After months of teasers and testing, Volkswagen has officially unveiled the highly anticipated Tera SUV. This model is set to be the most affordable SUV in the automaker’s lineup. Designed entirely in Brazil, the Volkswagen Tera was introduced to the public at the Rio de Janeiro Samba School Parade, held at the Marques de Sapucai in Rio de Janeiro. At present, Volkswagen has not disclosed any details regarding the engine and mechanical specifications of the Tera. So far, only the SUV’s exterior and interior design have been showcased.
Volkswagen Tera SUV: Engine and Powertrain
Volkswagen has yet to reveal the official engine and powertrain details for the Tera SUV. However, according to reports, it is expected to be powered by a 1.0-liter TSi three-cylinder petrol engine. This engine is anticipated to produce a peak power output of 116.38 HP and a maximum torque of 178 Nm.

Volkswagen Tera SUV: Exterior and Interior
The Volkswagen Tera SUV takes design cues from the upcoming next-generation Tiguan and the facelifted Taos. As the most compact SUV in Volkswagen’s portfolio, it features a distinctive exterior with a sleek honeycomb grille, a prominent Volkswagen badge, sharp LED headlights, and split LED daytime running lights. The front bumper incorporates two air dams for added styling. The SUV also rides on stylish 10-spoke diamond-cut alloy wheels.
The Volkswagen Tera SUV is expected to arrive in India by early 2026.

Inside, the Volkswagen Tera SUV boasts a minimalist yet modern design. The cabin is equipped with a 10.25-inch freestanding touchscreen infotainment system. Key features include an Advanced Driver Assistance System (ADAS) package, ambient lighting, a smartphone charging system, automatic climate control, and several other advanced technologies.
Volkswagen Tera SUV: Launch and Rivals
As of now, Volkswagen has not officially announced a launch timeline for the Indian market. However, the German automaker has confirmed that the Tera SUV will debut in Brazil by May 2025. Estimates suggest that the model will enter the Indian market by early 2026.
Upon its launch, the Volkswagen Tera SUV will compete against popular models such as the Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, Mahindra XUV 3XO, and Kia Sonet.