Orders are now open for Volkswagen’s latest compact SUV, the Tera. The model made its debut in Brazil, where it is also being manufactured. Following its initial launch, the Volkswagen Tera 2025 is expected to expand into additional international markets.
Volkswagen Tera
Volkswagen publicly unveiled its budget-friendly crossover, the Tera, in early March during the Rio de Janeiro Carnival. Production began later that month at the company’s Brazilian plant. Now, full specifications have been released, pricing has been announced, and orders are officially open in Brazil.
While the Volkswagen Tera 2025 debuted as a Brazil-first model, Volkswagen has confirmed that it won’t remain exclusive to the local market. The compact SUV is set to launch in “20 countries across two continents,” although the full list of international markets has yet to be disclosed.
Built on the MQB-A0 platform, the Volkswagen Tera 2025 shares its underpinnings with the Nivus, T-Cross, and Polo hatchback. The Tera measures 4,151 mm in length, 1,777 mm in width, and 1,504 mm in height, making it slightly larger than the Brazilian-spec Polo. It also shares the same 2,566 mm wheelbase as the local hatchback. The Tera offers a practical cargo capacity of 350 liters, enhancing its appeal as a versatile compact SUV.
The Volkswagen Tera 2025 stands out with its bold, rugged design, featuring aggressive bumpers, sculpted side panels, and an unpainted plastic body kit that wraps around the vehicle’s perimeter—enhancing its crossover appeal. While fog lights are not included, even the base version comes equipped with LED headlights and taillights. A playful design detail can be found on the rear window: subtle silhouettes of the VW Beetle.
The interior of the VW Tera follows the familiar design language seen in other Volkswagen models, but it also introduces a unique element: a tablet-style multimedia screen that appears to be “glued” onto the dashboard, rather than integrated into it. Looking ahead, In higher trim levels, the Tera will offer Otto—a self-learning virtual assistant.. Otto can deliver real-time vehicle status updates, search for information online, and respond to various user requests. Essentially, it’s a Brazilian-developed smart assistant akin to ChatGPT, tailored for the automotive environment.
Volkswagen Tera Powertrain
The entry-level VW Tera is powered by a naturally aspirated 1.0-liter three-cylinder MPI engine, while higher trims are equipped with a turbocharged 1.0-liter TSI engine. In line with Brazilian fuel preferences, both engines are flex-fuel capable, running on either gasoline or ethanol. The MPI unit delivers 77 hp on ethanol and 84 hp on gasoline, while the TSI offers 109 hp and 116 hp, respectively. Transmission options include a five-speed manual for both engines, with the turbocharged variant also offering a traditional six-speed automatic. The Tera is offered exclusively with front-wheel drive across all versions.
Volkswagen has announced special introductory pricing for the Tera crossover in Brazil. The first 999 customers can purchase the base model, equipped with the naturally aspirated 1.0 MPI engine, for R$99,990. Once this initial batch is sold, the starting price will rise to R$103,990. Versions fitted with the turbocharged 1.0 TSI engine will range from R$116,990 to R$139,990, depending on the configuration. At the top of the lineup is the VW Tera “Outfit The Town” Edition, starting at R$142,290. Official showroom sales are scheduled to begin on June 5.
sudharsan has over a decade of experience covering the breaking news in the auto industry and over ten years of experience writing about cars for magazines, automotive websites, and YouTube videos.
Thank you for following
