Telluride reclaims large SUV crown in US, surpassing Toyota and Honda

The Kia Telluride has reasserted itself in the US large three-row SUV segment, overtaking its top Japanese rivals after falling behind both Toyota and Honda last year. The turnaround has sharpened a broader trend: Hyundai Motor and Kia are no longer just competing with Japanese brands — they are now trading blows with Detroit stalwarts Ford and Chevrolet for the segment lead.

The Telluride sold 98,111 units in the United States from January through August, up 16.7 percent from the same period last year, according to industry data released Thursday.

The Toyota Grand Highlander moved 96,917 units over the same stretch — an 8.5 percent year-on-year gain — but still trailed the Telluride by 1,194 vehicles. The Honda Pilot slipped 2.8 percent to 83,486 units, leaving it more than 10,000 units behind the Telluride.

The three models have swapped positions repeatedly in recent years. The Telluride led in 2023, the Honda Pilot claimed the top spot in 2024, and last year the Toyota Grand Highlander finished first with 136,800 units sold.

The Telluride's lead was not always assured this year. Through the first half, it had sold 73,602 units — 1,919 fewer than the Grand Highlander's 75,521. The Grand Highlander still held a narrow edge as late as the end of July, with 86,926 cumulative units, but August sales flipped the rankings in the Telluride's favor.

With its Japanese competition now behind it, the Telluride faces a stiffer challenge from American brands.

The tallest hurdle is the Ford Explorer, which sold 165,630 units from January through August — up 14.7 percent year on year — to hold the top spot among individual models in the segment.

The Chevrolet Traverse, sold under General Motors, is another rival the Telluride must overcome. The Traverse sold 81,417 units in the first half, outpacing the Telluride's 73,602 over the same period, with sales up 25.7 percent year on year.

The Hyundai Palisade has also turned heads. It sold 88,355 units through August, up 2.7 percent from a year earlier. While it trails on a cumulative basis, the Palisade outsold the Telluride, the Honda Pilot and the Toyota Grand Highlander in both July and August — posting two consecutive months at the top of the major three-row SUV rankings.

Buoyed by the strong performances of the Telluride and Palisade, Hyundai Motor Group's combined US market share reached a record 12.9 percent in August, up 0.7 percentage points from a year earlier. The group's share rose even as overall US auto sales fell 5.9 percent year on year that month.

Behind the Telluride's popularity is the second-generation, fully redesigned model that entered the US market earlier this year, drawing praise for its product competitiveness.

Its most celebrated strength is interior quality. Car and Driver rated the Telluride's cabin materials and design as holding their own against luxury-brand three-row SUVs, while characterizing the Grand Highlander's interior as comparatively ordinary in both materials and design. The Telluride's exterior styling was also judged to be bolder and more distinctive.

The model has also won praise for second- and third-row passenger space — a critical factor in family SUVs. While the two models were rated similarly for second-row room, reviewers found the Telluride's third row more comfortable for adults. Higher trims add heated third-row seats, a feature seen as targeting American consumers who frequently take long road trips.

The Telluride also stands out for its advanced convenience features. Reviewers highlighted a built-in dashcam function, Netflix, YouTube and Disney+ streaming, and smart garage-door integration, while noting that the infotainment system remains relatively intuitive despite the breadth of features. Upper trims add a 29.6-inch panoramic display, a 14-speaker Meridian audio system and a digital key.

The newly introduced hybrid variant has further lifted the model's profile. The new Telluride hybrid pairs a 2.5-liter turbocharged engine with an electric motor for a combined system output of 329 horsepower.

Green Car Reports, a US publication focused on eco-friendly vehicles, said the Telluride hybrid "strikes a good middle ground — delivering fuel economy close to Toyota's conventional hybrid while offering performance and driving feel closer to a high-output trim."

Price competitiveness adds to the appeal. The Telluride is priced roughly $3,000 below comparable trims from rivals. It is also assembled at a factory in Georgia, shielding it from the tariff burden that weighs on imported vehicles.