Volkswagen Names New SUV Tera: India Launch Likely?

The VW Tera is built on the MQB A0 platform and gets a 1-litre turbo-petrol engine similar to the Taigun, and has a similar footprint as the upcoming Skoda Kylaq

It is no news that Skoda is set to launch a new sub-4m metre SUV, the Kylaq, in India. However, its Volkswagen sibling has yet to confirm whether it will bring a similar subcompact SUV based on the Kylaq, unlike how it confirmed the Taigun and Virtus after Skoda launched the Kushaq and Slavia. 

That said, the German carmaker has been developing a new SUV (likely a sub-4m offering) for the global market and has now christened it the Tera. This move has raised the possibility of VW introducing the upcoming Tera in the Indian market and several factors which we believe are in its favour. Let us check them in detail:

Why We Think VW Should Bring The Tera To India

Volkswagen should consider bringing the Tera to India for several compelling reasons. Firstly, Volkswagen's sibling brand, Skoda, is preparing to unveil its Kylaq sub-4m SUV globally soon which will hit the Indian market in 2025. Volkswagen, for now, doesn’t have any offering under four metres since the departure of the Polo back in 2022, and could thus benefit from having a new model to cater to a wider section of buyers.

Another reason for bringing the Tera to India is the platform-sharing benefit between Skoda and Volkswagen. The Kylaq, being a made-in-India product, uses the same platform, engine, and gearbox as many existing Skoda and Volkswagen models in the country, such as the Virtus, Slavia, Kushaq and Taigun. This shared technology would make it easier and more cost-effective for Volkswagen to introduce the Tera locally, as the platform and powertrain can be manufactured at a lower cost. Bringing the Tera to India would also generate sales volumes in India that would justify the investment made by the company on the sub-4m SUV platform.

Also Read: Skoda Kylaq To Be Revealed Tomorrow: All You Need to Know

The Tera, which could have a starting price well under Rs 10 lakh, would also serve as the most affordable Volkswagen car in India, making the carmaker’s lineup more accessible to buyers. It could also fill the void left by the Volkswagen Polo, which was a popular sub-4m model but was discontinued later in 2022, following which the sub-4m space for Volkswagen India has remained empty.

Globally, Volkswagen seems to be pulling back a bit from EVs and is focussing on combustion-powered vehicles. In India too, the launch of the Volkswagen ID.4 electric SUV has been delayed. The Tera could hence be part of Volkswagen’s strategy to continue leveraging combustion engine vehicles in India. Bringing the Tera to India would allow Volkswagen to capitalise on the popularity of internal combustion engine vehicles before fully transitioning to an electric lineup in the future.

It is worth noting that Volkswagen's last major new car launch in India was the Virtus back in early 2022, and since then, the brand has only rolled out minor updates. The Tera could be just what Volkswagen needs to refresh its lineup and spark renewed interest in the Indian market.

What do you think? Let us know in the comments below. But before that, let us know more about the Volkswagen Tera SUV.

More About The Volkswagen Tera

The VW Tera was teased in October 2024 which gave us a glimpse of the upcoming Volkswagen Tera, revealing that its front design will closely resemble that of the new Volkswagen Tiguan, with a similar headlight setup, grille, and bumper. However, unlike the Tiguan, the Tera will not feature the LED light running through the grille.

It is built on the MQB A0 platform which also underpins models like the Polo, T-Cross and Nivus available overseas. It will however be positioned below the T-Cross (called the Taigun in India)

The Brazil-spec Tera will be powered by a 1-litre turbo-petrol engine, similar to the lower variants of the Taigun and Virtus, that delivers 115 PS and 178 Nm. This engine will be paired with either a 6-speed manual or a 6-speed automatic transmission.

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