Tera subcompact SUV will first debut in Brazil next year, followed by other markets including Argentina and India
Sensing an opportunity in the sub-4m SUV segment, Volkswagen has started working on the Tera SUV. Based on the same platform as Skoda KylaqTera will be the smallest Volkswagen SUV when launched.
Volkswagen Tera – What’s new?
Latest spy shots reveal Volkswagen Tera being tested in an off-road environment in Argentina. The SUV has a unique design in comparison to the T-Cross and Nivus. Some of the key features include distinctive LED headlights and top-mounted LED DRLs. However, there is no interconnecting LED strip at the front. VW Tera has a prominent bumper section, which appears somewhat similar to that of the Euro-spec Tiguan.
Side profile appears to have derived inspiration from the new Tiguan. To achieve a clutter-free look and feel, the SUV gets flat door panels without any distinctive belt line. Tera has fender cladding and gets 17-inch alloy wheels. At the rear, the SUV has edgy tail lamps, interconnected with a black strip.
Across international markets, Volkswagen Tera will be using the MQB-A0 platform. Other Volkswagen models that have this platform include the Polo, T-Cross, Nivus and Virtus. Tera will have a wheelbase of 2,566 mm, which is the same as Polo. The SUV will be relatively better equipped to handle off-road tracks. Such vehicles are preferred in Latin America due to the challenging terrain.
Volkswagen Tera – Pricing
As there is intense competition in the sub-4m SUV segmentVolkswagen will be looking to launch the Tera SUV at a competitive price point. Skoda has already followed a similar approach by launching Kylaq at a starting price of 7.90 lakh. It makes the base variant of Kylaq the second most affordable sub-4m SUV in India. In India, Volkswagen Tera likely to start at around Rs 8 lakh.
Volkswagen Tera – Powertrain
Both Volkswagen Tera and Skoda Kylaq have the same 1.0-litre TSI petrol engine. It delivers 115 PS and 178 Nm of torque. Transmission choices include 6-speed manual and 6-speed automatic. While a sole engine option may seem like a limitation, it can have some advantages as well.
For example, costs related to design, testing and emission compliance can be reduced with a single engine. Having a single engine also reduces complexities around manufacturing and supply chain. Reaching economies of scale becomes more cost effective with a single engine option.
Volkswagen Tera – Competition check
Across international markets, Volkswagen Tera will take on rivals such as Renault Kardian and Fiat Pulse. In India, Tera will face sub-4m bestsellers such as Maruti Brezza, Tata Nexon, Kia Sonet, Hyundai Venue and Mahindra XUV3XO. Sibling Skoda Kylaq will also be among the rivals.
Volkswagen’s decision to enter the entry-level ICE SUV segment comes at a time when EV sales are slowing across many global markets including Europe. This may be temporary, but the full electrification goals will take longer to achieve. Volkswagen itself is facing challenging times and is working on a revival plan. Volume-oriented products like Tera SUV, launched across multiple international markets, can be a part of the company’s comeback strategy.
