The Tera subcompact SUV will debut in Brazil next year, followed by other markets such as Argentina and India
Volkswagen realized the opportunities in the sub-4 million SUV market and began to develop the Tera SUV. The Tera is based on the same platform as the Skoda Kylaq and will be the smallest Volkswagen SUV when it goes on sale.
Volkswagen Tera – What’s new?
The latest spy photos show the Volkswagen Tera being tested in an off-road environment in Argentina. This SUV has a unique design compared to the T-Cross and Nivus. Some key features include unique LED headlights and top-mounted LED daytime running lights. However, there is no interconnected LED strip on the front. The Volkswagen Tera has a prominent bumper section that looks somewhat similar to the European-spec Tiguan.
The side profile seems to be inspired by the new Tiguan. To achieve a clean look and feel, the SUV features flat door panels without any distinctive beltline. The Tera gets fender flares and 17-inch alloy wheels. At the rear, the SUV has edgy taillights connected to each other by a black strip.
In the international market, the Volkswagen Tera will use the MQB-A0 platform. Other Volkswagen models with this platform include the Polo, T-Cross, Nivus and Virtus. The Tera’s wheelbase is 2,566 mm, the same as the Polo’s. The SUV performs relatively well off-road. Such vehicles are favored in Latin America due to the challenging terrain.
Volkswagen Tera – Pricing
As competition in the sub-4 meter SUV market is fierce, Volkswagen will seek to launch the Tera SUV at a competitive price. Skoda has taken a similar approach and launched the Kylaq with a starting price of Rs 7.90 lakh. It makes the base model of Kylaq the second most affordable sub-4 meter SUV in India. In India, the Volkswagen Tera price is likely to start around Rs 8 lakh.
Volkswagen Tera – Powertrain
Both the Volkswagen Tera and the Skoda Kylaq are powered by the same 1.0-litre TSI petrol engine. It delivers 115 PS and 178 Nm of torque. Transmission options include a 6-speed manual and a 6-speed automatic. While the single engine option may seem like a limitation, it also has some advantages.
For example, using a single engine can reduce costs associated with design, testing and emissions compliance. Having a single engine also reduces manufacturing and supply chain complexity. With a single engine option, achieving economies of scale becomes more cost-effective.
Volkswagen Tera – Competition Check
In international markets, the Volkswagen Tera will compete with rivals such as the Renault Kardian and Fiat Pulse. In India, Tera will face top-selling products under 4 million such as Maruti Brezza, Tata Nexon, Kia Sonet, Hyundai Venue and Mahindra XUV3XO. Sibling model Skoda Kylaq will also become a competitor.
Volkswagen’s decision to enter the entry-level ICE SUV market comes as EV sales are slowing in many global markets, including Europe. This may be temporary, but full electrification goals will take longer to achieve. Volkswagen itself faces challenging times and is working on a recovery plan. Volume-oriented products like the Tera SUV, launched in several international markets, could form part of the company’s comeback strategy.
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