Under the GTE's square-edged bonnet lies a motorsport-derived powertrain, with 220 kW (295 hp) and 400 Nm of petrol power supplied by the front mounted 1.6-liter turbocharged motor from Volkswagen's Polo R WRC. This is supplemented by two electric motors, the first of which is mounted inside the six-speed gearbox housing and produces 80 kW (107 hp) and 330 Nm of torque. The second is mounted on the rear axle, and produces the same 80 kW (107 hp) as the front motor, with 60 Nm less torque.

Unlike many performance hybrids, Volkswagen's GTE Sport doesn't just treat the electric motors as boost for the petrol engine – instead, the car is set up to use electric power at every opportunity for lower emissions and lower fuel consumption, which is put at 2.0 l/100km (118 mpg). In GTE Mode the car does take advantage of all three motors for maximum performance, hitting 100 km/h (62 mph) in 4.3 seconds on its way to a top speed of 280 km/h (174 mph).

There are three drive modes available, each offering a different combination of electric and petrol power. E-Mode is, as you'd expect, made up of only electric power, and offers 50 km (31 miles) of range without firing the rally motor. GTE Mode is the sportiest option, and takes advantage of all three motors for maximum acceleration. Hybrid mode automatically decides where the power comes from.