The 2025 Volkswagen Taos has a completely new look on the outside, a redesigned interior, and more basic features. Engine changes added 16 horsepower to the 1.5-liter turbocharged four-cylinder Taos, bringing the total output to 174 horsepower. Volkswagen will release the updated Taos subcompact SUV by the end of the year, with the base-level front-wheel-drive S model starting at $26,420, and the fully-loaded SEL model priced over $36,000. Volkswagen knows what it should and shouldn’t bring back from Europe after its mistake. Instead of trying to make Americans more like Europeans, the brand is now focused on giving North Americans what they want. Here’s the story of the updated 2025 Taos small SUV that came out not long ago. Improvements Made to Engines Volkswagen experts changed the fuel injectors, turbocharger housing, and piston rings in the 1.5-liter engine. They also had a gas particulate filter and a bigger condenser. The new total horsepower is 174, which is 16 more than before. The torque of 184 pound-feet stays the same, but changes in the torque curve may give you a little extra speed. With 4Motion all-wheel drive, the 158-hp Taos could go from 0 to 60 mph in 7.5 seconds, but only 7.4 seconds with front-wheel drive. For models with all-wheel drive, the seven-speed dual-clutch automatic gear that was available for front-drive models will be swapped out for an eight-speed one. Melinda Godec, the product manager, said that some customers thought “their car is breaking” because the transmission sometimes made shifting difficult, which fans didn’t like. In the US market, the only cars with a DSG are the Jetta GLI, the Golf GTI, and the Golf R. No problem with that. What Matters is Both Inside and Outside The inside of the Taos used to be all gray, but a light-colored bottom dash panel has made it look better. The door panels, made of soft-touch leatherette, have different color contrasts, and each trim piece has different stitching designs. An 8.0-inch tablet is now standard on all models. Unlike older models, this one sits in front of the redesigned dashboard instead of being fully built-in. Higher trim levels come with voice control, satellite radio, and wireless phone mirroring. The base model comes with Apple CarPlay and Android Auto that are hooked. Touch-sensitive climate control is now standard on both the SEL and SE models. The small SUV’s front and back look different now. The back has a standard full-width light bar, and the top has shorter headlights linked by lit trim. The SE models now have LED projector headlights on top of adaptive lighting and front and back parking sensors. VW thinks that the updated Taos will get as good gas mileage scores as the 2024 models, but they have yet to give any official numbers. In that test, the Taos with all-wheel drive got 33 mpg, which was one mpg more than what it said on the window sticker. In our earlier tests with the front-drive Taos, we saw up to 40 mpg on the highway at 75 mph, which was four mpg better than that model’s highway score. This week, at VW’s yearly dealer convention, we got to sit in on, poke, and test the new Taos. The inside is no longer dull, and the changes to the materials look good. Another beautiful color is Bright Moss Green, which is a bright shade of green. There are now two new colors for the improved Jetta and Jetta GLI. They are Monterey Blue Pearl and Monument Gray. We’ll let you know how much the 2025 Taos costs closer to its release later this year. We are also planning a third-generation Tiguan for 2025. Details relevant only to the US market will be shown at the Los Angeles car show in November.