Hyundai and Kia basically struck gold with two SUVs that families can’t seem to stop buying. The Palisade leans into the more polished, comfortable, almost upscale vibe, while the Telluride has always played the slightly cooler, more aggressive sibling.

But even a proven formula doesn’t stay unbeatable forever. The newly redesigned 2027 Telluride still looks the part, but there are a few changes that might not land as cleanly for everyone.

And in the same space, a Toyota hybrid is quietly making a very strong case for itself. It’s starting to look like the kind of alternative that could pull buyers away from Kia’s biggest hit.

How Kia’s breakout three-row SUV became a household name

From underdog launch to segment leader, why families couldn’t get enough of it

Credit: Kia

To really get why the Telluride matters, you’ve got to rewind to when it first showed up in 2020. Back then, it was the newcomer stepping into a space dominated by the usual suspects like the Honda Pilot and Toyota Highlander.

At the time, Kia and Hyundai still had that “budget backup plan” reputation, even though they were clearly moving beyond it with better design and more premium features. The Telluride was basically their big swing at changing that perception for good.

How the Telluride became a family favorite

Credit: Kia

The Telluride really shook things up when it arrived. It gave families exactly what they were looking for—flexible seating for up to eight, a roomy cabin, solid cargo space, and a level of features that felt well above its price tag.

But what really made it stand out was how fresh it felt at the time. The bold, boxy styling and those signature amber daytime running lights made people do a double take.

It wasn’t just practical—it had presence. It looked modern, a bit rugged, and just cool enough to feel like something new had arrived in the segment.

Awards and accolades that made it a household name

Credit: Kia

What really put the Telluride on the map was how fast the industry warmed up to it. It didn’t take long before it was being called the “Range Rover for the middle class,” and praise started stacking up from every direction.

Car and Driver put it on its 10 Best Trucks and SUVs list six years in a row, which is almost unheard of. U.S. News & World Report scored it a 9.5 out of 10, and J.D. Power recognized it as a top midsize three-row SUV with standout resale value in its class.

Where the Telluride starts to show its cracks

Even a segment leader has weak spots once the competition catches up

Credit: Kia

It’s hard to mess with a hit, and that’s exactly what Kia was up against with the new Telluride. Redesigning something that already works this well is never going to be easy.

The latest version is bigger in every direction and about 400 pounds heavier overall, which changes the feel a bit. And if you were hoping for the more rugged X-Pro trim with a hybrid setup, that’s not on the table—it’s ICE-only for now.

New powertrains shake things up

Credit: Kia

The V-6 is officially gone. Where the previous Telluride kept things simple with a single engine choice, the new one switches things up with two four-cylinder setups—one hybrid and one standard.

For this piece, we’re focusing on the hybrid, since that’s where things get interesting. If you’re still loyal to the V-6, you’ll find it over in the Hyundai Palisade, but the hybrid here still delivers solid, everyday performance without feeling underpowered.

Base Trim Engine

2.5L

Base Trim Transmission

8-speed automatic

Base Trim Drivetrain

All-Wheel Drive

Base Trim Horsepower

274 HP

Base Trim Torque

311 lb.-ft.

Make

Kia

Model

Telluride

Segment

Midsize SUV

A more overworked exterior design

Credit: Kia

Funny enough, Hyundai-Kia may have taken the “Range Rover for the middle class” label a bit too literally. The new Telluride now leans harder into that upscale SUV look, while the Palisade sticks closer to a more classic, understated vibe.

In daylight, the 2027 Telluride actually looks pretty sharp with its cleaner lines and familiar lighting signatures carried over from the previous model. At night, though, the lighting setup doesn’t quite hit the same—everything feels a bit scattered, with the bright elements doing most of the heavy lifting.

Inside, it’s a different story. Aside from the slightly awkward five-inch HVAC controls, the cabin still feels genuinely impressive and hard to fault.

The Toyota Grand Highlander Hybrid as the safer choice

Why the hybrid alternative is winning over practical family buyers

At first glance, the Toyota Grand Highlander can feel a bit unnecessary, especially when the regular Highlander already exists as Toyota’s midsize three-row SUV. But the whole point is space, and this one goes a step further.

It stretches things out by about six inches overall and adds nearly seven inches of extra third-row legroom compared to the standard Highlander. It’s also another reminder of why people lean on Toyota so heavily—it’s hard to go wrong, and the Grand Highlander makes that case even stronger.

Why Toyota’s hybrid setup has the edge

Credit: Toyota

Like the Telluride, the 2026 Grand Highlander is offered with both gas and hybrid options. The difference is, Toyota gives you two different hybrid setups to pick from.

The standard hybrid is more efficiency-focused and a bit softer on performance, but the Hybrid MAX is the one that changes the conversation—it’s noticeably stronger than the Telluride’s hybrid and brings more towing capability to the table as well.

2026 Toyota Grand Highlander Hybrid specs

Space and versatility that tip the scales

Credit: Toyota

If the powertrain is the Grand Highlander’s trump card, the interior is what really seals the deal. Third rows usually get written off as “just in case” seats, but that’s not really the story here.

The Grand Highlander actually gives you more usable space, with 33.5 inches of third-row legroom compared to the Telluride’s 31.2. Headroom is basically a wash, though the Telluride does narrowly edge it out by 0.2 inches at 37.4 inches total.

Why the case is shifting toward Toyota

How the Grand Highlander quietly builds a stronger all-round argument

Credit: Toyota

The Telluride still feels like the fresh, attention-grabbing option, with a new interior, solid space, and strong cargo capacity. But the Grand Highlander has quietly been doing all of that—and then adding a bit more on top.

It offers two powertrains, a more conservative but broadly appealing design, and extra cargo room to work with. And the sales numbers back it up too, with the Grand Highlander edging ahead in 2025 at 136,801 units compared to the Telluride’s 123,281.

Familiar reliability you can count on

Credit: Toyota

If you’re still on the fence, the numbers start to make the picture clearer. The Grand Highlander scores an 85 out of 100 on the Auto Reliability Index with just 8.2 complaints, while the Telluride sits higher at 23.3 complaints per 10,000 units sold.

Looking at recalls, the Telluride’s longer track record also comes with more over its lifetime, according to NHTSA data. And when it comes to resale value, iSeeCars estimates five-year depreciation at 30.4 percent for the Grand Highlander versus 46.1 percent for the Telluride.

Safety and maintenance that won’t drain your wallet

Credit: Toyota

Of course, it’s not just about the showroom experience—it’s what life with the car actually costs over time. With the Grand Highlander, ToyotaCare comes standard and covers 25,000 miles of complimentary maintenance.

The Telluride does fight back with a strong 10-year, 100,000-mile powertrain warranty, but Toyota’s reputation here is the bigger story. Historically, the Grand Highlander isn’t the kind of SUV that tends to ask much of its owners in the first place.