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VW’s new South African-made budget SUV revealed

VW has revealed the Tera, its smallest crossover to date, after many months of waiting.

The Tera is the automaker’s big bet to reclaim the budget car segment from Chinese and Indian automakers. It’s based on the popular Polo and will slot in below the imported T-Cross in terms of dimensions and price.

The crossover will be built in Brazil and, importantly, South Africa, and will enter production at VW’s Eastern Cape plant in late 2026 or early 2027.

It won’t be called the Tera in the local market, but we can be certain its name will still start with a “T” to fall in line with VW’s other SUVs.

The Tera is anticipated to make its market debut in Latin America before the end of 2025, but it’s likely to only reach South African showrooms after the first units roll off the domestic production line in about two years’ time.

What to expect

VW has kept mum on the finer details of the Tera thus far such as its technical specifications and standard equipment, only taking advantage of the VW Carnival in Rio de Janeiro to unveil the design and key features.

It wears a look akin to that of the German marque’s existing SUVs such as the next-gen Tiguan, with slim LED headlights and two-part daytime running lights connected by a flashy chrome strip on the nose.

Underneath these fixtures is a large grille flanked by sporty-looking air intakes which themselves are also rather sizeable.

The image is mirrored at the rear with LED lamps connected by a coast-to-coast tailgate garnish in black with silver striping, with the rear bumper rising up rather high to reinforce its crossover persona.

The model on display, most likely the top-spec one, rides on 17-inch alloy wheels in a very athletic design.

The overall silhouette of the Tera is more reminiscent of a crossover coupe like the Taigo instead of a traditionally shaped SUV, in keeping with the trend of the times when looking at the recently released and highly sought-after Suzuki Fronx and Haval Jolion Pro.

With its measurements still under wraps, we can speculate that the new VW should have a wheelbase similar to the Polo at 2,552mm.

It’s also expected to be close to the hatchback’s 4,074mm length and 1,751mm width, with its roofline to be somewhere between the Polo’s 1,451mm and the T-Cross’s 1,573mm.

Inside, there’s a raised infotainment screen and a silver dash insert, what appears to be touch-sensitive aircon controls, a fully digital driver’s display, and a leather multifunction steering wheel with silver trimmings.

The door panels are textured and feature silver and piano black finishes while the seats are covered in patterned leather with contrasting needlework.

From the photos provided by VW, we can make out that at least one variant of the Tera will have a wireless device charging pad, ambient lighting, and advanced driver assist features.

VW previously confirmed that the Tera will be shipped with a 1.0-litre petrol (TSI) engine but didn’t reveal which version.

Between the Polo and T-Cross there are two options of the 1.0-litre TSI driveline, one generating 70kW and 175Nm and the other a higher 85kW and 200Nm.

The lesser powerful version is the likeliest of bets when considering the Tera’s positioning in the VW portfolio, but there’s also a chance that the 85kW mill could feature in the pricier models, similar to the Polo.

Expect a five-speed manual transmission in the base entries and a six- or seven-speed auto higher up in the range.

“Competitive prices”

Ciro Possobom, President of VW Brasil, said the Tera will have “competitive prices” when it’s released to market, as quoted by Brazilian publication Motor1.com.

In Latin America, its main competitors are the Fiat Pulse and Nissan Kicks, which retail between R$100,000 (R317,000) and R$140,000 (R443,000).

Its domestic rivals are vehicles such as the Chery Tiggo 4 Pro and Haval Jolion which go for a minimum of R269,900 and R345,950, respectively.

Meanwhile, the Tera’s architectural twin, the Polo hatch, has an asking price of R373,800, while its bigger brother, the T-Cross, sells from just over R400,000.

Considering VW aims to post a “competitive” price point for the Tera, meaning it will probably have Chery and Haval in its sights, we reckon it will target a base price of around R350,000, give or take a few thousand.


VW Tera


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