles well.
Ford Fiesta Big seller, competent; diesels very good
Peugeot 207 Roomy, distinctive road presence
Toyota Yaris Has Toyota’s reputation for reliability
Fiat Grande Punto Attractive styling, space efficient, likeable