...fifth model line, the company said on Thursday.
It said it would start making the small SUV Yeti model in an expanded factory in the eastern town of Kvasiny and also enlarge its factory in the northern Czech town of Vrchlabi.
Skoda's successful mid-range Octavia model will begin to be assembled at VW's plant in the Slovak capital Bratislava in addition to the base factory in Mlada Boleslav in the Czech Republic.
Skoda said it would hire more workers for the expanded production, but gave no details. It also did not reveal the cost of the planned investments.
Skoda raised its 2010 output target to 1 million cars from an earlier 800,000 earlier this month, up from 556,347 last year.
Skoda is the biggest Czech company, with sales of 7.1 billion euros last year, and the country's top exporter.
It has been expanding in India, China and other emerging markets.