Luxury cars aren’t getting any cheaper in the U.S., and it’s easy to see why. Development costs keep climbing, logistics aren’t getting simpler, and automakers know they can charge more for premium models and protect their margins.
At the same time, buyers are asking for more upscale features across the board. That pressure has pushed mainstream brands to rethink their SUVs and sedans, adding more polish, better tech, and richer materials to keep up.
For 2027, one Japanese SUV is getting a full redesign with a bigger focus on comfort and refinement. The goal is to deliver a genuinely premium feel without the eye-watering price tag that usually comes with it.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Toyota and other authoritative sources, including Car and Driver, Edmunds, and TopSpeed.
New cars are so expensive that a six-figure salary barely cuts it
The modern car market is leaving average buyers behind.
Where the luxury car market stands today
How competition, technology, and pricing are reshaping the segment
The U.S. luxury car market is in the middle of a major shift. Electrification and software-driven features are reshaping the segment, and longtime leaders are now sharing the spotlight with newer challengers.
As of 2026, brands like BMW, Lexus, and Mercedes-Benz still sit near the top, with BMW holding a slight lead and Lexus gaining ground thanks to its hybrid lineup. Today’s best-selling luxury models are mostly crossovers and SUVs, such as the Tesla Model Y, Lexus RX, and BMW X5, while traditional midsize sedans have taken a back seat.
Over the past two decades, the definition of luxury has moved from engine size and mechanical prestige to technology, connectivity, and efficiency. What once revolved around brands like BMW, Mercedes, and Audi has evolved into a landscape shaped by electric powertrains, advanced driver assistance systems, and big digital displays, with companies such as Tesla and Cadillac leaning hard into that tech-first approach to gain momentum.
Toyota’s evolving SUV lineup
Over the past decade, Toyota has quietly pushed its SUVs upmarket. By moving to a more unified global platform, the brand focused on strengthening the structure and improving the way its vehicles feel on the road.
That change helped lower the center of gravity and refine the suspension setup, giving these SUVs a more composed, confident drive. The result is a smoother, more controlled experience that feels closer to a luxury vehicle than a traditional mainstream SUV.
Inside, Toyota has made just as many changes. Hard plastics have given way to softer materials, cleaner digital displays, and more upscale touches throughout the cabin, along with expanded safety tech and comfort features like 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.
This Toyota hybrid makes some luxury SUVs hard to justify
Turns out you don’t need a luxury badge to feel spoiled—this Toyota SUV is refined and seriously comfortable.
How the 2027 Toyota Highlander raises the bar
A closer look at its design, tech, and value upgrades
The 2027 Toyota Highlander looks completely different from the outgoing model, and that’s intentional. With its new electric identity, it adopts Toyota’s hammerhead front end, featuring a closed grille and slim full-width LED lighting for a cleaner, more modern appearance.
The proportions have been reshaped to look lower and wider. The roof sits nearly an inch lower, the body is over two inches wider, and the wheelbase stretches by eight inches to give it a more planted stance.
Aerodynamics were a key focus in the redesign. Semi-flush door handles and new wheel designs help reduce drag, with sizes ranging from 19-inch aero-capped alloys to available 22-inch wheels on higher trims.
Toyota also refreshed the color palette with new shades like Everest, Spellbound, and Reservoir Blue. Two-tone combinations are available as well, pairing colors like Wind Chill Pearl or Heavy Metal with a contrasting Midnight Black roof.
A tech-forward premium cabin
The 2027 Highlander’s cabin takes a clear step toward the premium side of the market. A panoramic glass dashboard combines a 12.3-inch driver display with a standard 14-inch infotainment screen into one sleek digital interface.
The longer wheelbase also improves interior space. With over eight extra inches between the wheels, the third row is designed to comfortably fit adults and includes a motorized seating system for easier access.
Toyota has also upgraded the materials throughout the cabin. SofTex upholstery, soft-touch surfaces, and a redesigned center console with suede-lined wireless charging pads help give the interior a more upscale feel.
New ambient lighting adds another layer of polish. A 64-color system, Toyota’s largest panoramic glass roof yet, and improved acoustic glass all work together to create a quieter, more refined cabin.
10 Toyota and Lexus Models That Compete With the World’s Most Luxurious Automakers
These are the Toyota and Lexus models that take on the world’s most luxurious automakers, delivering unmatched style, performance, and comfort.
More space for passengers and cargo
A longer wheelbase and smarter packaging improve interior room
The 2027 Highlander gains noticeably more interior space thanks to its new electric platform. The biggest change is an 8.1-inch wheelbase stretch, bringing the total to 120.1 inches and even surpassing the larger Grand Highlander in that measurement.
Even though the roofline sits slightly lower to improve aerodynamics, the flat-floor EV layout opens up more usable room inside. The third row now gets an extra 1.5 inches of legroom and about an inch more headroom compared with the previous model.
That added space makes the Highlander feel more like a true three-row family SUV rather than a tight occasional-seater. Cargo capacity also improves, growing 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 vehicle’s footprint. It’s still shorter than the Grand Highlander, but the longer wheelbase helps close the gap when it comes to passenger comfort.
Two electric powertrain options
The 2027 Highlander takes a major leap forward by going fully 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, producing 221 horsepower and 198 lb-ft of torque. For more performance and traction, a dual-motor all-wheel-drive system boosts output to 338 horsepower and 323 lb-ft of torque.
Because the motors drive the axles directly, the traditional eight-speed automatic transmission is gone. In its place is a simple single-speed direct-drive setup that delivers smooth, immediate power.
The new layout also adds useful EV features. Vehicle-to-load capability lets the Highlander power external devices, while a standard heat pump helps maintain efficiency in colder weather.
The Japanese SUV With The Highest Fuel Cost Savings
SUVs, especially the bigger ones, aren’t known for their fuel efficiency, but one Japanese model stands out from the crowd–and it has three rows.
Battery options built for range and flexibility
Two pack sizes offer different driving ranges and charging performance
The 2027 Highlander offers two battery sizes, giving buyers a bit more flexibility depending on how they plan to use the SUV. The standard 77.0-kWh pack delivers an estimated 287 miles of range in front-wheel-drive models, or about 270 miles with the dual-motor all-wheel-drive setup.
For drivers who want more range, a larger 95.8-kWh battery is available. It comes standard on the Limited and optional on the XLE AWD, increasing the estimated driving range to around 320 miles.
Charging is also more convenient thanks to a standard NACS port, which gives the Highlander access to the Tesla Supercharger network. On a DC fast charger, either battery can go from 10 to 80 percent in roughly 30 minutes under ideal conditions.
Home charging is fairly quick as well. With the built-in 11-kW onboard charger and a 240-volt Level 2 setup, a full charge takes about seven hours with the smaller battery or around nine hours with the larger pack.
Where the Highlander could land on price
The all-electric 2027 Highlander is expected to arrive in the U.S. early next year, with production likely beginning at Toyota’s Kentucky plant before the end of this year. Official pricing hasn’t been confirmed yet, but analysts from Car and Driver and Edmunds estimate the entry-level XLE single-motor model will start around $48,000.
That’s a noticeable jump over the current hybrid version, largely due to the new battery-electric platform. Even so, the amount of standard tech and equipment included could make the price feel fairly competitive.
Moving up to the XLE all-wheel-drive version is expected to push the price to roughly $51,500. The larger-battery Limited dual-motor model could land closer to $57,000.
Those numbers would place it right in the mix with rivals like the Kia EV9. Buyers who still prefer gasoline or hybrid power will likely continue looking at the Toyota Grand Highlander as the larger alternative in Toyota’s lineup.
