The contact owns a 2014 Volkswagen Touareg. The contact stated that while operating the vehicle a burning odor was present inside the cabin of the vehicle and smoke was seen coming from the front console. After stopping the vehicle to inspect the cause it was discovered that the front passenger side seat heater had malfunctioned burning a hole into the seat and the passenger's pants. During the incident, the passenger sustained a burn to the left thigh area. The cause of the failure was not yet determined. The local dealer and manufacturer were not yet notified of the incident. The failure mileage was 128,000.