The Tg500 incorporated several features from the Kabinenroller platform on which it was based, including the narrow body with tandem seating, the transparent acrylic bubble canopy, the low stance, and the direct steering.

A more minor advantage of tandem seating was that it made a mirrored export version to countries that drive on the left superfluous.

[4] The Tg500 ran on a 494 cc (30.1 cu in) air-cooled two-cylinder two-stroke engine positioned transversely over the rear wheels.

[4] The controls of the Tg500 were similar to those of the KR200 except for the Tg500's single starting mode for the engine and its H-pattern gearshift with reverse gear and no auxiliary lever.

The rear suspension was fully independent, with universal joints at both ends of each halfshaft, located by lower wishbones and coil springs with concentrically mounted shock absorbers.