Volkswagen’s new SA-built affordable SUV spied with minimal disguise - meet the Tera!

An earlier teaser image of the upcoming Volkswagen Tera. Picture: Supplied

An earlier teaser image of the upcoming Volkswagen Tera. Picture: Supplied

Published Feb 18, 2025

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Spy photographers have snapped the most revealing images yet of the Volkswagen Tera, which is a new entry-level SUV for emerging markets.

It is believed that this is the “SUV-type” vehicle that Volkswagen plans to build in South Africa, following a R4 billion investment that was announced in 2024.

VWSA Chief Executive Martina Biene said at the time that the vehicle was being developed by the company’s Brazilian arm, but that some adaptations would be made for African markets.

The spy shots reveal the new SUV with minimal camouflage, showing a compact but coupe-like silhouette and full-length taillamp clusters.

Judging by earlier teaser images, the vehicle has a slim front grille closely resembling the latest Tiguan, meaning the larger ‘lip’ on the prototype is surely a ruse.

All should be revealed in the coming months however.

Volkswagen Tera teaser image. Picture: Supplied

According to international media reports, the Volkswagen Tera will go into production in Brazil later in 2025 and then in India from 2026.

The fact that it's based on the MQB-A0 platform that underpins the current Polo, should allow for easy integration on VWSA’s Kariega assembly line, where Polos are currently built for the local market and export destinations around the world.

Reports indicate that the Tera will be powered by the company’s familiar 1.0-litre turbopetrol engine, which produces 85kW. Unless Kariega invests in building this engine in SA, don’t be surprised if the lower-rung models also make use of the current normally aspirated MPI engines as these are built locally and thus supportive of job creation.

Rear view of the new Tera. Picture: Supplied

Although it is very much an opportunity for VWSA to expand its reach in the compact SUV model - given that it will be priced below the T-Cross - the new compact SUV is also an attempt to safeguard the future of the Kariega plant in the Eastern Cape.

The facility currently assembles the Polo hatchback for European and Asian markets, but with this vehicle likely to be discontinued globally around the end of this decade, the local operation is facing a potential crisis in the longer term. 

With over 131,000 Polos exported in 2024, VWSA will need to secure a significant export contract in order to keep the plant running at today’s capacity.

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