How to get Taxonomy Menu working properly with Contextual Filters in Views?
You have made one mistake that is easy to make. The alias created in the menu doesn't change the "true" url. So when you go to catalog/cars Drupal will perceive that as taxonomy/term/[tid].

What you could do instead is to enable the default taxonomy term view that ships with Views (which uses taxonomy/term/[tid] as the path) and then set it up like you want.

See Screen shot: