Toyota Aims for the Throat of Hyundai, Kia Business With New SUVs

Americans have been snapping up the Kia Telluride and Hyundai Palisade three-row SUVs like hotcakes since they launched. Telluride has been so successful that Kia has doubled production of the US-made SUV over the last three years and minimized export of the model to around just 2 percent of total units made.

Now, a duo of competitors has emerged, joining the Jeep Grand Cherokee L, Kia Telluride and Hyundai Palisade in the mass market and premium three-row, midsize SUV categories: Toyota Grand Highlander and Lexus TX.

Toyota Motor Company is not only coming for the Stellantis and Hyundai Motor Group models, they're aiming for their throat with vehicles that are well thought out, executed, and deliver so much of what customers are looking for.

The Grand Highlander is filled with bits and bobs that make sure potential buyers know that they have done their homework on what families want and need. It offers good front-row small item stowage solutions,and a shelf on the passenger side comes complete with a charging outlet.

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Toyota's new SUV comfortably fits adults in every row, second-row window shades built in, and plenty of on-board charging for their devices in the second and third rows.

It also has more cargo space than the competition, besting even the Toyota family's own Sequoia in that regard.

Grand Highlander is available in three powertrains configurations, including two hybrid versions. It's not the most fuel-efficient vehicle on the planet, but getting upwards of 35 miles per gallon (mpg) in real world driving situations when all the key competition hovers in the low 20s is impactful for American families' bottom lines.

It also comes with a variety of drive modes, like the Telluride and Palisade. But, it's not as hardy or capable for trail-driving or true off-roading like the Jeep is.

"Both the Grand Highlander and TX open new opportunities for each brand. Lexus has not had a proper, US-size three row before, and the luxury space appreciates them," Stephanie Brinley, assistant director of research and analysis at S&P Global Mobility told Newsweek.

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The Lexus TX is the brother of the Grand Highlander. However, though they share a platform and many components, they are not entering the market for the 2024 model year stepping on each other's toes. Foremost, their styling is different, especially at the front end.

Lexus has designed their SUV to be less of a tailpipe polluter than the Toyota, offering buyers gasoline, turbocharged hybrid and plug-in hybrid options. That plug-in is estimated to be able to go around 33 miles on battery power alone, pretty much matching what the Chrysler Pacifica Hybrid delivers.

This model is a step toward sportiness with the recently refined version of the Lexus Driving Signature imbued at every level, and especially in the F Sport and the even more dynamic (and more expensive) F Sport Performance grades.

The top-tier TX 500h utilizes the four-wheel steering technology found in the Lexus RZ battery-electric vehicle to deliver the most connected and agile handling experience of the bunch.

This level of dynamism isn't something Jeep, Kia or Hyundai offer. To get it, customers need to cross-shop far more expensive models like the Mercedes-Benz GLS and BMW X7. However, neither of those is as fuel efficient.

Though the TX's interior design is more like that in the recently redone Lexus RX than the Grand Highlander, the cabin remains nonetheless functional.

"These vehicles will help the brands keep buyers who otherwise would leave for something with extra space," said Brinley.

With these two new products, Toyota has done their homework. But, that doesn't mean that Jeep, Kia and Hyundai are resting on their laurels. The new Kia EV9, a three-row, battery-electric SUV is coming to the U.S. later this year. Hyundai has promised that its take on the Kia, called the Ioniq 7, is coming soon. Jeep is in the process of electrifying its lineup.

Uncommon Knowledge

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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

About the writer


Eileen Falkenberg-Hull leads the Autos team at Newsweek. She has written extensively about the auto industry for U.S. News & ... Read more

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