Volkswagen updates Tera SUV with more powerful engines for 2027

Volkswagen has updated its subcompact SUV, the Tera, for the 2027 model year by increasing engine performance in its higher trims. The Comfort and High versions will now feature the 1.0 200 TSI engine, replacing the previous 170 TSI unit. When using ethanol, the new engine delivers 128 cv of power and 20.4 kgfm of torque, accompanied by an eight-speed automatic transmission.

This strategic move contrasts with many competitors, such as Chevrolet, Fiat, and Hyundai, which have been reducing engine power to stay below the 85 kW threshold to minimize taxes under Brazil’s ‘IPI Verde’ regulations. The ‘IPI Verde’ is part of the Mover (Mobility, Green and Innovation) program, which adjusts tax rates based on energy efficiency and power.

The Volkswagen Tera, produced in Taubaté, has seen significant commercial success, surpassing 100,000 units produced. Despite the performance upgrades, the 2027 model line includes various configurations, including the 1.0 MPI manual and the 170 TSI manual, with prices for the updated Comfort and High versions adjusted accordingly.