Volkswagen has officially unveiled its new entry-level SUV, the Volkswagen Tera, during the Carnival celebrations at the Sambadrome in Rio de Janeiro. Designed and developed entirely in Brazil, the Tera is positioned as an affordable SUV, competing with the Fiat Pulse and Renault Kardian in the R$ 100,000 – R$ 140,000 price range (Rs 14.8 lakh to Rs 20 lakh).
Positioning & Platform
The Tera will be manufactured at Volkswagen’s Taubaté plant in Brazil and is based on the MQB-A0 platform, which also underpins multiple Volkswagen models like the Polo. However, for India, Volkswagen could rework the Tera into a sub-4m SUV to take advantage of the tax benefits offered in the segment. The Indian version is likely to share components, body panels, and interior elements with the Skoda Kylaq, which is developed specifically for India.
Exterior Design & Features
The Volkswagen Tera showcases the brand’s latest SUV design language, drawing inspiration from the new-gen Tiguan and Taos facelift. It features an aggressive front fascia with LED headlights and a unique DRL signature, while the honeycomb-patterned front bumper gives it a sporty look. Unlike some of its larger SUV siblings, the Tera does not feature an illuminated grille but instead has a sleek chrome strip connecting the headlights.
At the rear, the Tera follows Volkswagen’s latest styling trend, with taillights connected by a black bar with silver accents, similar to the Nivus, T-Cross, and new European Tiguan. It rides on 17-inch diamond-cut alloy wheels, but lower trims are expected to get steel wheels with hubcaps. The design elements could remain largely the same if the Tera makes its way to India in a sub-4m version.
Interior & Technology
Inside, the Volkswagen Tera follows a modern, high-tech layout inspired by VW’s ID. electric models. It comes with a 10-inch fully digital instrument cluster and the VW Play Connect infotainment system, offering full connectivity in Brazil and Argentina. Other features include inductive smartphone charging, ambient lighting, and an ADAS (Advanced Driver Assistance Systems) package. The India-bound version could retain most of these features but might have some cost optimizations, especially in lower variants, to keep the pricing competitive.
While Volkswagen Brazil has yet to confirm the Tera’s engine specifications, reports indicate that it will use the 1.0-liter 3-cylinder turbocharged engine, paired with a six-speed manual or automatic transmission. If the Tera makes its way to India, it will likely use the same engine as the Skoda Kylaq, meaning it could get the 1.0L turbo-petrol engine producing 115-120 hp, available with both manual and automatic transmission options. This would put it in direct competition with the Maruti Brezza, Tata Nexon, Hyundai Venue, Kia Sonet, Kia Syros, and Mahindra XUV3XO.
Market Strategy & India Launch Timeline
The Volkswagen Tera first appeared at Rock in Rio 2024, heavily camouflaged, before being fully revealed now. In Brazil, its official launch is set for May 2025. For India, Volkswagen has already confirmed a new sub-4 meter SUV, and the Tera’s design, size, and positioning make it an ideal candidate. If Volkswagen adapts the Tera to meet India’s sub-4m regulations and price sensitivities, it could arrive in 2026.
With a bold design, modern tech, and Volkswagen’s MQB platform, the Tera could be a strong contender in India’s booming sub-compact SUV segment. By leveraging its partnership with Skoda and localizing production, Volkswagen could position the Tera competitively against its well-established rivals, bringing a new, fresh alternative to Indian SUV buyers.