The smallest and most affordable Volkswagen crossover, priced at $10,000, has been spotted on the roads for the first time (photos included).

A new Volkswagen Tera has been spotted in Sweden. This budget-friendly compact crossover is undergoing final tests and will debut in March in Brazil. This is reported by Autoevolution.

The test prototypes of the Volkswagen Tera are not covered with camouflage, allowing a clear view of its design. It features elongated headlights, bulging fenders, and a wide air intake in the bumper. The rear window, which is tilted at a significant angle, is topped with a spoiler.

The Volkswagen Tera crossover measures approximately 4 meters in length with a wheelbase of 2566 mm. It is built on the MQB-A0 platform, which is also used by the budget-friendly Skoda Kylaq crossover.

The interior of the crossover has not been revealed in the photos, but it is known that the new Volkswagen Tera will be equipped with a 1.0-liter turbocharged gasoline engine producing 116 hp, which can also run on ethanol. It will be available with a 5-speed manual and a 6-speed automatic transmission.

Production of the Volkswagen Tera will be established in Brazil. The starting price of the crossover will be approximately $10,000.

Additionally, the cheapest electric vehicle from Volkswagen has recently been unveiled, priced at €20,000.