Volkswagen has officially introduced its latest entry-level SUV, the Volkswagen Tera, unveiling it during the vibrant Carnival celebrations at the Sambadrome in Rio de Janeiro. Designed and developed exclusively in Brazil, the Tera is positioned as an affordable SUV, competing directly with models like the Fiat Pulse and Renault Kardian in the $100,000 to $140,000 price bracket, which translates to approximately Rs 14.8 lakh to Rs 20 lakh. The vehicle will be produced at Volkswagen’s Taubaté manufacturing facility in Brazil and is based on the MQB-A0 platform, a versatile architecture that also underpins several Volkswagen models, including the Polo. However, if the Tera is introduced in India, Volkswagen might rework its dimensions to fit within the sub-4-meter category, ensuring it qualifies for tax benefits specific to this segment. There is speculation that the Indian version may share components, body panels, and interior features with the Skoda Kylaq, a model developed specifically for the Indian market.
The design of the Volkswagen Tera reflects the brand’s contemporary SUV styling, taking cues from the latest-generation Tiguan and the recently facelifted Taos. The front profile features an aggressive stance, highlighted by LED headlights and a distinctive DRL pattern. Its honeycomb-patterned bumper adds a sporty appeal. Unlike its larger SUV siblings, the Tera does not come with an illuminated grille but sports a sleek chrome strip connecting the headlights. The rear follows Volkswagen’s signature styling, with taillights connected by a black bar accented with silver, a design element reminiscent of models like the Nivus, T-Cross, and the latest European-spec Tiguan. Rolling on stylish 17-inch diamond-cut alloy wheels, the SUV presents a bold aesthetic, though lower trims may feature steel wheels with hubcaps. If introduced in India as a sub-4-meter offering, the design elements are expected to remain largely unchanged.
Inside, the Volkswagen Tera embraces a modern, tech-focused cabin layout, drawing inspiration from the brand’s ID. electric vehicle series. It is equipped with a 10-inch fully digital instrument cluster and the VW Play Connect infotainment system, offering full connectivity features tailored for Brazil and Argentina. Additional highlights include inductive smartphone charging, ambient lighting, and a comprehensive Advanced Driver Assistance Systems (ADAS) package. If adapted for India, the model could retain most of these advanced features while undergoing cost optimizations in the lower variants to ensure competitive pricing in the market.
While Volkswagen Brazil has yet to confirm the official powertrain details, reports indicate that the Tera will be powered by a 1.0-liter, three-cylinder turbocharged engine, available with both a six-speed manual and automatic transmission. If the model makes its way to India, it is expected to adopt the same powertrain as the Skoda Kylaq, likely offering a 1.0-liter turbo-petrol engine producing around 115-120 hp, with options for both manual and automatic gearboxes. This would position it directly against some of India’s most popular subcompact SUVs, including the Maruti Brezza, Tata Nexon, Hyundai Venue, Kia Sonet, Kia Syros, and Mahindra XUV3XO.
The Volkswagen Tera made its first public appearance in a heavily camouflaged form at Rock in Rio 2024 before being officially revealed in its production guise. Its launch in Brazil is scheduled for May 2025. In India, Volkswagen has already confirmed plans for a new sub-4-meter SUV, making the Tera a strong candidate for localization. If adapted to meet Indian regulations and price expectations, it could make its way to the market by 2026. With its bold styling, advanced technology, and the robust MQB platform, the Tera has the potential to become a formidable contender in India’s rapidly growing subcompact SUV segment. By leveraging its collaboration with Skoda and ensuring localized production, Volkswagen could strategically position the Tera to compete effectively against established rivals, offering Indian buyers a fresh and compelling SUV option.
