Volkswagen has officially unveiled the name of its upcoming sub-4-meter SUV, which will be based on the Skoda Kylaq platform. The new compact SUV, named the Volkswagen Tera, is set to launch in Brazil in 2025 before making its way to India. Designed to compete in the rapidly growing sub-4-meter SUV segment, the Tera will join Volkswagen’s portfolio as a stylish, compact option that combines modern design with premium features.
The Volkswagen Tera will be powered by a 1.0-liter turbo petrol engine, similar to that of the Skoda Kylaq. This engine delivers 115 horsepower and 178 Nm torque, making it suitable for both city driving and highway journeys. Like the Kylaq, the engine will be mated to a 6-speed manual or a 6-speed automatic torque converter. The Tera will likely offer premium features such as advanced connectivity options, safety technology, and a spacious interior.
The Tera features a modern exterior design with bold lines and a robust stance, giving it a commanding presence on the road. Inside, the SUV offers a luxurious cabin with high-tech amenities such as a large infotainment system, wireless charging, and multiple connectivity options. The 7-seater configuration ensures ample space for passengers, making it ideal for families.
The Volkswagen Tera is equipped with a comprehensive suite of safety features, including multiple airbags, ABS with EBD, electronic stability control (ESC), traction control, hill descent control, and advanced driver assistance systems (ADAS) such as lane departure warning, blind-spot detection, and autonomous emergency braking. The SUV also features rear cross-traffic alert, adaptive cruise control, and parking assist with a 360-degree camera, providing drivers with enhanced visibility and control.
Volkswagen’s decision to enter the sub-4-meter SUV segment was influenced by shifting market dynamics, including a slowdown in EV sales and continued growth in the compact SUV space. The company’s India 2.5 project, a INR 2,276 crore initiative aimed at increasing plant utilization and achieving economies of scale, supports this move. Despite entering a crowded segment late, the sub-4-meter SUV category remains one of the fastest-growing markets.
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