Volkswagen Tera Sub-Compact SUV in the Works, Likely to Compete with Skoda Kylaq

Volkswagen is developing a new sub-compact SUV called the Tera, aiming to capture attention in the fast-growing compact SUV market. The Tera will be geared toward Brazilian buyers but could potentially be introduced in other markets, considering the strong demand for small SUVs worldwide. The compact SUV segment has been one of the fastest-growing vehicle classes globally, attracting buyers who want the SUV feel in a smaller, more budget-friendly package.

Key Features & Design

Volkswagen’s Tera will use the company’s MQB AO platform, a modular setup designed specifically for developing markets to offer better affordability without compromising quality. This platform is known for its versatility and is already used in several popular models. The Tera will likely share some features with its sibling models, aiming to deliver solid performance and advanced safety features.

Initial production for the Tera will be in Brazil, where it will slot below the Volkswagen T-Cross in the lineup. A compact size combined with a high ground clearance will give the Tera a strong presence on the road, while still keeping it maneuverable in city traffic.

Engine & Transmission

The Volkswagen Tera is expected to be powered by a 1.0-liter TSI petrol engine, similar to the engine in the Taigun model. Transmission options will include a manual gearbox and a six-speed automatic, giving buyers some choice based on driving preferences.

Market Outlook & Competitors

As Volkswagen develops the Tera, it will face strong competition in the sub-compact SUV category. This model’s features and positioning could make it a key player in markets with similar SUV demands.