Volkswagen Mexico started production of the Taos SUV for export this week, with the US being the first foreign market.

The automaker has already produced 4,300 units for Mexico.

Taos output follows an investment of US$400m. The Taos is expected to arrive at US dealers by the end of Q2 2021.

"With Taos, Volkswagen de Mexico strengthens its position as a key player in the brand's global strategy for the SUV segment and will increase production capacity at the Puebla plant, with products designed for the North American Region" said Steffen Reiche, CEO and president.

Volkswagen de Mexico will also begin production for Canada in coming weeks.