Published : 21 August 2026
Read Time : 5 min
Author: Siddharth
Volkswagen have confirmed they will launch a new sub-4m SUV in 2027. The upcoming SUV will use the MQB-A0-IN platform and will be manufactured locally. Volkswagen have not revealed its name yet, but the announcement strengthens the case for the India-spec SUV being based on the Tera.

Volkswagen have officially confirmed their entry into the sub-4m SUV segment in India. The new SUV is scheduled to go on sale in 2027 and will be locally manufactured.
The SUV will use the MQB-A0-IN platform, which also underpins the Skoda Kylaq, Kushaq and Slavia as well as the Volkswagen Taigun and Virtus. Volkswagen say the new SUV is being developed specifically for India with a high level of localisation. The carmaker also says it will become their most accessible SUV when it goes on sale.
However, Volkswagen have not revealed the SUV's name, design, engine specifications, features or exact launch date yet.
While Volkswagen have not confirmed the Tera name, the latest announcement closely matches what we had previously expected.

In our Volkswagen Tera India launch analysis, we highlighted the Tera's dimensions as one of the strongest indicators of its suitability for India. The Brazil-spec Tera measures 4151mm long but has a 2566mm wheelbase. That wheelbase is identical to the Skoda Kylaq's.
We had therefore expected Volkswagen to retain the Tera's basic structure and shorten elements such as the bumpers and cladding to bring the India-spec SUV below 4m.
Volkswagen's confirmation that its new sub-4m SUV will use the India-specific MQB-A0-IN platform now adds another piece to that puzzle. However, until Volkswagen reveal the SUV, we cannot confirm whether it will retain the Tera's design or even use the Tera name.
Volkswagen have not announced the engine or transmission options yet.

We expect the SUV to use the same 1.0L turbo petrol engine as the Skoda Kylaq, Volkswagen Taigun and Virtus. In the Kylaq, this engine produces 116PS and 178Nm.
If Volkswagen carry over the same powertrain combination, the new SUV could offer a 6-speed manual and a 6-speed torque converter automatic transmission.
We expect Volkswagen to position the new SUV close to the Skoda Kylaq.
In our Volkswagen Tera expected price analysis, we estimated a price range of around Rs. 8.0 lakh - Rs. 13.50 lakh (ex-showroom).
That estimate was based primarily on the Kylaq's pricing, the tax advantage available to sub-4m petrol SUVs and some allowance for inflation by 2027.
Volkswagen's confirmation of the MQB-A0-IN platform, local production and high localisation continues to support that expected positioning.
When it goes on sale, Volkswagen's new SUV will compete with the Skoda Kylaq, Hyundai Venue, Kia Sonet, Tata Nexon and Mahindra XUV 3XO, among others.
*The Sonet's 1.0L turbo petrol engine is available with an ACMT instead of a conventional manual transmission.
The new Volkswagen Tera Sub-4m SUV will sit below the Taigun in Volkswagen's SUV lineup and give the carmaker an entry into the highly competitive B2-SUV segment. Volkswagen say they will reveal more information as the SUV's 2027 market introduction approaches.
Also Read: 2026 Skoda Kylaq Sportline Launched At Rs. 11.32 Lakh
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Associate Editor
Siddharth enjoys understanding why certain cars click with buyers and figuring out what makes people actually stop and read or watch automotive content. He also has a soft spot for cars that may not always make logical sense, but still leave a lasting impression. Travelling, photography and exploring new cuisines are among his other passions.

























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