Kia’s All-New Telluride Showcases a Powerful Hybrid

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.

The New Kia Telluride is Designed and Built in America, for Americans

Considering it has been around since 2019 (as a 2020) model, the Kia Telluride did remarkably well in 2024, selling 115,504 units in the U.S. Sure, Kia is a Korean brand, but the Telluride was conceived and designed for the U.S. market, and is built in Georgia, so it’s fitting that the second-generation model was styled in California, where Kia has its American design center. 

The Telluride has been a bestseller, and it’s betting big on the update. (Jim Motavalli photo)

On October 28, Kia brought journalists to the Irvine, California center for a closeup look at the evolution of the new model. “The first Telluride had the right combination of elements to turn it into a very in-demand SUV,” said Sean Yoon, president and CEO of Kia North America. Details of the powertrain, price and other rather important details won’t be divulged until the Los Angeles Auto Show November 20.

When automakers sell huge numbers of a boxy SUV, they don’t want to mess with the formula all that much. “How do you follow up on a vehicle that meant so much to so many people,” said Tom Kearns, senior chief designer and head of the center. “It was daunting.” The box is still there, but the new Telluride has some design elements you’ll notice.

The Telluride has a big presence. Note new design element on the top of the wheel wells! (Jim Motavalli photo)

Kearns said one of the key elements was to “do something that makes you nervous.” Maybe on the Telluride that’s the bold, black, high-gloss grille with raised squares where you’d expect the headlights to be (they’re actually almost hidden at the sides), or the notches on top of each wheelarch that are intended to look like an attachment point (they’re not). And then there’s the wavy, non-wrap-around taillights with body color between the two elements. Flush door handles offer some aerodynamic benefit, but a lot of companies are doing those now.

Tom Kearns says a design inspiration was to “do something that makes you nervous.” (Jim Motavalli photo)

Kia showed the Telluride in top-of-the-line X-Pro form, with an aggressive off-road theme. There are four prominent tow hooks. The new Telluride is bigger, two inches so in length, and three in the wheelbase, with the aim of delivering a roomier three-row interior. The rear two rows seemed comfortable enough, with adequate head and legroom, though that was an impression from a static sit.

“The challenge was we had a very popular product we wanted to improve,” said Kurt Kahl, a chief designer on the Telluride. “We had a formula, but felt there were improvements to be made. And the result was a modern design that, particularly on the X-Pro, keeps the rugged attributes that our customers have loved.” He said California won the competition to deliver the new Telluride design, but Kia design studios around the world contributed to it. A guide, he said, was Kia’s “Opposites United” design philosophy,

The Telluride as a clay model in the design center. (Jim Motavalli photo)

Kia is betting big on the new Telluride. James Bell, head of communications for Kia North America, said the original model’s sales “grew every year since the launch,” unusual as cars age. And, he added, Kia is increasing capacity at its Georgia plant to meet the demand that it’s sure will be there.

Inside the Telluride. (Jim Motavalli photo)

In the room with the new Telluride were some small-scale models and full-sized clays that showed the design evolving. And a reveal of color combinations that include Deep Navy with Tuscan Umber, Blackberry and Sand Beige, and Deep Khaki with Saddle Brown. Or you can just black everything out.

A Telluride test car, with a camouflage design showing past design sketches. (Jim Motavalli photo)

Also on display was a camouflaged test car that, on closer examination, bore a design created from older Kia design sketches. And there was also an electric PV5 that looked to have been inspired by the Tesla Cybertruck. This PV5 was a SEMA exhibit in camper form, but Kia is actually selling a PV5 in Europe as a passenger and cargo van. According to spokesman Jim Hope, Kia is contemplating possible PV5 sales in the U.S.