2025 Volkswagen Taos First Drive Review: Elevated On a Budget

Americans love cars. Correction: Americans love SUVs, trucks, and anything else that remotely resembles brawn. Actual cars? Pfft. Volkswagen has taken this flummoxing yet unwavering U.S. sensibility to heart by developing new vehicles specifically catering to our market. 

First came the three-row Atlas in 2016 (at the expense of the Touareg), followed by the slopier-roofed Atlas Cross Sport in 2019. Although a subcompact, the Taos‘ arrival in 2021 completed VW’s head-to-tails lineup of crossover SUVs, and subsequently solidified the brand’s North American positioning. And it’s working because overall sales are up, with 76% of year-to-date units sold being SUVs. 

For its part, the small Taos has been a big hit. Taos is Volkswagen’s top-selling SUV in Canada and Mexico and was its third best-selling nameplate in the U.S. last year. As such, its popularity warranted a model refresh in half the time it took the other VW SUVs to get one. The 2025 VW Taos receives a hefty update in every department, except price. 

The Basics

This may just be a mid-cycle refresh, but quite a lot about the 2025 Taos is new. The exterior design is more upscale thanks to a sleek LED light bars front and rear. The front fascia, fog lights, and grille have been tamed into an organized box. Less frantic in style, the updated Taos is all business in the front and in the back. Its side profile was untouched, though, carrying over a prominently sharp character line.

The revamped interior features leatherette on the door panels instead of the previous version’s hard plastic. Also newly standard is an 8.0-inch infotainment display which replaces the previous 6.5-inch touchscreen and takes the Taos’ system back to about par for the segment. Although larger than the 7.0-incher in the Nissan Kicks, the Taos’ screen is still fairly small compared to the 11.0- and 12.3-inch touchscreens available in the Chevrolet Trax and Hyundai Kona, respectively.

The dash vents have been redesigned with a similar vibe to the headlights. Not sure if that was intentional, but the vertical style adds a bit of personality. But it will also remind you that the old Taos’ simple climate control knobs are gone. In their place is a touch-sensitive “Climatronic” panel. The new setup may look cleaner and fancier, but knobs are intuitive and don’t require me to look down while adjusting settings.

In terms of interior space, it feels roomier than, say, the fun but cramped Mazda CX-30.

Driving Experience

The 2025 VW Taos is powered by an updated 1.5-liter turbocharged four-cylinder. Horsepower is up by 16 to 174 total, while torque is unchanged at 184 lb-ft. An eight-speed automatic transmission is used for both front- and all-wheel-drive models, the latter dropping the seven-speed DSG dual-clutch in favor of an eight-speed auto.

The EPA-estimated fuel economy for the FWD Taos stays the same as last year at 28 mpg city, 36 mpg highway, and 31 mpg combined. However, the AWD Taos 4Motion model driven for this review sees a one mpg all-around improvement with 25 mpg city, 33 mpg highway, and 28 mpg combined likely thanks to that new transmission.

My test drive took place in and around San Antonio, Texas. Although my in-car time was relatively short, I knew better than to mess with Texas’ steady supply of full-size pickups and SUVs. The refreshed Taos does have more power, but 16 hp isn’t enough to make the subcompact VW feel bigger than the entry-level commuter crossover that it is.

You’re not going to win any drag races or even every passing attempt. Acceleration will get you to speed but not quickly. On busy on-ramps or merging lanes, I found myself often erring on the side of yield, even if I had the right of way. Even in Sport mode, the car simply holds gears longer, you’re not unlocking some hidden performance boost. However, the eight-speed transmission on its own is fine, offering smoother shifts than the seven-speed dual-clutch.

On the plus side, the engine note is pleasant. There’s no annoying high-pitch whine like you hear on other small turbos. The steering is on point, even if the steering feel itself is a bit disconnected. But overall ride quality was comfortable, and the Taos is more than capable of some cornering. At least with the AWD model I drove, which is equipped with a multi-link rear layout. I did not get seat time in the FWD for comparison, though, which gets a torsion beam in the rear. Nevertheless, body control was good, and the brakes were surprisingly sharp.

Although the Taos’ driving manners are excellent, its cabin isn’t the quietest. When traveling on patchy pavement or aggregate-heavy asphalt, road noise could be a bit harsh. I also noticed the occasional wind noise but, to be fair, none of this was bad enough to scream, “Do not buy.”

VW Taos Features, Options, and Competition

Available in four trims (S, SE, SE Black, and SEL), the 2025 Taos starts at $26,420 (including $1,425 destination). S, SE, and SE Black models can be equipped with 4Motion all-wheel drive for an extra $1,700. The top-of-the-line Taos SEL is AWD-only for $34,695. Although the AWD add-on is consistently priced this year, because that wasn’t the case previously, some 2025 Taos models are actually cheaper than they were in 2024.

The base model S enjoys a few new-for-2025 standard features like the updated engine, larger infotainment display, 17-inch wheels for FWD models, and LED headlights for just a $1,000 price increase from last year, for example. Opt for the S AWD, however, and the overall price delta is just $360. But the bread-and-butter SE starts at $29,320, a $270 savings. 

For 2025, the volume leader SE trim adds a new 18-inch wheel design, adaptive front lighting, dual-zone Climatronic climate control, and park distance control. Other upgrades over the S include leatherette upholstery (instead of cloth), heated front seats, an eight-way power-adjustable driver seat, additional USB-C ports, wireless charging, and wireless smartphone connectivity. SE options include a panoramic sunroof ($1,800) and black 18-inch wheels ($395).

The SE Black also starts with some savings. Its $31,570 price is $550 less than it was in 2024. This trim, as its name suggests, changes up numerous exterior bits to black or gunmetal, including the wheels, roof, spoiler, and badging and also bundles in the sunroof. The fully loaded SEL, meanwhile, sees the highest price hike. Priced $1,180 more than in 2024, this top, $36,120 Taos will get you leather seats with heat and ventilation, the pano sunroof, ambient lighting, a 10.25-inch digital cockpit (an 8.0-inch instrument screen is standard), navigation, and new-design 19-inch wheels.

VW’s IQ.Drive tech is standard across the board and includes blind spot monitoring, adaptive cruise control with stop-and-go, auto high beams, lane keep assist, forward collision warning, auto emergency braking with pedestrian monitoring, rear traffic alert, and other advanced driver-assistance features.

According to VW, its direct competitors are the Honda HR-V, Mazda CX-30, Subaru Crosstrek, and Toyota Corolla Cross. And compared to just those four, some things the Taos can tout are its pano sunroof, ventilated seats, a black roof, and more standard safety. But there’s also the aforementioned Nissan Kicks, Hyundai Kona, and Chevy Trax to contend with. Some might include the Kia Seltos and Soul in this subcompact mix as well. Note that the Nissan offers three contrast roof colors, the Toyota offers a hybrid, and Kia has a hybrid and an EV in the segment. Taken as part of that group, the biggest way the Taos stands out might just be how much it, well, doesn’t stand out.

The Early Verdict

In this particular segment, the cars may be small but the level of competition certainly is not. The 2025 Volkswagen Taos fits squarely in the middle of its class, which isn’t necessarily a bad place to be. It’s not the priciest nor is it the cheapest, but the Taos doesn’t skimp on features either.

You might not get a power-adjustable front passenger seat, but at least you can get it cooled and heated. Sure, there are some concessions, like it could be quieter and more fun to drive. But in the end, this is a sub-$27,000 basic transpo crossover that just so happens to have amenities befit of bigger and better vehicles. With that in mind, the Taos meets expectations.

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