2025 Volkswagen Taos First Drive Review: Compact SUV with Big Updates

By HARJA Published: DEC 14, 2024

2025 Volkswagen Taos small SUV has received a major refresh for 2025, one that aims to atone for its prior sins. The main offense? Buyers of SUVs largely want AWD, and the AWD Taos was the worst version owing to its clunky, ill-behaved transmission. Combine that with diminishing value as you climbed the trim ladder, and the little VW slotted in 10th place among subcompact SUVs in our Ultimate Car Rankings.

What’s New With the 2025 Volkswagen Taos?

This year, the Taos gets more power, more style, and more features­ across all trims—but most notably a new transmission for the 4Motion all-wheel-drive version. The prior dual-clutch automatic’s lurching starts and slow shifts were, according to Volkswagen, major pain points for AWD buyers. It’s been replaced by the same eight-speed conventional automatic found in the front-drive model, and the switch fully solves the issues.

The engine is the same, but it now makes 16 more horsepower, for a total of 174. It’s not enough to provide thrills, but it is enough to get up to freeway speed and turn into traffic without causing anyone to soil their pants. The turbocharged engine is smooth enough, as well, really only getting loud near the redline.

You can now more fully appreciate the Taos’ inherent goodness; it’s a refined, pleasant small SUV with good road manners and reasonable handling abilities. The suspension does a nice job, given the short wheelbase, of taking the edge off the worst impacts while keeping things stable in corners. The steering is accurate and slop-free, delivering a confident sense of straight ahead while cruising on the freeway. The brakes are similarly responsive. The front- and all-wheel-drive models still have differing rear suspensions—torsion beam in the former, multilink in the latter—but very few drivers will ever know the difference.

The Taos doesn’t just drive better, it’s a better place to spend time. Every model now has an 8.0-inch infotainment screen, dual-zone automatic climate control is included on all but the base trim, and there are new trim materials throughout. In the fully loaded SEL example we tested, that included a classy strip of suedelike material across the dash. The base model we drove looked great, too, with real stitching on a piece of nice-looking tan vinyl. The seats are comfortable and supportive; upholstery includes durable and attractive cloth on the base S, faux leather in the SE, and leather (including in blue!) in the top-of-the-line SEL.

Plenty of Goodies

Equipment baked into every Taos includes rain-sensing windshield wipers, a heated steering wheel, a digital dashboard (that gains functions and is more customizable in pricier trims), a pair of USB-C ports, projector beam headlamps, 17-inch wheels, and VW’s IQ.Drive driver-assist safety technologies. Opt for AWD on your base Taos, and you also get heated front seats, heated side mirrors, and 18-inch wheels.

As you move up the ladder from the base S, the SE version brings adaptive front lighting that turns in corners, another USB-C port in back, the dual-zone HVAC (including rear air vents), remote start, and front and rear parking sensors, among a pile of other features. Finally, the SEL brings 19-inch wheels, a panoramic sunroof, ventilated front seats, and more. The SEL and SE Black edition also get a front light bar with a lit VW logo to match the new rear end’s full-width lights and illuminated badge.

It all adds up to a meaningful overhaul for the Taos’ fourth year on the market; it’s VW’s fourth most popular model in the U.S., selling almost as many units (60K) per year as the full-size three-row Atlas. The pre-refresh Taos wasn’t in our most recent comparison test of the segment, but it’s hard to imagine the 2025 model wouldn’t fare far better in such a competition that it would have at the time. VW addressed the most pressing concerns, adding tech, style, and more refinement.

Price Problems Persist?

What VW didn’t necessarily address was the Taos’ pricing. The small Volkswagen starts at $26,420, right in the neighborhood of competitors such as the Honda HR-V and Kia Seltos. But the VW lineup stretches into the mid-$30K space, with the SEL cresting $36,000. The Honda tops out at less than $31,000 and the Kia at less than $33,000. In fact, among small SUVs, only the Ford Bronco Sport gets pricier at the top end, and there are plentiful options that don’t even hit $30,000 all-in. Is the Taos worth it? We’ll need more than a few hours with one to dial in a concrete answer, but for now, anyone who winds up shopping for this VW will undoubtedly be getting a notably improved version.

2025 Volkswagen Taos Videos: