Kia’s North American strategy focuses on the large SUV, Telluride, which is entering full testing for the 2026 model year. Recently leaked spy photos suggest that while the new Telluride will retain the familiar styling that contributed to its success, it will also incorporate major updates under the surface. The updates include a revamped powertrain and expanded platform sharing.
Since its launch in 2019, Telluride’s sales have grown consistently, with over 115,000 units sold last year alone, solidifying its role as a key model within the Kia. Building on this success, Kia appears to have chosen a strategy for the second-generation model that maintains a familiar exterior while enhancing similarities in design and powertrain structure with the Hyundai Palisade.
Exterior Familiarity, Structural Shift
The spy shots show that the Telluride retains angular body lines similar to its predecessor’s. However, the window lines and side silhouette reveal noticeable similarities with the new Palisade. In particular, the side structure hints at the potential for expanded platform sharing between the two models. Industry experts interpret this structural integration as a strategic move by the Hyundai Motor Group to reduce development costs for internal combustion engine models. They view the new Telluride as a combustion-engine model that balances design efficiency with a varied powertrain lineup, aligning with the broader shift toward electrification.
This approach contrasts with the bold exterior changes in the recently unveiled second-generation Palisade. The Telluride is evolving while maintaining its current design identity, focusing on improvements in interior technology and powertrain.
Hybrid Powertrain to Replace V6
The upcoming Telluride will likely phase out the current V6 engine and switch to a 2.5-liter turbocharged gasoline engine. This will be paired with the latest hybrid system in the new Palisade. The hybrid setup will deliver around 300 horsepower and fuel economy ratings between 25 and 30 miles per gallon. These improvements could enhance Telluride’s competitiveness in a North American market increasingly focused on fuel efficiency. However, some customers who prefer a smooth and quiet driving experience may find it challenging to replace the existing V6 engine’s feel fully.
Tech Updates and Market Timing
While exterior changes appear to be evolutionary, the interior is expected to receive upgrades in infotainment and driver-assist technologies—another critical factor in maintaining competitiveness in the family SUV segment.
The debut date remains unconfirmed, but based on Hyundai’s late 2024 reveal of the second-generation Palisade, the 2026 Telluride will likely break cover in the second half of 2025. Kia appears to be timing the launch carefully to maximize exposure and ride the momentum of its hybrid transition strategy.
Balancing Legacy and Innovation
With the Telluride poised for a hybrid makeover and deeper platform integration, Kia is betting on a strategy combining design continuity and technical modernization. The brand hopes this formula will resonate with existing fans while drawing in new buyers seeking efficiency and value.
If executed successfully, the next-generation Telluride could help reinforce Kia’s reputation in North America as a maker of high-quality, high-value SUVs—and potentially push the model into even stronger market territory. As development continues, industry watchers closely monitor whether the Telluride can set the benchmark in its class again.
