The 2020 Passat is powered by Volkswagen's 2.0-liter turbocharged and direct-injection EA888 engine, which produces 174 horsepower and 206 lb-ft of torque (22 lb-ft more than the previous Passat). The power is taken to the front wheels via a standard 6-speed automatic transmission with Tiptronic® shifting, with steering-wheel mounted shift paddles on R-Line models.

The TSI® engine features innovative solutions such as water-cooled exhaust gas routing through the cylinder head to the turbocharger (to efficiently reduce full-load fuel consumption) and a dual injection system with direct and multi-port injection. Thanks to its fully electronic coolant control system, the four-cylinder engine also offers highly efficient thermal management with a short warm-up phase; this reduces friction and decreases fuel consumption.

EPA-estimated fuel economy for the 2020 Passat is 23 mpg in city driving, 34 mpg on the highway, and 27 mpg combined.