Discover the 2026 Volkswagen Tera, a subcompact crossover twin to the Skoda Kylaq, launching soon in Brazil and India with a 1.0-liter TSI engine.
2026 Volkswagen Tera Unveiled: Skoda Kylaq’s Twin with Minimal Camo
The Volkswagen Group is gearing up to launch the all-new Tera crossover, a close sibling to the Skoda Kylaq designed for the Indian market. This subcompact crossover shares a similar size and footprint with its Skoda counterpart.
A Compact Crossover for Brazil and India
Positioned below the Volkswagen Nivus, the Tera will target customers in India and South America. Production will start at Volkswagen’s Taubaté plant in Brazil, followed by the Chakan facility near Pune, Maharashtra. Notably, this model won’t be available in Europe or North America.
Sources reveal that the Tera’s dimensions closely mirror the Kylaq’s, with an overall length of approximately 3,995 millimeters (157.3 inches) and a wheelbase matching the Kylaq at about 2,566 millimeters (101.0 inches).
Engine and Performance
The Tera will be powered exclusively by the 1.0-liter TSI engine from Volkswagen's EA211 series, which also includes 1.2-, 1.4-, and 1.5-liter variants. In the Kylaq, the 1.0-liter turbo generates 114 horsepower and 131 pound-feet (178 Newton-meters) of torque, paired with front-wheel drive.
For the Brazilian market, the 1.0-liter TSI engine will be adapted to run on hydrous ethanol (E100) and gasohol (E25), commonly used fuels in the region. However, fuel efficiency will be slightly reduced compared to running on gasoline blends like E10.
Pricing and Launch Timeline
The Volkswagen Tera is expected to carry a price slightly higher than the Skoda Kylaq. Currently, the Kylaq Classic starts at 789,000 Indian rupees (around $9,080), suggesting the Tera may be positioned a bit above this price point.
The Tera’s official debut is anticipated in the coming months, with Indian showrooms expected to stock the new crossover by next year.