Volkswagen has announced the launch of its new compact SUV, the Tera, set to debut in 2025. This model will be approximately 4 meters long and will share design elements with the VW Tiguan.
The Tera will be the brand's smallest and most affordable SUV, with a starting price of under $15,000. It will be built on the MQB-A0 platform, making it a sibling to the Skoda Kylaq.
Under the hood, the Tera will feature a 1.0-liter turbocharged engine producing 116 horsepower, compatible with both gasoline and bioethanol. Buyers can choose between a 5-speed manual or a 6-speed automatic transmission.
Production of the Tera will take place in Brazil, where the name was selected through a public competition held by Volkswagen's Brazilian site.