Luxury cars It’s not getting any cheaper in the US, and it’s easy to see why. Development costs continue to rise, logistics aren’t getting any easier, and automakers know they can charge more for premium models and protect their margins.
At the same time, buyers are asking for higher-end features across the board. This pressure has forced major brands to rethink off-road vehicles and sedans, adding more polish, better technology and richer materials.
One for 2027 Japanese SUV gets a complete redesign with a greater focus on comfort and elegance. The goal is to deliver a truly premium feel without the eye-watering price tag that usually comes with it.
The information used to compile this article has been sourced to give you the most up-to-date and accurate information possible. Toyota and other authoritative sources, including Car and driver, Edmundsand TopSpeed.
Where the luxury car market is today
How competition, technology and pricing are reshaping the segment
The US luxury car market is in the midst of a major shift. Electrification and software-controlled features are reshaping the segment, and longtime leaders are now sharing the spotlight with newer competitors.
As of 2026, brands like BMW, Lexus and Mercedes-Benz are still near the top. BMW maintains a slight lead and Lexus is gaining ground thanks to its hybrid lineup. Today’s best-selling luxury models are mostly crossovers and SUVs like the Tesla Model Y, Lexus RX, and BMW X5, while traditional midsize sedans take a back seat.
Over the past two decades, the definition of luxury has shifted from engine size and mechanical prestige to technology, connectivity and efficiency. What once revolved around brands like BMW, Mercedes and Audi has become a landscape shaped by electric powertrains, advanced driver assistance systems and other vehicles. large digital displaysCompanies like Tesla and Cadillac are very likely to be the first to approach this technology to gain momentum.
Toyota’s evolving SUV lineup
Over the past ten years Toyota He quietly upgraded his SUVs. By moving to a more unified global platform, the brand focused on strengthening the structure and improving the way its cars feel on the road.
This change helped lower the center of gravity and improve the suspension, giving these SUVs a more compact, confident ride. The result is a smoother, more controlled experience that feels closer to a luxury car than a traditional mainstream SUV.
Inside, Toyota has also made many changes. Hard plastics have given way to softer materials, cleaner digital displays and more premium touches in the enlarged cabin safety equipment comfort features such as panoramic roofs and ventilated seats. The overall effect is an SUV lineup that feels noticeably more polished and modern than it did a few years ago.
How the 2027 Toyota Highlander raises the bar
Take a closer look at its design, technology and value enhancements
The 2027 Toyota Highlander looks completely different from the previous model, and that’s on purpose. With a new electric identity, it adopts Toyota’s hammerhead front end with a closed grille and subtle full-width LED lighting for a cleaner, more modern look.
The proportions have been reshaped to appear lower and wider. The roof sits nearly an inch lower, the trunk is two inches wider, and the wheelbase is extended eight inches to give it a more planted stance.
The main focus of the redesign was aerodynamics. Semi-faced door handles and new wheel designs help reduce drag, with sizes ranging from 19-inch aero-cap alloys to 22-inch wheels available on higher trims.
Toyota has also refreshed its color palette with new shades like Everest, Spellbound and Reservoir Blue. Two-tone combinations are also available, combining colors like Wind Chill Pearl or Heavy Metal with a contrasting Midnight Black roof.
Premium cabin with advanced technology
The cabin of the 2027 Highlander takes a clear step towards the premium side of the market. The panoramic glass dashboard combines a 12.3-inch driver display with a standard 14-inch infotainment screen in one bright digital interface.
The longer wheelbase also improves interior space. With more than eight additional inches between the wheels, the third row is designed for comfortable seating for adults and includes a motorized seat system for easier access.
Toyota has also upgraded all the interior materials. A redesigned center console with SofTex upholstery, soft-touch surfaces and suede-lined wireless charging pads help give the interior a more premium feel.
New ambient lighting adds another layer of polish. A 64-colour system, Toyota’s largest ever panoramic glass roof and improved acoustic glass all work together to create a quieter, more refined cabin.
More space for passengers and cargo
A longer wheelbase and smarter packaging improve interior room
The 2027 Highlander gains significantly more interior space thanks to its new electric platform. The biggest change is an 8.1-inch wheelbase extension, totaling 120.1 inches and even outpacing the larger one. Grand Highlander in that dimension.
Flat floor, although the roofline sits slightly lower to improve aerodynamics HOUSE layout opens up more useful room inside. The third row now gets an additional 1.5 inches of legroom and nearly an inch more headroom than the previous model.
That extra space makes the Highlander feel more like a true three-row family SUV than a tight casual seat. Cargo capacity also improves, increasing to 18.5 cubic feet behind the third row and about 87.5 cubic feet with the seats folded.
Overall, the redesign makes better use of the car’s footprint. It’s still shorter than the Grand Highlander, but the longer wheelbase helps bridge the gap when it comes to passenger comfort.
Two electric transmission options
The 2027 Highlander makes a big leap by going all-electric, leaving gasoline engines behind entirely. Instead, buyers can choose between two battery-electric powertrain setups.
The entry-level XLE uses a single electric motor driving the front wheels that produces 221 horsepower and 198 lb-ft of torque. Dual motor for more performance and traction all-wheel drive system boosting output to 338 horsepower and 323 lb-ft of torque.
As the motors drive the axles directly, the traditional eight-speed automatic transmission disappears. In its place is a simple single-speed direct drive unit that provides smooth, instant power.
The new layout also adds useful EV features. Car-charging capability allows the Highlander to run external appliances, while a standard heat pump helps maintain efficiency in cold weather.
Battery options built for versatility and flexibility
The two pack sizes offer different driving ranges and charging performance
The 2027 Highlander offers two battery sizes, giving buyers a little more flexibility depending on how they plan to use the SUV. The standard 77.0 kWh package provides an estimated range of 287 miles on front-wheel-drive models, or approximately 270 miles with a two-motor all-wheel-drive setup.
For drivers who want more range, a larger 95.8 kWh battery is available. It’s standard on the Limited and optional on the XLE AWD and increases the estimated driving range to about 320 miles.
Charging is also more convenient thanks to a standard NACS port that gives the Highlander access to the Tesla Supercharger network. Ten a DC fast chargerboth batteries can go from 10 to 80 percent in about 30 minutes under ideal conditions.
Charging at home is also quite fast. With built-in 11 kW on-board charger and 240 volts Level 2 a full charge during setup takes about seven hours with the small battery and about nine hours with the larger pack.
Where Highlander can come down on price
The all-electric 2027 Highlander is expected to arrive in the U.S. early next year, with production expected to begin at Toyota’s Kentucky plant by the end of this year. The official price has not yet been confirmed, but analysts Car and driver and Edmunds Estimate the entry-level single-motor XLE model to start around $48,000.
That’s a noticeable leap over it current hybrid versionmainly thanks to the new battery-electric platform. However, the amount of standard technology and equipment included can make the price feel quite competitive.
Stepping up to the all-wheel-drive XLE version is expected to raise the price to around $51,500. A Limited dual-motor model with a larger battery can cost closer to $57,000.
Those numbers will put it in the mix with its competitors Come on EV9. Buyers who still prefer gasoline or hybrid power will likely continue to look to the Toyota Grand Highlander as a larger Toyota alternative.
