Front-wheel-drive models feature an 8-speed automatic transmission, while the 4Motion all-wheel drive is coupled with a 7-speed DSG transmission.
The Taos for the US and Canadian market is powered by a 1.5-liter, four-cylinder turbocharged gasoline engine known as the TSI Evo, borrowed from VW's European models. The positioning makes the Taos a subcompact crossover SUV. The Mexican-built Taos slots directly below the Tiguan, which is solely available in a long-wheelbase guise in the North American market, while acting as an indirect replacement for the discontinued Golf. It is the fifth addition to the Volkswagen SUV family in the last four years. The Taos debuted for the North American market on 13 October 2020 for the 2022 model year. Volkswagen's brand sales chief Jürgen Stackmann said the project "turned from a regional project into a global project." Global annual sales for the vehicle were projected at 400,000 units. Known as the 'Project Tarek' during development, the Taos/Tharu is considered the first Chinese-developed VW product that is sold outside China. The Taos/Tharu is based on the Volkswagen Group MQB A1, with its platform closely related and several sheet metals shared with the SEAT Ateca, Škoda Karoq and the Jetta VS5. The Tharu name is derived after the eponymous Tharu people, an ethnic group indigenous to Nepal and Northern India. The Taos is named after Taos, New Mexico. The vehicle is positioned below the Tiguan, and in South America and China above the T-Cross. It was first released in October 2018 as the Volkswagen Tharu in China, while the Taos was released in October 2020 as a restyled version of the Tharu for the North American, South American, and Russian markets. The Volkswagen Taos is a compact crossover SUV manufactured and marketed by Volkswagen.
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