The mid-sized crossover Telluride is a major producer for Kia, which sold 125,000 of them in the U.S. last year, up sharply from the 59,000 in the first year of 2019.  The three-row Telluride helped push Kia’s midsized market share from 3.5 percent seven years ago to eight percent now. “The Telluride casts a halo over our entire SUV lineup and our entire brand,” said Russell Wager, vice president for marketing at Kia North America.

The new Kia Telluride in hybrid form. (Jim Motavalli photo)

The Telluride was completely redesigned for the 2027 model year, and that model (available both as a turbo gas car and as a hybrid) is now in showrooms. The media got its first shot at the car in Santa Barbara, California March 10.

Kia had a big year in 2025, selling 852,155 cars in the U.S., up seven percent from 2024, said James Hope, national product communications manager at the brand. The “flagship” Telluride is produced out of the brand’s West Point, Georgia plant, which Hope said is in a good position to deliver gas, hybrid and electric models as the market demands.

On the road in Calfornia. (Kia photo)

It’s interesting to point out that Kia actually outsold Hyundai for the first time back in January (60,794 for Hyundai, including Genesis, and 64,502 for Kia). I hadn’t realized that the two brands were actually in competition until, during the product demonstration, Kia showed a slide comparing the Hyundai Palisade unfavorably to the Telluride. The two cars are built on the same platform, but the Kia (the slide said) is more capable and comfortable, has more hybrid range, offers a real spare, tire, two wireless phone chargers, and a standard sunglass holder.

I asked about this unusual approach—which is like Chevrolet going after Buick—and was told that the Palisade is the number one cross-shopped vehicle with the Telluride. They’re going to buy one or the other, and Kia wants consumers to keep looking its way.

The Telluride offers up to 89.3 cubic feet of storage with the second and third row folded. (Jim Motavalli photo)

Sang Lee, group manager for product planning at Kia, said the “reimagined” Telluride was designed and is being built in the U.S., with American consumers in mind. It’s both 2.3 inches longer and more powerful, he said. Of course, SUVs were an American invention that no other country would likely have developed—though their appeal is global now.

Cargo space is increased with that longer length, to 22.3 cubic feet behind the third row, and up to 89.3 cubic feet with the two rear rows folded. Legroom in the cabin is also up.

The exterior design is very recognizably in the Kia family, though it offers unusual touches such as the twin vertical tail lamps and the non-functional black rectangles at the top of the wheel wells that are there to visually “anchor” the trim. A cool feature is the new tailgate light that not only illuminates cargo, but can change color and be adjusted for color.

The Telluride in off-road X-Pro form. (Jim Motavalli photo)

The car we were given to drive up to the 7,000-acre Porter Family Ranch in southern San Luis Obispo County was the Turbo-Hybrid SX Prestige AWD version, starting at $56,590 (and $60,210 as equipped). The twin-electric-motor hybrid would seem to be the one to buy, because it’s not hugely more expensive than the gas car ($39,190 base versus $46,490), and it should pay for itself quickly in fuel savings because of its 35-mpg combined. The hybri offers 329 horsepower (20 percent more than the 2.5-liter turbo), and its range of up to 637 miles really trounces the standard model’s 418.  

On the hills around Santa Barbara, the Telluride really showed off great acceleration (6.3 seconds to 60), exceptional handling for such a comparatively large vehicle. It’s also very quiet in operation, and the massage seat for the driver didn’t hurt either. In the hybrid, all three rows can get heated seats. There wasn’t much to dislike.

Inside the Telluride. (Jim Motavalli photo)

Later in the day, we took the rugged X-Pro model off road at the ranch. Though most owners will never ford streams or go nearly sideways (as we did) up hills, it’s nice to know it can be done. The car offers “mud mode,” which proved very useful, as did the forward-facing camera when it was impossible to see over the hood. Kia doesn’t break out X-Pro sales, but they’re probably significant. Even drivers who never go off the beaten path aspire to do so—or maybe they just like the image.

Living obstacles on the course were provided by herds of black cows, who are provided free range of the property. A California ranch is probably about as good as it gets for cows.

 Kia is likely to sell scads of these new Tellurides, and is already doing so, to buyers whose average age is 46. I’m not sure it’s actually hugely better than the Hyundai Palisade, but the rivalry is probably keeping both Korean brands sharp and focused.