Volkswagen Tera SUV - India Launch, Estimated Price & Specs

Volkswagen recently unveiled its all-new Tera subcompact SUV at Carnival celebrations at the Sambadrome in Rio de Janeiro. It is the smallest and most affordable SUV from Volkswagen, designed and developed in Brazil. Volkswagen’s Taubate manufacturing facility in Brazil will serve as a production hub for this compact SUV. The Volkswagen Tera is built on the MQB-A0 architecture that also underpins multiple VW cars, including Polo (in global markets). The India-specific Skoda Kylaq has also been designed on the same platform.
 

India Launch Timeline
 

The Volkswagen Tera will also make its way to India. However, the German automaker will make some changes to the India-spec version to avail tax benefits offered in the sub-4 metre SUV segment. Furthermore, the new VW compact SUV will share body panels, interior features and components with the Skoda Kylaq. Official launch details of the Tera are yet to be revealed. However, it is expected to see a market release in 2026. Once launched, it will go up against the Hyundai Venue, Kia Sonet, Maruti Brezza, Mahindra XUV 3XO and Tata Nexon.
 

Expected Price Range
 

Prices of the new Tera SUV are expected to start around Rs 8 lakh for the entry-level variant, while the top-end trim is expected to cost nearly Rs 15 lakh. Its sibling, the Skoda Kylaq is currently available within the price range of Rs 7.89 lakh – Rs 14.40 lakh (all-ex-showroom).
 

Engine Specifications
 

The engine details of the new Volkswagen compact SUV are still under wraps. Reports suggest that VW might use the 1.0L, 3-cylinder TSI turbo petrol engine with two gearbox options – a 6-speed manual and a 6-speed torque convertor automatic. This compact SUV might also borrow the 1.0L turbo petrol engine from the Skoda Kylaq. This motor will offer power around 115 bhp - 120 bhp.
 

Interior & Exterior
 

The cabin layout of the new Volkswagen Tera appears to be inspired by the Volkswagen ID electric SUV. This new Volkswagen compact SUV features a freestanding 10.25-inch touchscreen infotainment system and a 10-inch fully digital instrument cluster. The SUV comes with the two trapezoidal central AC vents positioned underneath the info unit, a steering wheel, leather upholstery, smartphone connectivity, ambient lighting and ADAS (advanced driver assistance system) suite.
 

The Volkswagen Tera flaunts the brand’s new design philosophy, deriving design inspiration from the all-new Taguan SUV. Up front, it carries a familiar grille, bumper with honeycomb pattern, sleek LED headlamps connected via a chrome strip and a unique DRL signature. The Tera has been assembled with 17-inch diamond-cut alloy wheels, which will be reserved for the higher trims. The lower variants are likely to come with steel wheels with wheel caps.
 

The new VW SUV has a sloping roofline with roof rails and a short antenna on it. Some of its other design highlights include pull-type door handles, LED taillamps connected through a black bar with silver accents, an integrated rear spoiler, a rear bumper and rear wipers and washers.

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