Autocar India

What the Volkswagen Tera previews for new India-bound compact SUV

Volkswagen's upcoming compact SUV could borrow much from the Tera.
3 min read14 Aug '26
Glenn NoronhaGlenn Noronha
14 views
Volkswagen Tera and Volkswagen compact SUV

Volkswagen India has finally begun working on a new compact SUV, which will be a badge-engineered version of the Skoda Kylaq. This will mark its return to the sub-4m category four years after the Polo hatchback’s discontinuation in 2022. At the same time, the upcoming compact SUV is also expected to be the most affordable car in its portfolio in India when it arrives in 2027.

On the other hand, the carmaker already sells an entry-level SUV in the Brazilian market, called the Tera. It is closely related to the Skoda Kylaq and possibly hints at elements that are expected to arrive on VW’s upcoming compact SUV for India. 

Volkswagen compact SUV: Expected dimensions 

The Tera is 4,151mm long, 1,773mm wide, 1,504mm tall, and gets a 2,566mm long wheelbase. Interestingly, the Terra’s wheelbase is identical to that of the Skoda Kylaq. The India-bound VW compact SUV is expected to have the same wheelbase as the Kylaq, but compared to the Tera, it will be shorter in length to fit India's sub-4m tax slab.

Volkswagen compact SUV: Expected platform and powertrain 

What the Volkswagen Tera previews for new India-bound compact SUVSkoda Kylaq 1.0-litre turbo-petrol engine used for representation.

The Volkswagen Tera sits on the brand’s MQB A0 architecture, while the VW Skoda 2.0 cars (Kushaq, Kylaq, Slavia, Virtus, Taigun) utilise the MQB A0 IN platform. The latter is a close variation of the former and will underpin VW’s upcoming compact SUV. 

On the powertrain front, the compact SUV will utilise the same 1.0-litre direct-injection turbo-petrol engine as the Tera, which develops 116hp and 165Nm of torque. But power figures are likely to be closer to the Kylaq's 1.0-litre turbo-petrol, which produces 115hp and 178Nm of torque. In the case of the VW compact SUV, a manual gearbox would be offered as standard, but automatic versions would swap out the 6-speed AT for the new 8-speed that does duty in the Taigun.

Volkswagen compact SUV: Expected exterior design 

What the Volkswagen Tera previews for new India-bound compact SUV

Styling-wise, the upcoming Volkswagen compact SUV is expected to adopt the Tera's design but is likely to come with some India-specific changes. This could include slim LED headlamps connected by a thin DRL strip, a connected LED tail-lamp setup, cladding for the bumpers and door sills, and roof rails. Volkswagen could also bring illuminated logos, as seen on the Taigun and Tayron R Line. Alloy wheels are expected to have a dual-tone look. Potentially, the brand could spruce things up with GT versions with badges and cosmetic upgrades over standard versions. 

Volkswagen compact SUV: Expected interior design and features

What the Volkswagen Tera previews for new India-bound compact SUVLHD VW Tera interior used for representation.

The Volkswagen Tera already has a lot of commonality with the India 2.0 cars, and some of these parts will likely be carried over to the upcoming compact SUV as well. This could include the flat-bottom three-spoke steering wheel, gear knob, centre console and HVAC control unit, the designs of which look similar to those on the Taigun. Additionally, it could also get a similar 10.25-inch digital driver’s display that's seen on the Taigun. The Tera, however, is an LHD model, which will be reversed for the India-spec version. 

As for equipment, the Volkswagen compact SUV could likely mirror the Skoda Kylaq’s feature set. For reference, the latter gets a 10-inch infotainment system with wireless CarPlay and Android Auto, ambient lighting, a digital driver’s display, a single-pane sunroof, powered and ventilated front seats, automatic climate control and a wireless phone charger. 

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