Kia has given its popular Telluride SUV a pretty significant upgrade for the 2027 model year, but the aesthetic tweaks and performance boosts don’t come cheap on the traditionally affordable utility vehicle. What’s worse is, as things stand some of the numbers don’t quite add up with the new engine configurations.
Arguably, the biggest change comes in the powertrain options. Gone is the naturally aspirated 3.8-liter V6 that hauled the 2026 Telluride; in its place comes a choice of a 2.5-liter turbocharged inline four, or that same I-4 in a hybrid configuration. On paper, this should be a major plus. The ICE option is smaller, but turbocharged, so it should be far more efficient while producing a similar amount of power. The hybrid option should justify its cost by adding to both fuel efficiency and power.
Stafford Kia, a dealership that will be selling these SUVs, alludes to this by saying: “For the 2027 Telluride, Kia chose to remove the V6 engine in favor of a fuel-sipping hybrid turbocharged 2.4L [sic] 4-cylinder engine, pushing out much higher numbers.”
Sure, sounds good. But then it goes on to point out that: “Expected to get roughly 22 MPG combined (AWD). The total range is about 400 miles per tank.” Which is essentially what the non “fuel sipping” naturally aspirated V6 in the 2026 Telluride was giving you. It’s worth noting that these are estimates, not figures from the EPA. The dealership is also a little off on the engine capacity. But given that this information is coming from Kia, it doesn’t bode well. Especially as a second dealership is putting out even bleaker numbers, estimating the FWD version at 22 mpg combined, and predicting the AWD version’s average MPG will be as low as 20.
Admittedly, the hybrid version of the vehicle does get 35 MPG, which is a significant improvement over the ICE model. But with a 4,500-pound towing capacity, you’re actually losing out on 500 pounds of hauling ability compared to the 2026 Telluride. Some 2026 trims can actually pull 5,500 pounds, representing a 1,000-pound loss with the switch to a hybrid powertrain.
Adding motors usually increases torque and, with it, some towing ability. So the spec sheet may be confusing at first glance. I can only assume a decision was made due to a thermal issue or due to how quickly the battery might discharge when the motors are under heavy loads. The issues with the new hybrid powertrain don’t stop there, as the price tag it carries may spark controversy.
The Kia Telluride’s hybrid pricing may have broken a golden rule
Over the past few years, the Kia Telluride has represented great value for money. It’s long been the best bang for your buck when it comes to three-row SUVs in the United States. It undercuts the also pretty excellent Hyundai Palisade, which it shares a platform with, and is definitely the most luxury you’re going to get for less than $40,000.
And while the base price has shifted upwards, it aligns with industry trends for the most part. The Mazda Miata is over $30,000 now, and Kia’s flagship three-row SUV has finally edged over $40,000 with fees included. The base MSRP with that charge is now $40,735; without it, $39,190. Ignoring the (admittedly mandatory) $1,545 charge, the AWD trim now costs almost $56,500. A top-of-the-line “SX Prestige X-Pro” now costs $56,790, which is a lot for a non-electric Kia.
The new hybrid version of the vehicle costs significantly more, with a starting MSRP of $46,490 sans destination. Due to the fact that the cheaper ICE trims don’t come with a hybrid option, you may be paying over $7,000 extra for the hybrid powertrain, though you may make that money back on gas, as the 13 miles per gallon difference is significant. However, the difference between the trims is only about $2,700, so you have a choice.
The hybrid X-Line SX-P AWD comes in at $57,590 while the equivalent ICE X-Line SX Prestige AWD is priced at $54,890. It’s worth noting Kia does not currently offer the most expensive ICE trim, the off-road-focused X-Pro SX Prestige AWD, with a hybrid powertrain.
There is a pretty obvious reason for the hybrid’s extra cost. Those batteries are pretty expensive, as anyone who has had to replace one will tell you. Strangely, though, the hybrid pricing does break a bit of a rule. Kia’s base hybrid is now about $2,000 pricier than the original Hyundai Palisade. For those who are unaware, Kia, Hyundai, and Genesis are the same company, with Kia generally producing cheaper, sportier takes on vehicles aimed at a younger demographic, Hyundai handling the mid-range and pushing into premium, and Genesis focusing on a luxury market. The lines have blurred a little in recent years, but a $2,000 premium on what is essentially the same vehicle under the hood is an odd choice.
While many of the price rises can be explained, it is also a bit of a gamble on Kia’s part. The biggest problem with all modern Kias is still the Kia badge on the hood. Despite the fact pretty much everything the South Korean company has produced in the last few years has been solid, there is a bit of a reputation for poor quality clinging to it. Kia did spend a few decades producing poor-quality vehicles, and doesn’t have a ton of prestige associated with it as a result. So while the new Telluride may still represent solid value, you are going to have a good number of people reluctant to part with close to $60,000 for what they see as a cheap Korean SUV.
