The first generation Fabia (given the internal type code 6Y) was officially presented at the Frankfurt Motor Show in September 1999 and production of this model started in October the same year. The estate version Fabia Combi was introduced in September 2000 at the Paris Motor Show. It was the first model to use the Volkswagen Group's A04 platform, which it shared with the Volkswagen Polo Mk4 and SEAT Ibiza. In the United Kingdom, for 2000, this car won What Car?'s "Car of the Year". The range started with the 1.0 8v Classic (which was cheaper than Volkswagen's smaller 3-door 1.0 Lupo when it went on sale) to the 1.9 PD TDi RS.[citation needed]

Part of the Fabia's success was the fact that all of its mechanical parts were developed by or in conjunction with Volkswagen, but were offered in a package that is priced to undercut other models in the Volkswagen Group. The only traces of non-VW Škoda left in the Fabia are the 1.0 and 1.4 8v "MPI" engines, which were modifications to Škoda's own 1.3 engine, and were used in pre-Volkswagen Škodas such as the Estelle and Favorit.