Kia Telluride Hybrid to be introduced in the U.S. in 2026: Report

  • Second-gen Telluride to feature hybrid tech when it comes out in early 2026
  • Expected to feature HMG's 2.5L Theta III hybrid powertrain & 6-speed automatic transmission
  • Expected to deliver around 300 hp, with a fuel efficiency of 25-30 MPG
  • ccNC, Digital Key 2 & HDP with conditional L3 autonomous driving expected

Update (November 5, 2024): ‘Exterior Design’ added and ‘Interior & Features’ updated.

Kia has substantially expanded its partially electrified vehicle portfolio since the launch of the Niro in 2016. Almost every global Kia SUV is available with a mild-hybrid, full-hybrid, and/or plug-in hybrid system. The Kia Telluride Hybrid will be the next to join these semi-electric models by 2026.

Exterior Design

Going by recent spy shots of test mules from South Korea, we feel that the next-gen Kia Telluride would have a familiar silhouette, projecting power with a large, boxy body. However, while the outgoing model has simplistic details, it would have certain offbeat elements.

2026 Kia Telluride front three quarter rendering
The 2026 Kia Telluride should feature a concave radiator grille flanked by tall headlamps. Image Source: YouTube/NYMammoth

An upright front-end with a wide radiator grille, a broad hood, and vertical headlamps should give it an imposing look. As auto illustrator NYMammoth previews in a rendering based on information revealed in spy shots, the new headlamps will likely have a more technical appearance with multiple clusters, and some of their elements may form an angular C shape.

On the sides, spy shots suggest the 2026 Kia Telluride would have flattish door panels, a straight shoulder line running the length of the vehicle, and squarish windows that would give it a true American SUV appearance. Flush roof rails and sleeker mirrors would provide it a marginally greater level of sophistication over the outgoing model. The rear-end is likely to be mostly upright for maximum space and comfort, and feature vertical tail lamps.

Interior & Features

Going by the changes reported for the next-gen Palisade, the new Telluride should have a completely different interior, one that is inspired by the EV9. We expect the Hyundai Motor Group’s ccNC (Connected Car Navigation Cockpit) system in the SUV, with at least around 30 inches of digital real estate.

Designers could differentiate the Telluride with the screen embedded in the dash instead of a free-standing design. Additionally, it will be interesting to see if a floating center console is included in high-end variants, moving between the first and second rows. We’re expecting the Telluride to arrive in 7- and 8-seater versions.

2024 Kia EV9 interior dashboard 2023 LA Auto Show
We’re expecting some similarities with the EV9 (pictured), but designers should differentiate the Telluride with a unique interior design.

A dual wireless smartphone charging system, wireless Apple CarPlay and Android Auto, Digital Key 2, head-up display, surround-view camera, and a premium sound system are expected in the new Telluride. Kia’s Highway Driving Pilot system with conditional Level 3 autonomous driving should also be available in select markets.

Multiple color schemes, trim, and upholsteries will likely be available for the interior of the next-gen Telluride. Some of the spy shots floating on the web have shown Kia using a combination of brown and beige colors in some of the test mules of the upcoming SUV. They have also revealed 60:40 split-folding second-row seats with a fold-down central armrest, B-pillar assist handles, and a new design for the door cards.

Kia Telluride Hybrid to get a 2.5L powertrain

On January 28, 2024, ET News published a report claiming that Hyundai is developing an all-new hybrid powertrain based on a 2.5-liter turbocharged gas engine. The electrically assisted engine will be mated to a 6-speed automatic transmission.

The first-ever Palisade Hybrid will debut this new hybrid system when it hits production in December 2024. As per the report on ETNews filed on June 2, 2024, the 2.5-liter ‘Theta III’ engine will be paired to an electric motor and battery that is bigger than what is currently seen in the Carnival Hybrid or the Sportage Hybrid. The South Korean publication reported that the new hybrid system is developed for mid- and large-sized models, and will also replace the diesel variant which is sold in a few global markets.

Kia Telluride engine bay
The new 2.5L Hybrid system should take the fuel economy of the Telluride to 25-30 MPG, with performance comparable to the V6 engine. Pictured is the current-gen SUV.

Kia has also confirmed that it is developing a next-generation hybrid system for large vehicles. Ho Sung Song, Kia’s CEO, has said that there were two new HEV systems in the works. “Compared to the existing Hybrid system, we expect significant improvements in power, torque, and fuel economy,” he said, at the Kia CEO Investor Day on April 5, 2024.

In response to the recent increase in Hybrid demand, we plan to develop and introduce a new HEV engine. The new hybrid system is set to be developed in two sizes, subcompact & midsize HEVs, and a large-sized HEV.

Ho Sung Song, President and CEO of Kia Corporation, at the Kia CEO Investor Day on April 5, 2024

On the current 3.8L V6 engine

Currently, the Kia Telluride is available with the Lambda II 3.8-liter naturally aspirated direct-injection V6 engine that develops 291 horsepower at 6,000 rpm and 262 lb.-ft. of torque. An 8-speed automatic transmission is standard and an all-wheel drive system is available optionally. The gas-powered model is easy to drive and offers decent performance, although handling is an area of improvement for the team developing the next-gen Telluride.

The Telluride clearly needs to improve its fuel economy game, and hybrid technology could help it overcome this limitation. It currently delivers a combined (EPA-est.) 23 MPG (FWD)/21 MPG (AWD), and these numbers are expected to fall in the 25-30 MPG range through electrification. Another common complaint in the three-row mid-size SUV is that it’s a bit noisy. Hybrid technology will greatly help in this area as well, as the powertrain can operate in EV mode when starting up and at low speeds.

Production & Release Date

ETNews reported on March 4, 2024, that the next-gen Kia Telluride (codename: Kia LQ2) will enter mass production in December 2025. It added that sales are expected to begin in early 2026. The Telluride is manufactured at Kia’s West Point assembly plant in Georgia.

2024 Kia EV9 GT-Line AWD
Given that many American consumers are reluctant to go down the path of all-electric, it makes sense to have a three-row hybrid SUV in the line-up.

2025 Telluride drives in with minimal changes

The Kia Telluride has received a small update for the 2025 model year in the U.S., possibly the final one in the first generation. The 2025 Kia Telluride gives customers enhanced safety with standard second-row side airbags and more convenience with standard Highway Driving Assist 1.5.

In the X-Line and X-Pro trims of the 2025 Telluride, aesthetic improvements include standard Gloss Black exterior accents, a Terracotta interior color, and embossed front seats. Moreover, a 12.3-inch dual-screen cockpit display has become standard and Digital Key 2 Touch available in these trims. The X-Pro AWD configuration rides 10 mm higher than before, offering better off-road capabilities, and it can tow 500 pounds more than in the previous model year – 5,500 pounds.

Blockbuster sales

Kia scored a home run with the Telluride in the U.S. In 2019, the year it launched the SUV, it sold 58,604 units. The Telluride was the sixth-highest-selling Kia in the country that year.

In 2020, the first full year of sales for the model, the Telluride was the third best-selling Kia, with 75,129 units delivered. In 2021, with 93,705 units sold, the Telluride retained its third rank internally. Fast-forward to 2023, the Telluride enjoyed its best-ever year in the U.S., with sales of 110,765 units, which should ideally increase with the availability of the hybrid version.

TopElectricSUV says

The Telluride presents a formidable option for families in search of a unique mid-size three-row SUV, deviating from the conventional American and Japanese vehicles that have dominated the market for years. Its interior impresses with its superior quality, comfort, technology, and generous space. However, the disappointing fuel economy subtracts from its appeal as a daily driver, leading to higher operating costs. Electrification through a hybrid or plug-in hybrid system can address this concern, and Kia appears to have a plan to pursue at least one of those options for the Telluride in the future.