Introduction
Volkswagen has introduced the Tera, a subcompact SUV designed to make waves in the affordable SUV market. Unveiled in Brazil during the vibrant Rio de Janeiro Carnival on March 2, 2025, at the Sambadrome, the Tera marks Volkswagen’s entry into the highly competitive sub-4-meter SUV segment. While initially launched for the Brazilian market, the Tera is also poised for a potential India launch in 2026, tailored to meet local tax benefits for sub-4-meter vehicles. This article covers the Tera’s launch, key specifications, and its positioning in the global and Indian markets.
Launch Details
The Volkswagen Tera made its global debut in Brazil, first teased in September 2024 under camouflage at the Rock in Rio festival. The official unveiling took place during Brazil’s Carnival festivities, showcasing the SUV’s exterior and interior design in a vibrant, public setting. The Tera is set to go on sale in Brazil by May 2025, with a starting price range of R$100,000 to R$140,000 (approximately ₹14.8 lakh to ₹20 lakh). It will also be exported to other Latin American countries like Paraguay and Colombia, as well as South Africa, with production based at Volkswagen’s Taubaté plant in Brazil.
For India, Volkswagen has not officially confirmed the launch timeline, but reports suggest the Tera could arrive by January or March 2026, potentially as a sibling to the Skoda Kylaq. To align with India’s sub-4-meter tax regulations, the Tera’s dimensions may be adjusted to fall under 4 meters in length, making it eligible for tax benefits. Bookings in India are expected to start in October 2025 with a ₹25,000 token amount.
Read also: Hyundai New Venue 2025: A Refreshed Compact SUV Ready to Impress
Key Specifications
Platform and Dimensions
The Tera is built on the MQB A0 platform, shared with models like the Volkswagen Polo and T-Cross. In Brazil, it measures approximately 4 meters (157.5 inches) in length with a wheelbase of around 2,566 mm. For India, it will likely be tweaked to a sub-4-meter length (around 3,980 mm) to qualify for tax incentives. The SUV offers a boot capacity of 385 liters, balancing compact dimensions with practical space for small families.
Engine and Performance
The Tera is powered by a 1.0-liter, three-cylinder TSI turbo-petrol engine, delivering 114–116 bhp and 178 Nm of torque. This engine, also used in the Skoda Kylaq and Volkswagen Taigun, offers a balance of performance and efficiency, with an estimated fuel efficiency of 18–20 kmpl under standard conditions. Transmission options include a six-speed manual and a six-speed torque converter automatic. In Brazil, a flex-fuel variant supporting gasoline and ethanol is available, but India is expected to receive only the petrol version. The Tera is strictly front-wheel drive, keeping costs competitive.
Design
- Front: Slim LED headlights with integrated DRLs, a prominent VW logo on a narrow grille, and a honeycomb-patterned bumper.
- Side: Sculpted fenders, 17-inch diamond-cut alloy wheels (steel wheels on lower trims), black cladding on wheel arches, and a blacked-out roof for a floating effect.
- Rear: LED taillights connected by a black trim with silver accents, a sporty bumper, and a unique “Easter Egg” detail featuring silhouettes of the Beetle, Gol, and Tera under the rear wiper.
Interior and Features
The Tera’s cabin mirrors the Skoda Kylaq’s layout, offering a premium yet practical experience. Highlights include:
- Infotainment: A 10.25-inch free-standing touchscreen with VW Play Connect, supporting wireless Android Auto and Apple CarPlay.
- Instrumentation: A 10-inch digital instrument cluster.
- Comfort: Leatherette seats (top variants), dual-zone climate control with rear vents, ambient lighting, wireless smartphone charging, and a panoramic sunroof (mid and top trims).
- Safety: Six to eight airbags, ABS with EBD, traction control, ESP, ISOFIX mounts, and Level 1 ADAS (lane assist, adaptive cruise control).
The dashboard features a multi-layered design with trapezoidal central AC vents and physical buttons for climate control, blending modern tech with tactile usability.
Market Positioning and Competition
In Brazil, the Tera competes with affordable subcompact SUVs like the Fiat Pulse, Renault Kardian, and Citroën Basalt. In India, it will take on the Maruti Suzuki Brezza, Kia Sonet, Tata Nexon, Hyundai Venue, Mahindra XUV 3XO, and its sibling, the Skoda Kylaq. Priced between ₹8 lakh and ₹15 lakh (ex-showroom), the Tera aims to offer premium features, German engineering, and robust build quality at a competitive price point. Its emphasis on safety, technology, and design makes it a strong contender in the subcompact SUV segment.
Variants and Pricing
The Tera is expected to be offered in four variants in India: Comfortline, Highline, Topline, and GT. The estimated ex-showroom price range is:
- Entry-level: ₹8–9 lakh
- Top-end: ₹12–15 lakh
This pricing positions the Tera as a premium alternative in the sub-4-meter segment, justifying its cost with features typically found in higher-priced SUVs.
Future Prospects
Volkswagen’s strategy with the Tera reflects a focus on expanding its SUV portfolio in growth markets like India and Latin America. The Tera’s success
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