- The VW Tera will rival the Fiat Pulse and Renault Kardian in emerging markets.
- Spotted almost undisguised, its design borrows cues from VW’s familiar SUVs.
- It will be powered by a 1.0-liter TSI three-cylinder engine, paired with FWD.
Volkswagen is adding yet another small SUV to its lineup, this time, aimed at emerging markets like South America and India. The new Tera has been spotted testing with minimal camouflage ahead of its official debut initially in Brazil later this year, with more markets to follow.
The Tera will serve as VW’s most affordable SUV in South America, sitting below the recently facelifted Nivus and T-Cross. That puts it in direct competition with budget-friendly models like the Fiat Pulse and Renault Kardian.
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Our spy photographers captured the prototype undergoing cold-weather testing, with only a few strategically placed stickers on the bumpers and lighting units concealing its final design. Despite its ties to the Skoda Kylaq, which was launched in India a few months ago, the VW Tera doesn’t appear to share any body panels with its Czech sibling. Instead, it borrows styling elements from other Volkswagen SUVs, giving it a “baby Tiguan” look that closely aligns with the official teaser.
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Familiar Underpinnings and Powertrain
The VW Tera is built on the MQB-A0 platform, the same architecture underpinning models like the Polo hatchback, Virtus sedan, Nivus crossover, and T-Cross SUV. Reports indicate it will feature a 2,566 mm (101-inch) wheelbase, matching the Polo Track, though with a taller stance.
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Under the hood, the Tera is expected to come with VW’s well-known 1.0-liter TSI three-cylinder engine, capable of running on both gasoline and ethanol. Power will be sent to the front wheels, with both manual and automatic transmission options available.
The VW Tera is set to debut in South America in the coming months, with production beginning at Volkswagen’s Taubate plant in Brazil. A launch in India is reportedly planned for 2026, expanding the model’s reach to another key emerging market.
