- The VW Tera debuts as an entry-level SUV, sharing its underpinnings with the Polo.
- It was designed and developed in Brazil, where it will launch within H1 2025.
- It measures around 4m long and is powered by a turbo 1.0-liter three-cylinder engine.
Volkswagen has pulled the covers off its latest budget-friendly SUV, the Tera, designed for Brazil and other regional markets. Built on the same platform as the Polo, this subcompact model is positioned below the Nivus and T-Cross, making it the brand’s most affordable SUV offering. Despite its smaller footprint, the Tera borrows key design elements from VW’s larger SUVs, giving it a more upscale look than its price tag might suggest.
The Tera made its public debut during the Rio de Janeiro Carnival on March 2, with its market launch set for the first half of 2025.
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Despite its compact footprint, measuring close to 4 meters (157.5 inches) long, the VW Tera looks like a proper SUV, thanks to clever packaging and well-studied proportions. At the front, a slim grille is flanked by LED headlights and large bumper intakes which are mostly blocked.
From the side, sculpted fenders highlight the sporty beltline, complemented by diamond-cut alloy wheels. The rear features small LED taillights connected by a black trim piece, with a heavily clad bumper reinforcing the rugged aesthetic.
VW do Brazil
Inside, the Tera’s cabin follows Volkswagen’s familiar playbook. A digital cockpit with a free-standing infotainment display sits at the center, while physical buttons remain on the steering wheel and climate control panel, welcome news for those who prefer tactile controls over endless touchscreen menus.
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While there is a lot of plastic, the budget nature of the Tera isn’t as evident as in the Polo Track. The pictured version is a high-spec trim which explains the leather-style seat upholstery. VW has promised that the equipment will include modern connectivity features, wireless charging, ambient lighting, and an ADAS package.
Underpinnings and Powertrain
The VW Tera rides on the MQB-A0 architecture, found in the Polo and Polo Track hatchbacks, the Virtus sedan, the Nivus crossover, and the T-Cross SUV. Surprisingly, the SUV doesn’t share any body panels with the closely-related Skoda Kylaq which was recently launched in India.
VW has yet to reveal the full technical specifications of the Tera, but we know it will be powered by a turbocharged 1.0-liter three-cylinder engine in bi-fuel form and both manual and automatic transmission will be offered. As with most budget models in the segment, the Tera will be exclusively front-wheel drive.
Volkswagen is keen to highlight that the Tera is entirely designed, developed, and produced in Brazil. Production will take place at the company’s Taubaté plant, where it will roll off the same assembly lines as the Polo Track. While the automaker hasn’t detailed availability outside of Brazil yet, the Tera is expected to be introduced to other markets in the near future.