Volkswagen Tera revealed: new compact SUV set to be built in South Africa

Volkswagen has fully revealed the exterior and interior of its new Tera compact SUV, which is set to be built in South Africa from 2027 as part of a R4 billion investment.

The Volkswagen Tera made its first public outing at the Rio Carnival on Sunday, but technical information on the new model has yet to be revealed.

It is widely believed that this is the new ‘third model’ that Volkswagen South Africa will build at its plant in Kariega from 2027, but it will reportedly receive a new name for the local market and the company says the product will feature adaptations for the African market.

Formed around Volkswagen’s MQB-AO platform, the Tera is closely related to the Polo hatchback, which it will be built alongside at Kariega.

With the latter being a major export model for the local operation, but one facing an uncertain future as Europe shifts to electric vehicles, the Tera’s introduction will aim to diversify the factory’s production portfolio.

The new compact SUV will be positioned below the T-Cross and although it’s too early to speculate on pricing, it is likely to compete with the likes of Kia’s Sonet, Mahindra’s XUV 3X0 as well as the Suzuki Fronx and Toyota Starlet Cross siblings.

Overseas media outlets report that the Volkswagen Tera will be equipped with the 85kW version of the familiar 1.0-litre, three-cylinder turbopetrol engine, but the locally-produced MPI engines could also feature in the South African range.

The Tera’s exterior follows the modern Volkswagen design idiom, with front and rear ends bearing a family resemblance to the latest Tiguan, however the side profile has a more coupe-like appearance and a pronounced rear fender crease that flows into the compact taillight clusters.

The cabin follows a similar formula as seen in the facelifted T-Cross, with a ‘floating’ infotainment screen positioned above the central air vents and digital instrumentation.

Higher-end versions will boast ambient lighting as well as inductive phone charging, according to Motor1 Brazil.

South African production of the new compact SUV comes as a result of a R4 billion investment in the Eastern Cape factory, as announced in April 2024, and the local operation will also be targeting exports into Africa.

“South Africa is an important market for the Volkswagen Group, particularly in terms of our long-term goal to establish our footprint on the African continent, which is seen as the last frontier for automotive development,” VWSA CEO Martina Biene said at the time.

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