Autocar India

Last Updated on: 04 Sep 2026

Volkswagen Tera

Volkswagen Tera Launch Date
Mid 2027
₹9.01 - ₹15.40 Lakh
Expected on road price, Jind
Jind

Volkswagen has secured global approval for a new sub-four-metre SUV for India, based on the Skoda Kylaq. We are referring to the model as the Volkswagen Tera for now, although Volkswagen has not yet confirmed its final name. It will mark the brand’s return to the sub-four-metre segment after the discontinuation of the Ameo and Polo.

The Tera will be positioned below the Taigun and will get distinct Volkswagen styling inside and out, despite sharing its underpinnings with the Kylaq. It will use the Kylaq’s 1.0-litre TSI petrol engine, paired with a manual or an eight-speed automatic gearbox.

 

Highlights

  • Sub-four-metre SUV: Volkswagen’s new entry point into the compact SUV segment
  • Kylaq based: Shares its platform and powertrain with the Skoda Kylaq
  • Distinct styling: Expected to get significantly different exterior and interior design
  • 1.0-litre TSI: Will use the Kylaq’s turbo-petrol engine
  • 8-speed automatic: Gets a new eight-speed automatic at launch
  • Below Taigun: Will become Volkswagen’s smallest SUV in India
  • Big segment: Enters a market that accounts for around 30 percent of India’s passenger vehicle sales
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Volkswagen Tera Latest Updates

  • August 21, 2026: Volkswagen compact SUV officially confirmed for India; this comes comes just over a week after we exclusively reported that the carmaker had secured global approval for the project.
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Volkswagen Tera Features and specifications

Our Rating
Yet to be Reviewed
Mileage
19.05 kmpl - 19.68 kmpl
Engine
999 cc
Fuel Type
Petrol
Transmission
Torque Converter, Manual
Body Style
SUV
Doors
5
Max Power
85 hp at 5000 - 5500 rpm
Max Torque
178 Nm at 1850 - 4000 rpm
View all Tera Specifications

Volkswagen Tera price & variants

The Volkswagen Tera is expected to be offered in multiple variants, with the final line-up and equipment levels yet to be confirmed. The Tera will be offered with manual and eight-speed automatic gearbox options.

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Tera TSI2 Variants
₹9.01 - ₹15.40 LakhOn road price, Jind

Volkswagen Tera Mileage

The Volkswagen Tera will use the Skoda Kylaq’s 1.0-litre TSI petrol engine, but its official mileage figures are yet to be announced. It will be offered with both manual and eight-speed automatic gearbox options.

Since it shares its mechanicals with the Kylaq, its efficiency is expected to be similar. The Skoda Kylaq is rated at 19.68kpl (manual) and 19.05kpl (automatic, ARAI), giving a general idea of what the Tera may deliver once launched.

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PowertrainThe combination of engine type, fuel, and transmission that powers your vehicle and determines how it drives and what it runs on.ARAI MileageMileage certified by the government, tested under controlled lab conditions. Real-world mileage will vary.
Petrol-Manual
999 cc
19.68 kmpl
Petrol-Automatic (Torque Converter)
999 cc
19.05 kmpl

Volkswagen Tera Images

View the latest Volkswagen Tera rendered images, including front and rear design previews. Since the SUV has not been officially revealed yet, these visuals are based on expected design interpretations. The model is anticipated to share its underpinnings with the Skoda Kylaq but will feature significant styling changes to establish a distinct Volkswagen identity. The production version is yet to be unveiled.

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Front Left Three Quarter Image - 38298
Front Left Three Quarter

Volkswagen Tera FAQs

The Volkswagen Tera is the name we are currently using for Volkswagen’s upcoming sub-four-metre SUV for India. Volkswagen has not yet confirmed the production model’s official name.

The Volkswagen Tera is expected to be priced between Rs 8 lakh and Rs 13 lakh, ex-showroom.

The Volkswagen Tera will use a 1.0-litre TSI turbo-petrol engine.

The Tera will be offered with a manual gearbox and an eight-speed automatic transmission.

The Tera’s official mileage figures have not yet been confirmed. As a reference, the same engine in the Skoda Kylaq returned 10.6kpl in the city and 15.12kpl on the highway with the manual gearbox, and 8.7kpl and 13.36kpl respectively with the automatic in our real-world testing.

A GT Line is expected, following Volkswagen’s variant strategy with the Taigun. However, the final variant line-up has not yet been confirmed.

The Tera will compete with the Tata Punch, Tata Nexon, Maruti Suzuki Fronx, Maruti Suzuki Brezza and other sub-four-metre SUVs.

The Volkswagen Tera is expected to launch in India in mid-2027.

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Volkswagen Tera On Road Price in India

CitiesOn road price
₹9.41 - ₹16.75 Lakh
₹9.01 - ₹15.40 Lakh
₹9.49 - ₹16.61 Lakh
₹9.17 - ₹15.67 Lakh
₹9.25 - ₹15.94 Lakh

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