A single fender notch split Kia's own engineers into two camps. That tiny detail sits inside a bigger story about the 2027 Telluride Hybrid's turbocharged engine and why it now questions Toyota's approach with the Grand Highlander. I drove this exact 2027 Telluride HEV X Line SX Prestige AWD in Santa Barbara in March, then again in Charlotte last week. Here is everything that changed my mind, and one number that might change yours.
Before we go further, here is a segment from my interview with Sang Lee, Product Planning National Manager at Kia America, that has never been published anywhere until now.
Torque News: What was the single most controversial decision Kia made while developing the 2027 Telluride?
Sang Lee: There were some. The notches on the fender, for example. Some people said, "Why do we need this?" Some others said, "I think that's cool." If it didn't have that notch, it would actually almost look odd.
Torque News: This is the first hybrid Telluride. Was the goal primarily fuel economy, emissions compliance, or performance? And what percentage of Telluride buyers do you expect to choose the hybrid?
Sang Lee: All of the above. This turbo hybrid in the Telluride literally questions Toyota's approach on the Grand Highlander. The turbo hybrid offers both power and efficiency. One of the biggest unmet needs in the segment is fuel economy and driving range. This 2027 hybrid Telluride addresses that. Hybrid interest is one of the highest in this segment.
Read that answer again. Lee just said this hybrid questions an entire rival lineup. Before you scroll further, ask yourself something simple. If a Kia executive is willing to say his SUV challenges Toyota by name, does the data back him up? Keep that question in mind as you read, and tell me your answer in the comments below.
The Exterior Debate Kia Almost Lost
That fender notch Lee mentioned is not a small thing once you see it in person. On the X Line SX Prestige trim, it pairs with 21 inch gloss black alloy wheels, LED projector fog lights, a liftgate lamp, and blacked out exterior emblems. My test unit wore Black Jade Green paint over a black interior, and the effect is more assertive than the outgoing Telluride ever managed.
Kia's own design team has already told Torque News which SUV they benchmarked most heavily when creating this second generation shape, and the fender notch is part of that larger design language, not an isolated flourish. Roof rails, a rear spoiler, dual sunroofs with a fixed second row panel, and a smart power liftgate round out an exterior that reads far more premium than the sticker price suggests.
Motor And Power, By The Numbers
Here is the pressing problem most Telluride shoppers have right now. They assume dropping the V6 means giving up power. It does not. The window sticker on my test vehicle lists a 2.5 liter turbo hybrid powertrain producing 329 horsepower and 339 pound feet of torque, paired with a six speed automatic transmission and paddle shifters. All wheel drive comes standard with a dedicated terrain mode, and self leveling rear suspension keeps the ride settled when the cargo area is loaded.
Kia's own engineers explained to me in detail how they engineered this turbocharged engine for long term reliability compared to the old V6, addressing the exact worry that keeps some shoppers on the fence.
One writer on our team has argued it is simply time to move past V6 engines in three row SUVs altogether, and after a week with this powertrain, I understand why.
A few numbers worth remembering from that turbo hybrid system:
- 329 combined horsepower and 339 pound feet of torque, both notably higher than the old naturally aspirated V6 ever produced.
- 31 mpg combined on the AWD trim I tested, with an EPA estimated annual fuel cost of just $1,500.
Interior And Infotainment That Finally Feels Expensive
Step inside the SX Prestige trim and the cabin stops feeling like a value proposition and starts feeling like a genuine competitor to luxury three row SUVs. My tester came loaded with the following standard features, confirmed directly from the build sheet.
- Dual 12.3 inch panoramic displays with navigation, a head up display, and an Ergo Motion driver's seat.
- Kia Connect with a three year Ultimate subscription, SiriusXM with a free trial, a Meridian premium audio system, a digital rearview mirror with HomeLink, dual wireless phone chargers, SynTex suede seating, heated and ventilated front seats, a heated steering wheel with memory, and engineered wood interior accents.
None of this is filler trim dressed up to look expensive. The wood accents, in particular, feel substantial rather than decorative, and the dual screen setup responds quickly enough that you stop noticing the technology and simply use it.
Second Row Comfort And Third Row Reality
Families cross shopping this SUV usually ask one question first. Can adults actually sit in the third row without complaint? The captain's chairs in row two are heated and ventilated on this trim, which is rare at this price point, and they slide forward with enough travel to free up real space behind them. The fixed panoramic glass over the second row brightens the whole cabin without adding the complexity of a second moving sunroof panel.
Row three remains best suited for kids and shorter adults on longer trips, which is consistent with nearly every vehicle in this class, including the Grand Highlander.
Cargo Space And The Small Details Nobody Reviews
Cargo capacity gets discussed constantly. What almost never gets discussed is how a dealer quietly adds hundreds of dollars in accessories before a Telluride ever reaches a customer.
My test unit's invoice included a towing package with a tow hitch, all season floor liners, carpeted floor mats, a cargo net, a cargo cover, and a carpeted cargo mat with seatback protection. Individually these are reasonable additions for a family hauler. Together they pushed the total manufacturer's suggested retail price past $61,180 on a vehicle with a base MSRP of $57,590. If you are negotiating at a dealership, ask specifically which of these were factory installed versus dealer added, because that distinction affects what you should actually be paying.
How It Drives, And Why The Cabin Stays Quiet
The turbo hybrid system does its best work at low speeds, where the electric motors carry more of the load and the four cylinder barely announces itself.
On the highway between Santa Barbara and my second test loop through Charlotte, road and wind noise stayed impressively controlled for a vehicle this size. Body roll is well managed for a family SUV, not sporty, but composed enough that a full third row load does not upset the ride.
Braking and steering feel predictable rather than exciting, which is exactly what most three row SUV buyers actually want, whether they admit it or not.
The Competition, And Why Sang Lee's Comment Matters
This is where Lee's comment about "questioning" the Grand Highlander gets tested against real numbers. Autoblog drove the 2026 Grand Highlander Hybrid Max and found the EPA's 27 mpg combined rating did not hold up in the real world, writing that "to put it lightly, that's not good enough." My Telluride Hybrid's window sticker lists 31 mpg combined with AWD, comfortably ahead of that Max trim, though slightly behind the non Max Grand Highlander Hybrid's EPA rated 34 mpg combined.
Torque News predicted years ago that Toyota's Grand Highlander would eventually force Kia's hand on a Telluride hybrid, and that prediction has now fully played out. The horsepower gap tells its own story too. Kia's 329 horsepower and 339 pound feet beats the standard Grand Highlander Hybrid's 245 horsepower by a wide margin, while still staying ahead of that trim on fuel economy.
A Simple Cost Comparison Worth Bookmarking
Here is a little reference table built from EPA data, published window stickers, and third party testing, useful for anyone cross shopping this segment.
That table alone answers the question most shoppers actually search for. Do you want fuel economy, power, or both. This Telluride is the only vehicle in that table trying to offer both at once.
The Solution To The Problem Most Buyers Actually Have
The real problem is not whether this Telluride is good. It clearly is. The real problem is that most buyers still shop by sticker price alone and get surprised at delivery. The solution is simple. Request the factory build sheet before you visit the dealership, compare it line by line against the base MSRP, and ask which accessories are removable. That single step would have saved me from a very awkward negotiation with the last dealer I dealt with, and it will save you thousands too.
A Small Moral For A Big Purchase
A three row SUV is rarely bought for one person. It is bought for a spouse, for kids, for aging parents who need a comfortable seat on a long drive. The best decision here is not the one that maximizes horsepower or bragging rights. It is the one that considers everyone who will actually ride in that third row. Slow down, read the build sheet, and choose with the whole family in mind rather than your own excitement in the driveway.
Would you rather have this Telluride's extra power or the Grand Highlander's extra fuel economy? Have you ever been surprised by dealer added accessories on your own invoice? Tell me your experience in the comments below.
Return tomorrow, or check our Torque News Home Page for more interesting automotive news articles.
Images by Armen Hareyan for this 2027 Kia Telluride Hybrid's review.
About The Author
Armen Hareyan is the founder and Editor-in-Chief of Torque News and an automotive journalist with over 15 years of experience writing car reviews and industry news. Now based in the Charlotte region (Indian Land, SC, he founded Torque News in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News on X, Linkedin, Facebook, and Youtube. Armen holds three Masters Degrees, including an MBA, and has become one of the known voices in the industry, specializing in the landscape of electric vehicles and real-world stories of actual car owners. Armen focuses on providing readers with transparent, data-backed analysis bridging the gap of complex engineering and car buyer practicality. Armen frequently participates in automotive events throughout the United States, national and local car reveals and personally test-drives new vehicles every week. Armen has also been published as an automotive expert in publications like the Transit Tomorrow, discussing how will autonomous vehicles reshape the supply chain, and emerging technologies in vehicle maintenance.
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