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Volkswagen Tera will be less powerful than the T-Cross and Kylaq It will have the 109hp/165Nm, 1.0L turbo petrol engine The Kylaq gets a 114bhp/178Nm, 1.0L engine Tera also gets an entry-level 1.0L MPI engine
Volkswagen has recently revealed the new Tera sub-4 meter SUV in Brazil. The company has not revealed the interior and engine specifications of the compact SUV; however, reports claim that the small SUV will be powered by a 1.0L turbocharged petrol engine. The latest spy images confirm that the new VW Tera will be less powerful than the India-spec Skoda Kylaq.

The latest spy images reveal that the Volkswagen Tera will come with a less powerful 1.0 turbo engine. The prototype has the new 170 TSI badge placed to the rear lid. This is the same powertrain that powers the global Polo and Virtus. This engine offers two states of tunes 109/116hp and 165Nm of torque. The Skoda Kylaq gets the same 1.0L 3-cylinder turbo petrol engine that produces 114bhp and 178Nm of torque. While the power figures for the new Tera could remain similar or closer to Kylaq, the later will be more torquier.
Adding to it, the Tera will also come with a smaller 1.0L 3-cylinder MPI engine, naturally-aspirated that also powers the Polo in global markets. This will be a cheaper version of the sub-4 meter SUV and will compete mainly with Fiat Pulse and Renault Kardian.
The VW Tera will be manufactured in the Taubate factory, Sao Paulo, Brazil. It will be positioned between the Polo hatchback and the Nivus Coupe SUV in the brand's global line-up. The new Tera is built on the Volkswagen Group's MQB A0 platform that underpins the Nivus, Polo, T-Cross, Taigun, Kushaq and Skoda Kylaq.
The SUV follows the brand's new design identity, which we have already seen on the latest Tiguan and the Taos. It features LED lighting system, aggressive front bumper with big air intake, newly designed ORVMs and LED tail-lights connected by a black bar with silver strips. The SUV has a unique DRL signature, which has split lighting in two segments above the headlights. There is a chrome strip that connects the two sides. The higher version will come with five-spoke diamond-cut 17-inch alloy wheels.
Volkswagen is yet to make an official announcement on the launch of a new compact SUV in India. However, media reports reveal that VW will introduce a new sub-4 meter SUV in the country in 2026. It will be based on the MQB A0 IN platform that underpins the Skoda Kylaq, VW Taigun and Virtus in India.
The India-spec Tera could receive some design and interior changes to differentiate itself from the global model. While the global-spec Tera is reportedly to measure slightly above 4 meters in length, the India-spec model will sit below 4 meters. It will rival the likes of the Hyundai Venue, Kia Sonet and others in the category.
Also See - 2026 Kia Seltos - Frequently Asked Questions
Source - Motor1 Brasil
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