Volkswagen confirmed in August 2026 that it will launch a new sub-4-metre SUV in India in 2027. While the company has not officially confirmed the name, the model is widely referred to as the Tera, the same name already used for Volkswagen’s closely related compact SUV in Brazil.

It will be built on the India-specific MQB-A0-IN platform shared with the Skoda Kylaq and is expected to retain the same 2,566 mm wheelbase. Distinct exterior and interior styling will differentiate it from its Skoda sibling.

Power is expected to come from the 1.0-litre TSI turbo-petrol engine (approximately 114-116 bhp and 178 Nm), paired with a manual gearbox and an eight-speed automatic transmission.

The Tera will be Volkswagen’s most affordable SUV in India and will re-enter the lucrative sub-4-metre segment that accounts for a large share of passenger vehicle sales.