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We reported earlier that Volkswagen will introduce an all-new compact SUV in Brazil. Internally codenamed A0, the new entry-level SUV finally has an official name. Called Volkswagen Tera, the new compact SUV will be introduced in global markets in 2025. Positioned below Nivus and T-Cross, the new VW Tera will directly rival the Fiat Pulse and Renault Kardian.
The new Tera will come with the brand's new design language, which is offered on the latest Volkswagen launches in Europe and North America. The compact SUV has been caught undergoing testing multiple times near Sao Bernardo do Campo (SP) factory.

The compact SUV design is inspired from the European Tiguan. The front fascia has full LED headlights with daytime running lights positioned on the top. There is no illuminated grille connecting the two sides, while the uniquely styled bumper has a wide black bar that offers a sense of robustness and aggressive looks.
The side profile has clean surfaces with strong lines, rounded wheel arches with creases and black plastic cladding. There are worn-out plastic appliques on the front fenders, which gives it an SUV characteristic.
The new Volkswagen Tera SUV will be based on the MQB A0 platform that underpins the Polo, T-Cross, Nivus and Virtus in global markets. The same platform is used to develop the Taigun and Skoda Kushaq. In fact, the upcoming Skoda Kylaq will also be based on the same architecture. In terms of size, the new model will have a wheelbase of around 2566mm. It will measure around 4 meters in length. The SUV will share most of its interior and features including the instrument console and infotainment unit with the Nivus Coupe SUV.
Powering the new VW Tera is a 1.0-litre, 3-cylinder, turbocharged petrol engine with manual and 6-speed automatic gearbox options. It is rumoured to produce up to 116bhp when fueled with ethanol. The Kylaq also gets the 1.0L TSI engine with 6-speed manual and 6-speed torque convertor automatic gearbox.
Volkswagen is reportedly working on an all-new sub-4 meter SUV, which will be based on Skoda Kylaq. The new compact SUV is likely to be launched in our market in 2026. The SUV will be significantly different than the Kylaq. It is expected that the India-spec model will share the styling and interior with the VW Tera.
Also See - Maruti Suzuki Vitara Electric Fully Revealed - India Launch By March
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