Luxury cars aren’t getting cheaper in the United States, and it’s easy to see why. Development costs are rising, logistics aren’t getting easier, and automakers know they can charge more for high-end models and protect their profits.
At the same time, buyers are demanding more upscale features across the board. This pressure is forcing mainstream brands to rethink their SUVs and sedans, adding more polish, better technology and richer materials to keep up.
A Japanese SUV is getting a complete redesign for 2027, with a greater focus on comfort and refinement. Our goal is to deliver a truly premium feel without the eye-watering price tag that often comes with it.
In order to provide you with the most up-to-date and accurate information possible, data used in this article was compiled from Toyota and other authoritative sources, including Car and Driver, Edmunds and TopSpeed.
The current state of the luxury car market today
How competition, technology and pricing are reshaping the segment
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The U.S. luxury car market is in the midst of a major shift. Electrification and software-driven capabilities are reshaping the field, with long-time leaders now sharing the spotlight with new challengers.
As of 2026, brands such as BMW, Lexus and Mercedes-Benz remain at the top of the list, with BMW slightly ahead and Lexus making headway with 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 mid-size sedans have taken 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. A field that once revolved around brands like BMW, Mercedes and Audi has evolved into a landscape shaped by electric powertrains, advanced driver assistance systems and large digital displays, while companies like Tesla and Cadillac strive to take a technology-first approach to gaining momentum.
Toyota’s growing SUV range
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Over the past decade, Toyota has quietly moved its SUVs upmarket. By moving to a more unified global platform, the brand is focusing on strengthening the structure and improving the road feel of its vehicles.
This change helps lower the center of gravity and improves suspension setup, giving these SUVs a more composed, confident ride. The result is a smoother, more controllable experience that’s closer to a luxury car than a traditional mainstream SUV.
Internally, Toyota has made just as many changes. Hard plastics have been replaced with softer materials, cleaner digital displays and more upscale touches throughout the cabin, as well as expanded safety technology and comfort features like a panoramic roof and ventilated seats. The overall effect is that the SUV lineup feels noticeably more refined and modern than it did a few years ago.
How the 2027 Toyota Highlander is raising the bar
A closer look at its design, technology and value upgrades
The 2027 Toyota Highlander looks nothing like the outgoing model, and that’s intentional. With its new electric image, it adopts Toyota’s hammerhead front end with a closed grille and slim full-width LED lighting for a cleaner, more modern look.
The proportions have been rescaled to look lower and wider. The roof has been lowered by nearly an inch, the body is more than two inches wider, and the wheelbase has been extended by eight inches to give it a more stable stance.
Aerodynamics is a focus of the redesign. Semi-flush door handles and a new wheel design help reduce drag, with sizes ranging from 19-inch aerodynamic alloy wheels to 22-inch wheels on higher trims.
Toyota has also refreshed the color palette with new hues like Everest, Ecstasy Blue and Reservoir Blue. Two-tone combinations are also available, pairing colors like Air-Cool Pearl or Heavy Metallic with a contrasting Midnight Black roof.
Technologically advanced premium cabin
The 2027 Highlander’s cabin takes a definite step upmarket. The panoramic glass dashboard combines the 12.3-inch driver display and the standard 14-inch infotainment screen into a stylish digital interface.
The longer wheelbase also improves interior space. With more than eight inches of additional space between the wheels, the third row is designed to comfortably accommodate adults and includes a power seating system for convenience.
Toyota also upgraded materials throughout the cabin. SofTex upholstery, soft-touch surfaces, and a redesigned center console with a suede-lined wireless charging pad help give the interior a more premium feel.
New ambient lighting adds another layer of sparkle. The 64-color system, Toyota’s largest panoramic glass sunroof ever, and improved acoustic glass combine to create a quieter, more refined cabin.
More passenger and cargo space
Longer wheelbase and smarter packaging improve interior space
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The 2027 Highlander gains significantly more interior space thanks to a new electric platform. The biggest change is that the wheelbase has been extended by 8.1 inches, bringing the total to 120.1 inches, surpassing even the larger Grand Highlander.
The flat-bottom EV layout provides more usable space inside the car, although the roofline is slightly lower to improve aerodynamics. The third row now has 1.5 inches more legroom and about an inch more headroom than the previous model.
The added space makes the Highlander feel more like a true three-row family SUV than a tight makeshift seat. Cargo capacity has also increased, 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 in passenger comfort.
Two electric powertrain options
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The 2027 Highlander takes a major leap and goes all-electric, leaving the gasoline engine behind entirely. Instead, buyers can choose between two battery-electric powertrain setups.
The entry-level XLE uses a single electric motor to drive the front wheels, producing 221 horsepower and 198 pound-feet of torque. For even more performance and traction, a dual-motor all-wheel-drive system boosts output to 338 horsepower and 323 pound-feet of torque.
Since the electric motor drives the axle directly, the traditional eight-speed automatic gearbox is gone. In its place is a simple single-speed direct-drive unit that delivers smooth, instant power.
The new layout also adds useful electric vehicle features. Vehicle-to-load capability allows the Highlander to power outside equipment, while a standard heat pump helps maintain efficiency in cold weather.
Battery options designed for range and flexibility
Two package sizes offer different driving range and charging performance
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The 2027 Highlander is available in two battery sizes, giving buyers more flexibility depending on how they plan to use the SUV. The standard 77.0 kWh battery pack is expected to provide a range of 287 miles in front-wheel-drive models and approximately 270 miles in a dual-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, increasing estimated range to about 320 miles.
Charging is also more convenient thanks to a standard NACS port, giving the Highlander access to the Tesla Supercharging network. On a DC fast charger, under ideal conditions, either battery can be charged from 10% to 80% in about 30 minutes.
Home charging is also pretty fast. With the built-in 11 kW on-board charger and 240-volt Level 2 setup, a full charge takes about 7 hours for the smaller battery and about 9 hours for the larger battery pack.
Where can the price of Highlander fall?
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The all-electric 2027 Highlander is expected to arrive in the United States early next year, with production likely to begin at Toyota’s Kentucky plant before the end of the year. Official pricing has yet to be determined, but analysts say car and driver and edmonds Entry-level XLE single-motor models are estimated to start at about $48,000.
That’s a significant jump over the current hybrid version, largely thanks to a new battery-electric platform. Even so, the amount of standard tech and equipment included may make the price feel quite competitive.
Upgrading to the XLE all-wheel-drive version is expected to push the price to about $51,500. A Limited dual-motor model with a larger battery will likely cost closer to $57,000.
Those numbers put it on par with rivals like the Kia EV9. Buyers who still prefer gasoline or hybrid power will likely continue to view the Toyota Highlander as a larger alternative in Toyota’s lineup.
