Volkswagen is set to build a new compact SUV in South Africa from 2027, and now we’re getting a clearer picture of how it might look.

The carmaker confirmed in April this year that it was investing R4 billion to produce this “third model” alongside the Polo and Polo Vivo at its Kariega manufacturing facility in the Eastern Cape.

Volkswagen SA Chief Executive Martina Biene said the new model would be based on the Polo’s MQB AO platform and that it was being developed in conjunction with VW of Brazil, but that some adaptations would be made for Africa.

But hold all those thoughts for a moment, because VW’s Skoda brand has just revealed a new sub-four-metre SUV in India called the Kylaq and international media are reporting that it is closely related to the new compact SUV that Volkswagen will launch in Brazil in 2025.

The Terra will be based on the new Skoda Kylaq, but will have unique front and rear styling. Picture: Supplied

The two models are likely to share their basic bodyshell, and possibly many interior components too, but front and rear styling will be unique.

This ties in with the Volkswagen Brazil teaser images that have been released thus far, showing design cues influenced by the Tiguan.

The Volkswagen Tera has styling influenced by the Tiguan. Picture: Supplied

For what it’s worth the Skoda Kyalq is powered by a 1.0-litre TSI turbopetrol engine that produces 85kW and 178Nm of torque, and it can be paired with either a six-speed manual or automatic transmission.

Despite its compact dimensions, the Kylaq boasts a luggage capacity of 446 litres, while the cockpit area has a 10.1-inch infotainment screen and 8.0-inch digital instrument cluster.

A close-up of the Tera’s grille. Picture: Supplied

Meanwhile, hopping across the Atlantic to Brazil, the South American division has confirmed that its new compact Volkswagen will be called the Tera, following a public vote on social media. It’s likely that the South African version will also use this name.

Volkswagen of Brazil is set to reveal the new SUV during 2025, and has already released numerous teaser images of it.

When the new SUV arrives in South Africa in 2027 it will help VWSA to reduce its reliance on Polo exports, which are likely to dry up towards the end of the decade as the hatchback looks set to be discontinued globally.

Interestingly, CEO Biene said at the launch of the facelifted Polo Vivo in August that the current Polo was unlikely to become the new Polo Vivo as it would compete too closely in price with the new SUV product. That suggests the latter could boast aggressive pricing and that it could be in the running to become the brand’s best seller on local shores.

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