Kia Telluride vs Toyota Grand Highlander: Which Three-Row SUV Is Better?

The Kia Telluride is the better choice for buyers who want stronger standard gas performance, more third-row and behind-third-row cargo space, and a significantly longer powertrain warranty, while the Toyota Grand Highlander is the better choice for buyers who prioritize maximum overall cargo volume and hybrid fuel economy. Both are among the most popular full-size three-row SUVs on the market, and for most Minnesota families, the decision comes down to warranty coverage, cargo needs, and efficiency preferences.

Walser Kia in Minnetonka, MN carries the Telluride lineup, including the new Telluride Hybrid, for shoppers cross-shopping against the Grand Highlander.

Kia Telluride vs Toyota Grand Highlander: Quick Comparison

Specification note: Kia’s Telluride underwent a generation change for the 2027 model year, moving from a V6 to a turbocharged 4-cylinder. Confirm current specs and pricing before comparing, since figures shift by trim and model year.

Which Has More Power?

The 2027 Telluride’s standard turbocharged 2.5-liter engine produces 274 horsepower, edging out the Grand Highlander’s standard 265-horsepower turbocharged engine. On the electrified side, the all-new Telluride Hybrid produces 329 horsepower — more than the Grand Highlander’s standard Hybrid (245 hp) but less than Toyota’s top Hybrid MAX trim, which delivers 362 horsepower for buyers who prioritize maximum output above all else.

Which Has More Cargo Space?

This one splits depending on which cargo figure matters most to you. The Telluride offers more space directly behind the third row — about 22.3 cubic feet versus the Grand Highlander’s 16 to 18.6 cubic feet — which is the space families actually use most often on a normal day with all seats occupied. The Grand Highlander pulls ahead on maximum cargo volume with all rear seats folded, at roughly 97.5 cubic feet versus the Telluride’s 89.3 cubic feet, which matters more for occasional big hauls like moving furniture or a home improvement run.

Which Gets Better Fuel Economy?

The Grand Highlander has an edge in fuel economy, particularly in its hybrid forms — the standard Grand Highlander Hybrid reaches up to 34 MPG combined, well ahead of the Telluride Hybrid’s EPA-estimated 35 MPG combined… though it’s worth noting the Telluride Hybrid is genuinely competitive here despite its higher horsepower output. On the gas side, the Grand Highlander’s standard engine slightly outperforms the Telluride’s at the pump, though the gap has narrowed significantly with Kia’s newer turbocharged engine compared to the outgoing V6.

Which Has the Better Warranty?

The Telluride holds a decisive advantage. Kia backs it with a 10-year/100,000-mile limited powertrain warranty compared to Toyota’s 5-year/60,000-mile powertrain warranty on the Grand Highlander — double the coverage in years. Toyota’s corrosion warranty does have an edge in one narrow area, offering unlimited mileage compared to the Telluride’s 100,000-mile cap, but the overall powertrain coverage gap heavily favors Kia.

Which Tows More?

The gas Telluride can tow up to 5,000 to 5,500 pounds depending on trim, essentially matching or slightly exceeding the Grand Highlander gas and Hybrid MAX models at up to 5,000 pounds. The new Telluride Hybrid is rated to tow up to 4,500 pounds, while the standard Grand Highlander Hybrid tops out lower, at up to 3,500 pounds — making the Telluride Hybrid the stronger towing choice among the electrified options from either brand.

Which Costs Less?

The Telluride generally carries a lower starting MSRP than the similarly equipped Grand Highlander, giving Kia shoppers more standard content for the money at comparable trim levels. Combined with its significantly longer powertrain warranty, the Telluride often presents a stronger overall value case, especially for buyers focused on total cost of ownership rather than sticker price alone.

Which Holds Its Value Better?

Independent resale data has generally favored the Grand Highlander and Toyota’s three-row lineup in five-year depreciation studies, reflecting Toyota’s long-standing reputation for strong resale value across its SUV lineup. That said, the Telluride has built its own strong reputation for resale within its segment and has previously won industry resale value awards, so the gap is narrower than it might first appear.

Kia Telluride vs Toyota Grand Highlander FAQ

Which has more horsepower, the Telluride or Grand Highlander?
The 2027 Telluride’s standard engine produces 274 horsepower, slightly more than the Grand Highlander’s standard 265-horsepower engine.

Which is better for towing?
The gas Telluride, with up to 5,000–5,500 pounds depending on trim, is comparable to or slightly ahead of the Grand Highlander’s 5,000-pound maximum.

Which has the better warranty?
The Telluride, backed by Kia’s 10-year/100,000-mile powertrain warranty compared to Toyota’s 5-year/60,000-mile coverage.

Which has more cargo space?
It depends on the measurement — the Telluride offers more space behind the third row, while the Grand Highlander offers more maximum cargo volume with all seats folded.

Which is more fuel-efficient?
The Grand Highlander, especially in its hybrid forms, though the new Telluride Hybrid is competitive at an EPA-estimated 35 MPG combined.

Does the Telluride come as a hybrid now?
Yes, Kia introduced the first-ever Telluride Hybrid for the 2027 model year, producing 329 horsepower and seating seven.

Compare the Telluride and Grand Highlander at Walser Kia

If you’re deciding between the Kia Telluride and Toyota Grand Highlander near Minnetonka, Plymouth, Wayzata, or the greater Twin Cities, visit Walser Kia to test drive the Telluride and Telluride Hybrid and see current pricing and warranty details in person.