The Kylaq is Skoda’s first sub-compact SUV that has been built for the Indian market to take on rivals such as the Tata Nexon, Maruti Suzuki Brezza, and Kia Sonet. It is underpinned by the Indian-spec MQB-A0-IN platform and gets VW’s 1.0-litre TSI engine paired to either a 6-speed MT or a 6-speed torque convertor.
The Tera is Volkswagen’s upcoming SUV in Brazil that is said to be closely linked to the Kylaq in terms of platform, powertrain, and other mechanical components. The Volkswagen Tera was showcased in Brazil a few months ago and will be launched in the country in 2025, as per Brazil’s automotive media.
VW India had earlier communicated that they’ll not be launching a sub-compact SUV in order to stay away from further overlapping of products with Skoda and not impeding their brand positioning. A top executive also said that Volkswagen had burned their fingers with the Ameo and Polo Cross and wanted to stay away from the segment and rather focus on presenting themselves as a premium brand.
Latest media reports suggest that Volkswagen might have changed their plans and are actively considering bringing a Kylaq-derivative to India, which is likely to be the VW Tera that is going to be launched in Brazil. The same isn’t likely to be here before 2026 though.
Both the cars are said to have similar underpinnings and also share the 1.0-litre TSI motor. Notable differentiators between both the cars will be their styling, both on the interior as well as the exterior. The VW Group has been benefiting from reduced development costs due to component-sharing like in the case of the Slavia-Virtus and Kushaq-Taigun cars. A similar approach seems to be followed here.
The upcoming Volkswagen Tera in Brazil might be a bit longer than the Skoda Kylaq that has been launched in India, due to the absence of any special sub-4 metre taxation laws in the former country. If launched in India, the Tera would be shortened to fall under 4 metres, just like the Kylaq.