Volkswagen New Compact SUV to Rival Hyundai Venue and Kia Sonet

It was speculated that Volkswagen will launch the new Terra compact SUV in India in 2026. However, VW’s India Brand Director, Ashish Gupta, has confirmed that the Tera will not be launched in India. Instead, the German brand is working on an all-new sub-4 meter SUV for the Indian market. 

Volkswagen Tera Not Launching in India

The Tera is currently on sale in Brazil and measures over 4 metres in length. This will make the compact SUV expensive for the Indian market, as it won’t be eligible for tax relaxation available on cars measuring under 4 metres. Volkswagen is already selling the Taigun, which is 4.2 metres long. Launching a product in similar size as Taigun won’t make any sense, as it will lead to cannibalization. 

Skoda Kylaq Based Compact SUV

Volkswagen is working on an all-new compact SUV specifically for India, and this model will sit under 4 metre. It will be an all-new model developed keeping Indian buyers in mind. The new compact SUV will be based on the modified MQB A0-IN platform that also underpins the Skoda Kylaq. In fact, Taigun, Virtus, Slavia and Kushaq are also based on the same MQB A0 IN architecture. 

In terms of features, the small SUV could get a larger touchscreen infotainment unit with wireless Android Auto and Apple CarPlay, a digital driver’s display, automatic AC, powered driver’s seat and others. VW could also add advanced driver-assistance features. 

While the platform and powertrains will be shared with the Skoda Kylaq, the new VW compact SUV will have its own design and interior. It is likely to share the features with the VW Taigun, which will soon receive a mid-life update. The SUV will be powered by a 1.0-litre, 3-cylinder TSI turbo-petrol engine with 6-speed manual and a 6-speed torque converter automatic gearbox options. 

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