Volkswagen has commenced production of the VW Tera compact SUV at its Taubaté plant in São Paulo, Brazil. This marks a significant step in VW's strategy to expand its SUV offerings in the region and beyond.
The Taubaté plant has received investment as part of VW's R$ 16 billion investment in Brazil through 2028.
The production of the Tera is expected to generate 260 direct jobs and an estimated 2,600 indirect jobs.
The Tera is slated for export to over 25 Latin American and African countries.
The vehicle is built on the MQB-A0 platform and will be powered by a turbocharged 1.0-liter three-cylinder engine.
The VW Tera is designed and developed in Brazil and will be available in the first half of 2025, followed by other Latin American markets including Argentina, Chile, Colombia, Uruguay, and Mexico in the second half of the year.