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Volkswagen Tera compact SUV to reveal on March 2 It will be based on the MQB AO platform The Tera gets a 1.0L TSI engine with manual and automatic gearbox Volkswagen India will introduce a new compact SUV in India in 2026
We informed you earlier that Volkswagen's smallest SUV, the VW Tera is scheduled to make global debut on March 2, 2025. The SUV will be released at Marquês de Sapucaí during the Rio de Janeiro Samba School Parade. It has been caught testing numerous times without camouflage on the European roads.
The Volkswagen Tera will be the brand's entry-level SUV and will be based on the same platform that underpins the Polo, T-Cross, Nivus and Virtus. In fact, the Skoda Kylaq, VW Taigun, Skoda Kushaq and Slavia are also based on the same architecture.
Ahead of the official debut on March 2, 2025, new images of the Volkswagen Tera has officially been released on the Internet. The latest images show some details of the final design of the new Tera. This compact SUV is designed by the team of Jose Carlos Pavone, Head of Design VW America. The latest pictures confirm that the Tera SUV will come with LED headlights and taillights.

The front has exclusive DRL signature that splits in two parts, while the rear has the interconnected LED tail-lights that is similar to the other VW SUVs including Tiguan, and T-Cross. The SUV also gets the differently styled 'C' column and the wheel arches, which will differentiate it from the rest of the VW SUVs. The SUV rides on newly styled five-spoke alloy wheels, which likely to be 16 or 17-inch in size.
As a reminder, Volkswagen had showcased the new SUV concept to the public in September 2024 during Rock in Rio, in Rio de Janeiro. The Tera is the production model of the concept. The new VW Tera will be produced at the Taubaté factory (SP). Based on the MQB A0 platform, the new compact SUV is expected to measure around 4 meters in length with a wheelbase of around 2,566mm. In the global markets, the SUV will challenge the Fiat Pulse and Renault Kardian.
The new Volkswagen Tera will be powered by a tried & tested 1.0-litre, 3-cylinder turbo petrol engine, which powers a wide range of VW cars in India as well as in global markets. The Brazilian-spec model will offer 116bhp, which is similar to the new-gen Polo. However, the same engine produces 128hp when offered with the Nivus and T-Cross. Transmission duties will be handled by a 6-speed manual or a 6-speed torque convertor automatic unit.
If reports are to be believed, Volkswagen could also add the entry-level 1.0L naturally-aspirated 3-cylinder engine in the basic variant of the Tera.
Volkswagen will launch a new compact SUV in the Indian market in 2026. The SUV will be based on the MQB AO IN platform that underpins the Skoda Kylaq; however, it will come with a different looks. We believe that the Tera could be the right product for the Indian market. The SUV will rival the likes of the Kia Syros, Hyundai Venue, Tata Nexon and others in the segment.
Also See - Tata Avinya to undercut Mahindra XEV 9e
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