More Power, but Where Does It Go? 2025 VW Taos Tested

3/19/25 UPDATE: This review has been updated with instrumented test results for the front-wheel-drive model.

Anyone who remembers German cupholders in the 1990s remembers a time when Teutonic vehicles weren't exactly engineered with American priorities in mind. But over time, as our market—and its voracious appetite for SUVs—has swollen to anaphylactic proportions, our amber waves of grain have garnered a little more attention. The Volkswagen Taos is evidence of that; this subcompact SUV was designed for the U.S. market. It offers solid handling chops in a roomy package full of features, and recent changes make it a more compelling option.

A Comprehensive Refresh

The formula for a mid-cycle refresh is straightforward, and the 2025 Taos hews to it. The new version doesn't look all that different from the front, but LED projector headlights have been made standard across the lineup. Out back, things get closer to revolution than evolution with a new taillight arrangement that spans the width of the aft end, and the badge now lights up, because of course it does.

There are some new wheel designs on offer, ranging from 17 to 19 inches, as well as a few new paint colors, although red remains mysteriously absent. Bright green and blue are on hand, though, if you're looking for something outside of the varying muted shades of grays and other cool colors—the German Rainbow.

Inside, Volkswagen updated the dashboard, giving the infotainment touchscreen a semi-floating appearance and adding some contrasting accents. There are some new materials scattered around the cabin as well. The base S makes do with cloth seats, while the SE bumps it up to a mix of cloth and leatherette, and the range-topping SEL upgrades to leather, which is available in a new dark blue motif.

VW also upgraded the base model's tech to include an 8.0-inch display, matching the size found in more expensive trims. Digital Cockpit, VW's name for its gauge cluster display, is standard across the lineup, but the S trim get an abridged version with a smaller screen size, 8.0 inches to the SE and SEL's 10.3-incher. Wireless smartphone mirroring is reserved for the SE and SEL models.

The powertrain didn't escape unchanged either. While the diminutive turbocharged 1.5-liter inline-four makes the same 184 pound-feet of torque as before, a wealth of new parts (upgraded injectors and piston rings, a larger intercooler, a new gas particulate filter, and a modified turbocharger housing) bumps horsepower by 16, from 158 to 174.

In even better news, the AWD models' sloppy seven-speed dual-clutch automatic transmission has been abandoned, and in its place is a much tidier eight-speed auto, which was already found on front-drivers. The suspension remains unchanged with the front-driven models employing a rear torsion-bar setup, while AWD variants get a multilink arrangement out back. The Taos continues to rest on struts up front.

As with many other recently refreshed cars, the 2025 Taos gained a bit of weight. A front-drive Taos tipped our scales at 3305 pounds, which is just a hair heavier than the last model we tested, a 2022 front-drive variant that rang in at 3244 pounds.

Better Than Before

The Taos has never been bad to drive, but the powertrain updates deliver an immediately noticeable improvement in the vim department. Throttle tip-in is perhaps a bit too aggressive, as the front-drive SE and its open differential produced prodigious one-wheel peel at times, but the car doesn't feel underpowered like it used to. Its engine note beats the soundtracks from competitors like the Nissan Kicks, to boot.

This is one of those times where it's important to realize that the ol' butt dyno isn't as precise as our actual test-track tools. While the front-wheel-drive Taos felt zippier over the road, instrumented test results told a different story. Its 60-mph time of 8.0 seconds was 0.6 second behind the 2022 FWD Taos we tested. The new model is also slower in the quarter-mile dash by 0.3 second, at 16.1 seconds, but the 2025's 89-mph trap speed is 2 mph higher than before. The 2025 Taos also asks for more braking room, requiring 188 feet to clamp down from 70 mph, 12 feet farther than the 2022.

The real star of the show, though, is the eight-speed automatic. Dual-clutch boxes can lack the inherent smoothness of a torque-converter automatic, so the cog-swap switcheroo gives the AWD Taos vastly improved road manners, especially when starting off. Despite packing more ponies, new FWD Taos models earn the same 28-mpg-city, 36-mpg-highway rating from the EPA as 2024 models. AWD models, though, pick up 1 mpg across the board, to 25 mpg city and 33 mpg highway.

Ride quality doesn't change from last year, which makes sense, as all the related bits went untouched. The tires can get a little loud over broken pavement, and wind noise can occasionally annoy, but the body has good control, and the steering has an appreciable amount of effort and off-center buildup. It's not explicitly a handler, but the Taos isn't afraid of a curve or two, even if its test-track results were a little disappointing; a front-drive Taos managed just 0.80 g on our skidpad, which is 0.03 g worse than its 2022 result despite wearing the same tires for both tests (Bridgestone Turanza LS100, 215/50R-18 all around).

Sometimes, it's not hard to tell where automakers cut corners to maximize value; but Volkswagen hides it well. During our brief drive in Texas, the Taos felt well built in a way that its competitors oftentimes don't—there's an inherent solidity to its overall fit and finish that we really enjoy. Even the steering-wheel switches are nice.

We did venture forth in both FWD and AWD models, but honestly, nothing in the subcompact segment truly needs all-wheel drive, as evidenced by models like the Chevy Trax, where it's not even offered. You're better off saving money and getting a good set of winter tires. All-wheel drive just adds weight, reduces fuel economy, and in the case of the Taos, steals away a couple cubes of cargo space. Yes, the multilink rear suspension is more sophisticated than the torsion-beam arrangement, but its effect on handling is negligible, and most buyers probably won't be able to suss out the difference anyway.

The VW's biggest disadvantage versus its segment rivals is its price premium. A starting figure of $26,420 puts it a couple grand or so above a base Kicks or a Chevy Trailblazer and about a thousand bucks above the Toyota Corolla Cross, and that's before the $1700 upcharge for AWD (on every trim except the SEL, where it's standard). Start piling on the options, and it gets weirder: The tippy-top Taos SEL asks $36,120, whereas none of the aforementioned vehicles have a trim that even crests the $31,000 mark. But the mid-tier SE is so well equipped that price-conscious buyers can still keep the Taos on their shopping list. As well they should—the 2025 updates make the Taos a solid little runabout, even if some of those updates don't convert directly to improved performance.

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