Volkswagen Tera Set for Possible India Launch in 2026

Volkswagen could soon enter India's hotly contested sub-compact SUV market with a fresh contender called the Tera. This model, which debuted in Brazil earlier this year, could end up here to take on the Kylaq, Exter and Punch.

Brazil-Spec Volkswagen Tera

In Brazil, the Tera stands out as a budget-friendly urban warrior, measuring around 4.15 meters long, 1.76 meters wide, and 1.49 meters tall. It rides on the MQB A0 platform, the same lightweight setup that underpins compact cars like the Polo. 

Power comes from two flex-fuel engine options. The 1.0-litre turbocharged three-cylinder petrol engine churns out 116 HP with Petrol, and 109 HP on Ethanol, with 165 Nm of torque. For those on a tighter budget, a simpler 1.0-litre naturally aspirated unit is offered, producing 84 HP with Petrol and 77 HP with Ethanol, delivering around 100 Nm of torque. 

Both engines are mated to a five-speed manual gearbox, with the 1.0 litre turbo also getting an optional six-speed automatic. 

Priced from about R$117,000 (roughly ₹17 lakh), it slots below the T-Cross in Volkswagen's lineup in Brazil. If its want to replicate the success of Kylaq, it needs to be priced around 8 lakh which means that a lot standard features on Brazilian spec Tera will be missing  when it comes to our shores. 

Volkswagen Tera India Launch

While the Brazilian Tera is already turning heads as an entry-level crossover, the India-spec version will get tweaks to fit local trends and tax regulations, with a length of under four metres. Expect the dimensions to be identical to the Skoda Kylaq. 

It will also share the Kylaq's underpinnings, including the localised MQB A0 IN platform built at Skoda's Pune plant. This shared DNA means similar driving dynamics and structural safety, which the Skoda already excels in. 

Under the hood, the India-spec Tera could stick to a familiar 1.0-litre TSI turbo-petrol engine, tuned to produce 115 HP and 178 Nm, mated to either a six-speed manual or a torque-converter automatic.

While it is too early to speculate about the features, it is likely to include a large touchscreen infotainment system with wireless smartphone connectivity, a 360-degree surround view, and ventilated seats, among others, in the top-end variants. Safety could include a potential 5-star crash rating. 

Pricing could be aggressive, possibly ranging from ₹8.00 lakh to ₹13.00 lakh ex-showroom, positioning it strongly in the segment to compete against the Tata Nexon, Hyundai Venue, Kia Sonet, Maruti Brezza, and the Skoda Kylaq

Volkswagen could potentially call this sub-compact SUV something else, though "Tera" still seems to be the most likely name. While there has been no official confirmation from the German carmaker, expect the Volkswagen Tera to be launched in 2026.