2027 Kia Telluride Drives Like A Luxury SUV, But Fuel Economy Won't Bust Your Budget

It's tough to improve when you're already near the top of your class, but that's the task that's been laid out for the 2027 Kia Telluride. The Telluride was already one of the best three-row family SUVs in its segment, with a strong V6 engine, plenty of room for the family, and tastefully rugged looks. But, it wasn't without issues. The old V6 was pretty thirsty, and there were some missing tech features to go along with an aging exterior design.

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Now, the second-generation Telluride has arrived, with a thoroughly updated vibe, highlighted by an upscale new look and lots of impressive features. It has been completely redesigned with luxury exterior styling, a new set of powertrains, vastly improved fuel economy, and more space on the inside.

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To prove that they've raised the bar and addressed issues with previous models like middling fuel economy, Kia invited me out to Santa Barbara to drive the new Telluride, both on-road and off-road. I spent time behind the wheel of the two different versions of the Telluride — experiencing the luxury end of the spectrum and the rugged capability of their most adventurous model. And neither one disappointed.

Gone is the 3.8-liter V6 from the old Telluride, and in its place is the choice between a turbocharged 2.5-liter four-cylinder engine or a 2.5 turbo paired with a hybrid system. Kia was happy to boast about the extra torque provided by the new 2.5-liter engine; they mentioned it several times during the program, but the new four-banger is technically down on horsepower compared to the old V6.

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The V6 in the previous-generation Telluride made 291 horsepower and 262 lb-ft of torque. The new standard 2.5-liter engine produces 274 hp and 311 lb-ft of torque. With the hybrid powertrain, all the numbers are up. It puts out 329 hp and 339 lb-ft of torque — more than enough to make the new Telluride feel more motivated than with the old V6.

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While it doesn't exactly make for an exciting or thrilling experience, the hybrid does feel sufficiently strong. It makes a bit of noise under full-throttle acceleration, but the four-cylinder engine that's a big part of the equation isn't grating or unpleasant under flat-footed acceleration. The hybrid system is also rated as high as 35 mpg combined according to Kia, a particularly high number for the class and 13 mpg more than the previous-best the Telluride could muster.

Driving on local curvy mountain roads outside Santa Barbara, the Telluride performed a bit better than you might expect from a family hauler. It wasn't exactly sporty, but the steering was well-weighted, and the heft of the three-row crossover was managed pretty well, too. It was stable and composed around most corners, which means it should be able to keep your passengers from getting car sick on a mountain pass: there's no big undulations or body roll as it goes through curves.

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Less inspiring than the fuel-efficient hybrid powertrain and less impressive than the handling capabilities were the brakes. Stopping the big SUV took a surprisingly high amount of pedal pressure and a bit of patience. In some trims, the Telluride now weighs over 5,000 pounds, putting it in the same weight class as body-on-frame SUVs like the hefty Ford Expedition, and making it tougher to stop, at least from what I could tell during the drive. A vast majority of trims on the first-generation Telluride maxed out around 4,500 pounds, which made them feel a bit less ungainly to my mind.

Part of Kia's launch event for the new Telluride included some off-roading at a massive 7,000-acre California ranch. A number of family-hauling SUVs are offering similar off-road packages these days, blurring the line between real-deal off-road rigs and comfortable crossovers. Knobby all-terrain, off-road-oriented drive modes, a bit of added ground clearance, and some black plastic cladding are all part of the approach to stepping up a crossover's off-road game, and they're all part of the package with the Telluride X-Pro. It also gets an impressive 9.1 inches of ground clearance, and a high-resolution display that shows you exactly where the front tires are headed.

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We drove through the dust, tackled hand-built articulation obstacles, engaged hill-descent control on multiple occasions, and even made our way up a shallow stream. The Telluride was barely fazed. A few branches and twigs made a racket along the underside of the Telluride X-Pro, but the big three-row hauler was impressive on rocky and slippery terrain. 

With the new electronic limited-slip differential (e-LSD) and a few off-road traction modes to choose from, there was never a loss in confidence. Unfortunately, the off-road camera display I mentioned earlier shuts off at just 6 mph, which is well below the threshold I would've picked for an off-road camera system. Even some of the Kia folks quietly admitted to me that it would be better if the camera would stay on until 10 or 15 mph. Despite this small complaint, the Telluride was more capable off-road than even the most adventurous families will likely ever need.

Much like its predecessor, the new Telluride is properly comfortable in just about every scenario. Over bits of broken highway, the suspension soaks up most road imperfections. Having some relatively meaty tires seems to help in this department, too. The seats, in both the first and second row, are comfortable, and sized properly for adults, with enough bolstering for corners and support for side-to-side maneuvers. The third row is a bit less accommodating for adults, but that's relatively common in the Telluride's class.

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Getting into the third row is now easier, at least according to Kia, thanks to a second-row seat that tilts further forward than before. I had some difficulty climbing back there, but kids should be able to squeeze in without any issues; leg room has increased compared to the previous model in all three rows, and the third row gets the biggest increase at 0.7 inches of added space. The cargo area on the Telluride has grown a little bit, too, now with 88.3 cubic feet of storage behind the first row of seats (compared to 87 cubes on the previous generation).

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The Telluride's dual 12.3-inch displays are a part of the improved status quo, too, with high-resolution graphics and quick responses to inputs. A number of customizable themes help you make the cabin feel like your own, and if you want to kick out the jams, the new 14-speaker Meridian stereo is powerful enough to bother the neighbors.

There are a lot of available trims with the Telluride, with all sorts of equipment to pick and choose from, so the pricing of those trims covers a wide pricing array. And across the range, prices have gone up compared to the previous-generation model. The old base-trim LX, for example, had a starting price of $37,395 (including $1,545 destination fee), and top-trim SX-P X-Pro models started at $55,230 before adding any options.

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Now, the base trim for the non-hybrid four-cylinder Telluride starts at $40,735, and that model isn't much more efficient than the old V6 — in some trims it only just matches the old V6's numbers. The top-trim Telluride hybrid has an even-higher starting price of $59,135. Thankfully, it's likely to perform much better at the pump, keeping the cost of ownership a bit lower. 

The topped-out trim for fuel economy is the hybrid EX, which has estimates of 34 mpg city, 36 highway, and 35 combined. But even on all-wheel drive trims like the SX Prestige, the lowest the new hybrid Telluride drops is a combined estimate of 30 mpg combined. That will make a significant difference when it comes to the cost of fuel over a relatively short amount of time, so the increased upfront difference justifies itself pretty quickly.

If the old Telluride is the standard by which we're judging the redesigned model, it's a big success. The improved space, increased fuel economy, and impressive off-road capability are all part of a likable package that should appeal to families of all shapes and sizes. The outside has an upscale look that's reflected on the inside with high-quality interior materials, modern tech, and a comfortable cabin. There are a few drawbacks worth mentioning, however.

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The four-cylinder base engine is slightly down on horsepower and it comes with a significantly higher price than the old starter V6 model. The exterior styling, while it seems to be pretty upscale and received well by most, is a bit polarizing, especially with the in-your-face front grille (which I'll admit, took some time to grow on me). Rivals are all around, too. The Toyota Grand Highlander offers impressive efficiency of its own, with a gutsy powertrain to boot. Honda has also recently updated their three-row SUV, the Pilot, and it's worth a closer look, though it isn't nearly as efficient with the old V6 powertrain still running things.

That's a relatively short list of complaints, though, and there's a lot to like about the new 2027 Telluride. Kia has made their flagship SUV even stronger than before, and it should probably be on your short list if you're shopping for three-row SUVs.