Volkswagen Taos vs Hyundai Palisade Hybrid

The 2023 Volkswagen Taos was a compact SUV designed to appeal to a broad audience with its stylish and sporty appearance. Despite its small size, the Taos offered a premium look with features like bold 19-inch alloy wheels and a bright Cornflower Blue paint job. Inside, the Taos Highline trim resembled a more affordable Audi, with light grey seat and dashboard accents, gloss black trim, and leather seats. Volkswagen claimed the Taos was nearly as roomy as the larger Tiguan, making it one of the most spacious subcompact SUVs available.

In contrast, the 2026 Hyundai Palisade Hybrid was a larger, three-row crossover that combined style with practicality. The Palisade Hybrid featured a massive grille, LED projector headlights, and a stack of LED daytime running lights, giving it a commanding presence. Inside, the Palisade Hybrid offered a comfortable and thoughtfully designed cabin with organic shapes and high-quality materials. The interior was filled with storage solutions and advanced features, making it a standout in the non-luxury crossover segment.

The 2023 Volkswagen Taos was powered by a turbocharged 1.5-litre four-cylinder engine, producing 158 horsepower and 184 lb-ft of torque. The engine was paired with an eight-speed automatic transmission for front-wheel drive models and a seven-speed dual-clutch automatic for all-wheel drive versions. Despite its sporty appearance, the Taos struggled with power delivery, often exhibiting unpredictable powertrain responses. The dual-clutch transmission's halting behaviour and the engine's lack of power were notable drawbacks. However, the Taos offered a Germanic driving character with firm handling and excellent visibility, making it enjoyable to drive on winding roads.

The 2026 Hyundai Palisade Hybrid, on the other hand, boasted a more powerful and efficient powertrain. It combined a 2.5-litre turbocharged four-cylinder engine with two electric motors and a 1.65-kWh battery, producing a total of 329 horsepower and 339 lb-ft of torque. The advanced eight-speed automatic transmission and hybrid system optimized power distribution, resulting in impressive performance and fuel efficiency. The Palisade Hybrid's cabin was remarkably quiet, with noise-absorbing materials and acoustic glass keeping road and engine noise at bay. The steering was sharp and responsive, although the pedal feel was somewhat soft.

The 2023 Volkswagen Taos offered a spacious interior with comfortable seating and ample storage space. The Trendline trim featured cloth seats, while the Comfortline and Highline trims offered CloudTex artificial leatherette and real leather, respectively. Cold-weather equipment was standard in Canada, including heated side mirrors, heated washer nozzles, heated front seats, and a heated steering wheel. The Taos provided generous rear-seat room and comfort, with plenty of legroom and a panoramic sunroof in the Highline trim. Cargo space was also impressive, with up to 1,866 litres available with the rear seats folded down.

The 2026 Hyundai Palisade Hybrid offered a comfortable and well-equipped cabin with seating for up to eight passengers. While the Palisade Hybrid's total cargo capacity of 2,455 litres trailed some competitors, it still provided ample space for most needs. The second-row legroom was slightly reduced due to the battery's position, but the third row remained usable. The Palisade Hybrid came standard with dual-zone climate control, multiple USB-C power outlets, and a second-row bench seat, with captain's chairs available on higher trims. The cabin was filled with convenient storage solutions, making it a practical choice for families.

The 2023 Volkswagen Taos came equipped with standard digital instrumentation, with an eight-inch screen on Trendline and Comfortline trims and a 10.25-inch display on the Highline. The infotainment system varied by trim, with the Highline offering an eight-inch touchscreen, wireless Apple CarPlay and Android Auto, and an eight-speaker Beats Audio system. However, the user experience was marred by hidden virtual controls, a cumbersome radio tuning process, and ineffective voice-recognition technology. Pairing a smartphone and using Apple CarPlay or Android Auto was recommended for a smoother experience.

The 2026 Hyundai Palisade Hybrid featured a standard 12.3-inch touchscreen and digital instrument cluster, with wireless Android Auto and Apple CarPlay. The infotainment system included HD and Sirius XM satellite radio, a Driver Talk intercom system, and a 14-speaker Bose stereo on higher trims. A built-in dashcam was available on the Ultimate Calligraphy trim, providing front and rear views. The Palisade Hybrid also introduced "Stay Mode," allowing the climate control and infotainment system to run while the gas engine was off, provided the hybrid battery had sufficient charge.

The 2023 Volkswagen Taos improved its safety features for the 2023 model year, with standard Front Assist, blind-spot monitoring, and rear cross-traffic alert on the Trendline trim. The Comfortline added Lane Assist, Travel Assist, Emergency Assist, and an active version of blind-spot monitoring. The Highline trim included additional features like automatic high-beam headlights, parking sensors with automatic braking, and a road-sign recognition system. Travel Assist performed well, providing smooth and accurate assistance on highways. However, crash-test ratings from the NHTSA and IIHS were decent but not perfect.

The 2026 Hyundai Palisade Hybrid came standard with a comprehensive suite of advanced driver assistance systems, including blind-spot warning, rear cross-traffic assist, and automatic emergency braking with pedestrian and cyclist detection. The blind-view monitor was standard on the XRT Pro and higher trims, providing a camera feed of the blind spot in the gauge cluster. The Palisade Hybrid's ADAS tech performed flawlessly during testing, with no false alerts. While crash-test ratings for the 2026 model were not yet available, the 2025 Palisade received a Top Safety Pick rating from the IIHS.