The 2016 Australian Rally Champion was sixth-quickest on a rocky, 430km special between the Sea Camp and Al Ula, 25:02s off the pace set by Marek Goczal (Energylandia Can-Am) on Stage 2.
The #414 South Racing Can-Am entry of Taylor and navigator Andrew Short are now in the overall top 10, ninth at 32:59s behind Goczal, who is now two from two in this year's Dakar Rally in terms of stage wins proper.
The Pole's overall lead is 5:44s to Brazilian Rodrigo Luppi de Oliveira, who is driving another of the South Racing Can-Ams.
There is a new front-runner in the Trucks after Martin Macik, who won the Prologue and Stage 1, struck trouble.
The MM Technology driver dumped well over an hour on Stage 2, which was won by new overall leader Ales Loprais (Instaforex Loprais Praga).
In Quads, Alexandre Giroud (Yamaha Racing – SMX – Drag'on) extended his margin atop the standings with another stage win, while Francisco Lopez Contardo (Red Bull Can-Am) continues to hold sway in Lightweight Prototype after finishing second-quickest on the day.
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CLICK HERE for extended highlights of Stage 2