Volkswagen’s New Tera SUV Is Changing Brazil Forever – Here’s How

Volkswagen has officially introduced the all-new Tera sport utility vehicle, a major move that strengthens its leadership in the utility vehicle and hatchback market in Brazil. Proudly designed, engineered, and manufactured entirely in Brazil, the Tera is more than just a vehicle—it is a symbol of progress, innovation, and job creation for the region.

The Tera is being produced at the Volkswagen do Brasil plant in Taubaté, a facility that is now seeing a transformation to support this exciting new chapter. With the arrival of the Tera, Volkswagen has generated 260 new direct jobs, 40 percent of which are occupied by women, highlighting the brand’s commitment to diversity in the workplace. Beyond that, the vehicle’s impact stretches even further—up to 2,600 new indirect jobs have been created across the supply chain.

With an impressive 80 percent nationalization rate, the Tera includes components from 241 parts suppliers, with over 230 of them being Brazilian companies. Even more impressive, 21 of those suppliers are located in the Vale do Paraíba region, strengthening local economic ties. In 2025 alone, the Tera will drive approximately R$3.23 billion in parts purchases, making up 12 percent of Volkswagen do Brasil’s projected total of R$26.3 billion.

To bring the Tera to life, Volkswagen invested heavily in its production capabilities in Taubaté. The plant now houses 347 new robots, bringing the total to 875. These upgrades are part of a broader initiative to modernize the production line while maintaining sustainability. Volkswagen stands out as a pioneer in using biomethane in its energy mix—especially during the paint process—which reduces carbon dioxide emissions by up to 99 percent.

The Tera is not just a national success story. Starting in the second half of the year, this new model will be exported to more than 20 countries across two continents, reinforcing Volkswagen’s global presence and Brazil’s growing influence in automotive innovation.

This is the fifth model in a larger strategy, with 17 total launches planned for the South American market by 2028, backed by a R$20 billion investment. Volkswagen’s clear mission with the Tera is to make sport utility vehicles more accessible, without sacrificing quality, technology, or design.