Volkswagen Tera subcompact SUV Teased Ahead Of Brazil Debut: Will It Come To India?

Volkswagen is expanding its global SUV lineup with the debut of a new subcompact SUV model for the Brazilian market, where the car will be positioned as a direct competitor to the Skoda Kushaq. This new addition is expected to follow Volkswagen’s recent strategy of platform-sharing, utilising existing architectures, technology, and powertrain options already seen in the brand's other offerings. For the Indian market, Volkswagen plans to slightly modify the design, shortening the vehicle’s length to under 4 metres. This alteration is intended to help the model fit into India's sub-4-metre compact car segment, allowing Volkswagen to leverage local tax benefits that incentivise shorter vehicles.

Volkswagen has teased images of the upcoming SUV, showing select design elements and the name badge. From the visuals released, it appears that the front styling aligns with the familiar design cues present in the brand's global lineup, featuring Volkswagen’s signature family grille and light arrangement. The rear image, which showcases the vehicle's badging, confirms the name of the model. While Volkswagen has not disclosed full design details, these teasers suggest that the new SUV will be immediately recognisable as a part of the Volkswagen family. 

Volkswagen’s new subcompact SUV is anticipated to come equipped with an array of features, in line with consumer expectations for the compact SUV segment. Speculated highlights include a 360-degree camera, automatic climate control, and LED lighting for both the interior and exterior. The interior will likely feature a premium look, including leatherette upholstery and dual digital screens, which should cover infotainment and driver information needs. Volkswagen’s commitment to high-tech interiors, with digital interfaces and connectivity options, signals an emphasis on attracting young, tech-savvy consumers in emerging markets.

The SUV’s powertrain lineup will differ between the Brazilian and Indian markets, reflecting local fuel preferences and regulatory needs. In Brazil, where flex-fuel vehicles are popular due to a mix of ethanol and petrol usage, the new SUV is likely to share engine options with the existing Volkswagen T-Cross. This adaptation allows for a vehicle that suits the region’s energy infrastructure while remaining competitive with local offerings.

In India, however, the vehicle will be offered with Volkswagen’s 1.0-litre TSI engine, producing around 114 bhp. This engine has already been well-received in other Volkswagen models such as the Virtus and the Taigun in India. Additionally, reports suggest that Volkswagen may introduce a higher-performance variant equipped with a 1.5-litre turbocharged engine mated to a DSG automatic transmission. 

When it launches, Volkswagen’s subcompact SUV will enter an intensely competitive segment populated by well-established players. In Brazil, it will go up against the Skoda Kushaq—a strong rival from Volkswagen’s sibling brand within the Volkswagen Group. In India, the competitors include models like the Hyundai Venue, Kia Sonet, Maruti Suzuki Brezza, new Skoda Kylaq, Tata Nexon and even the Mahindra XUV 3XO.