Kia’s Big Move: Next-Gen Telluride Goes Hybrid

Large SUV Telluride
Next Generation Model Under Development
Hybrid Addition

Kia Telluride is a success story among Hyundai Motor Group’s overseas strategic models. Telluride maintains steady popularity in North America with its authentic SUV style and reasonable price. Although it was developed exclusively for the North American market, it is also a model frequently requested for launch in South Korea.

Telluride was first launched in 2019, followed by a facelift version in 2022, and the next-generation model is currently scheduled to be launched with a full change. According to recent industry sources, the next-generation model is expected to add a hybrid powertrain to the gasoline-only powertrain.

Prototype production next month
Mass production scheduled to begin at the end of next year

According to an exclusive report by the Korean media Electronic Newspaper on April 3, Kia plans to install a hybrid system for the first time in the next-generation Telluride. It is being developed under the development name LQ2. The plan is to produce the first prototype next month and begin mass production in December 2025 after one year of quality improvement. Official sales are likely in early 2026, later than originally expected.

The existing Telluride is equipped with only a gasoline powertrain. A 3.8L V6 Lambda engine operating on the Atkinson cycle is coupled with an 8-speed automatic transmission, and power is transmitted to the front and four wheels. Based on a maximum output of 295 horsepower and a maximum torque of 36.2kgf.m, it has a towing capacity of 2.3 tons.

Based on 2.5 Gasoline Turbo Engine
Shared with Next Generation Hyundai Palisade

The third-generation platform and hybrid system, the basis for the next-generation model, are shared with the next-generation Hyundai Palisade (development name LX3). Hyundai Motor Group’s compact, mid-size, and large hybrid models, such as Tucson, Sportage, Grandeur, and Carnival, have a 1.6L gasoline turbo engine-based system. It provides ample performance with a combined total output of 230 to 245 horsepower, but its limitations have been pointed out in the recent Carnival and Staria hybrid models.

A hybrid system was added to the Carnival when the facelift version was launched in 2023. Still, it did not receive eco-friendly vehicle certification because the 1.6 turbo hybrid system did not meet fuel efficiency standards. Staria also followed the same process. Accordingly, Hyundai Motor Group is developing a powertrain based on a 2.5L gasoline turbo engine to be installed in high-performance and large vehicles.

Significant Output Improvement Expected
Combined 300 Horsepower Late?

Introducing the 2.5 turbo hybrid is expected to benefit the eco-friendly car certification of new large vehicles. Under South Korean law, if an engine with a displacement of less than 1.6L is installed, it is classified as a mid-size vehicle and must meet a combined fuel efficiency of 14.3km/L (33.6 mpg) to receive eco-friendly car certification. However, vehicles with an engine displacement exceeding 2.0L are classified as large vehicles, and the fuel efficiency standard is lowered to 13.8km/L ( 32.5 mpg). Although it is unlikely that Telluride will be launched in South Korea, the Palisade, which shares its powertrain, will make it easier to obtain eco-friendly vehicle certification.

Expectations are also high in terms of output. This is because the engine generates a peak output of around 300 horsepower. If an electric motor is combined here, the total system output can be expected to be in the mid-to-high 300 horsepower level. Genesis is also considering introducing a hybrid powertrain, which is expected to be applied to the next new car along with a rear-wheel-based design change.