Volkswagen Built Another SUV

The Brazilian Tera is even smaller than the US Taos.

Volkswagen Tera live at the Sambódromo

Photo by: Motor1 Brasil

Adrian Padeanu

By: Adrian Padeanu

Mar 3, 2025 at 7:06am ET

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Toyota has been holding on to the global car sales crown since it overtook Volkswagen in 2020. How are the Germans fighting back? By betting on SUVs to save the day once again. While we thought there wasn't room left for yet another high-riding model, VW is proving us all wrong. The Tera is an entry-level offering primarily intended for Brazil and Argentina, where the battle for subcompact crossovers is heating up.

You're not alone if you think it looks like a shrunken Tiguan. VW's typical conservative styling has been applied here but in a downsized form. The design team tried to spice things up by putting an Easter Egg below the rear wiper, where the Beetle, Gol, and Tera silhouettes are integrated into the glass. Higher-end trims get two-tone wheels and a contrasting black roof, but there are no light bars like on bigger models sold globally.

Photo by: Motor1 Brasil

Although technical specifications have not been disclosed, we know that Wolfsburg's newest crossover is smaller than the Taos sold in the United States. It's expected to be positioned underneath the T-Cross and Taigo/Nivus in size and pricing. Those two models are also sold in Brazil, but VW isn't concerned about a potential overlap between them that would cannibalize sales. The Tera is approximately 157.0 inches long.

Like the exterior, the cabin also plays it safe with the design. We are pleasantly surprised to see separate controls for the climate settings instead of relying on the central screen. However, the touch panel for the HVAC reminds us of the Arteon facelift before the posh Passat alternative went out of production a couple of months ago. We're happy to see normal buttons on the Tera's steering wheel and a proper handbrake lever. The VW Group has been using that switch to control the lights for decades, not that we're complaining.

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Power will be provided by the usual suspect—a turbocharged 1.0-liter three-cylinder engine linked to an automatic transmission. A manual gearbox is likely reserved for the cheaper versions of the Tera. VW's small crossover is based on a low-cost version of the MQB A0 platform and will be available strictly with front-wheel drive.

When it goes on sale later this year, the VW Tera, made in Brazil, will compete with other cheap subcompact crossovers, such as the Fiat Pulse, Citroën Basalt, and Renault Kardian.