Luxury cars continue to become less accessible in the U.S. market. There are many reasons for this, some of which include more expensive development and distribution costs, driving up pricing for new cars across the board. Brands have also identified that luxury products yield higher profit margins, resulting in them adopting much higher MSRPs compared to their production costs.
Many new-car buyers are demanding luxury, resulting in conventional mass market brands investing more time and resources into making formerly mundane sedan and SUV offerings that feel more special and upmarket. For 2027, there’s one Japanese SUV that’s benefiting from a comprehensive remodel that focuses more on being luxurious, without having an expensive price tag attached to it.
The Current State Of The Luxury Car Market
The luxury car market in the United States currently reflects a high-stakes transition toward electrification and software-defined luxury, with traditional heavyweights and new entrants competing for dominance. As of March 2026, BMW, Lexus, and Mercedes-Benz continue to lead the sales charts, with BMW maintaining a slim edge in total volume while Lexus sees strong growth through its hybrid-heavy lineup. The most popular models today are almost exclusively luxury crossovers and SUVs, specifically the Tesla Model Y, Lexus RX, and BMW X5, which have largely displaced the mid-sized sedans that once defined the segment.
Over the last 20 years, the market has evolved from a hierarchy based on mechanical prestige and displacement to one defined by digital ecosystems, driver-assistance technology, and sustainable powertrains. The early 2000s were characterized by the likes of BMW, Mercedes, and Audi, and the rise of Japanese luxury through high-reliability offerings. This contemporary landscape has now shifted toward silent and high-torque electric motors and expansive digital interfaces. Brands like Tesla and Cadillac are using this strategy to reclaim significant market share by leaning into bold styling and cutting-edge software integration.
Toyota’s Refined SUV Catalog
Over the last decade, Toyota has strategically elevated its SUV lineup to capture a more premium segment of the market by transitioning to a unified global architecture that prioritizes structural rigidity and refined driving dynamics. This foundational shift allowed engineers to lower the center of gravity and adopt more sophisticated suspension geometries, resulting in a high-quality drive feel that bridges the gap between mass-market utility and luxury-tier composure.
To complement these mechanical gains, the brand has aggressively overhauled its interior philosophy, replacing utilitarian plastics with soft-touch materials, brushed aluminum accents, and leather-wrapped touchpoints while standardizing advanced digital cockpits and larger high-definition infotainment displays. By integrating comprehensive suites of active safety technology and luxury-leaning features like panoramic sunroofs, multi-zone climate control, and ventilated seating, Toyota has repositioned its SUVs as sophisticated lifestyle vehicles that offer a level of refinement and technological depth previously reserved for dedicated prestige brands.
2027 Toyota Highlander Interior And Exterior Picture Gallery
The 2027 Toyota Highlander goes fully electric as the brand’s first three-row BEV for the U.S., offering up to 320 miles of range and seven seats.
The 2027 Highlander Reinvents Affordable Luxury
The 2027 Toyota Highlander undergoes a radical exterior transformation from the 2026 Toyota Highlander to match its new electric identity. This includes the adoption of the brand’s hammerhead front fascia characterized by a closed-off grille and slim, full-width LED lighting. The vehicle’s silhouette is notably sleeker and more planted than the 2026 model. Key dimensional changes include a roofline that sits nearly an inch lower, a width increased by over two inches, and an 8.0-inch wheelbase extension that pushes the wheels further toward the corners.
Aerodynamics are heavily prioritized through the introduction of semi-flush door handles and new wheel designs, ranging from 19-inch alloys with full aerodynamic caps on the XLE to massive 22-inch alloy wheels on the Premium and Limited trims. The 2027 color palette introduces sophisticated new shades like Everest, Spellbound, and Reservoir Blue, while also offering modern two-tone configurations such as Wind Chill Pearl or Heavy Metal paired with a contrasting Midnight Black roof.
A Digital-Focused Premium Cabin
The 2027 Toyota Highlander’s interior undergoes a significant shift toward the premium market by adopting a panoramic glass dash that merges a 12.3-inch driver display with a standard 14-inch infotainment touchscreen into a single digital interface. An 8.1-inch increase in wheelbase over the previous model provides a third row that accommodates full-sized adults, complemented by a new L-finesse motorized seating system for effortless one-touch access.
Toyota elevates material quality through an extensive use of SofTex upholstery and soft-touch surfaces across the dash and doors, while the center console is redesigned with synthetic-suede-lined dual wireless charging pads and a wider storage shelf. To further distinguish it from the 2026 model, the 2027 version introduces a 64-color ambient lighting system that integrates with safety alerts. It also features the largest glass panoramic roof that Toyota has ever fitted to a vehicle. Joining this is an enhanced acoustic glass applied throughout the cabin to ensure a more refined and quieter electric driving experience.
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Larger Interior Dimensions For All To Enjoy
The 2027 Toyota Highlander sees a dramatic increase in interior volume thanks to the adoption of an all-electric drivetrain. The most noteworthy improvement is an 8.1-inch wheelbase extension that brings the total measurement to 120.1 inches, effectively outstretching even the larger Grand Highlander. While the overall vehicle height is slightly lower by nearly an inch to improve aerodynamics, the electric platform’s flat floor allows for a third row that provides 1.5 inches of additional legroom and 1.0 inch of extra headroom compared to the 2026 model.
This shift effectively reclassifies the Highlander from a tight three-row model to a proper adult-carrying SUV, with cargo capacity also benefiting from the redesign. Space behind the third row increases from 16 to 18.5 cubic feet, while the maximum cargo volume with all seats folded expands to roughly 87.5 cubic feet. These dimensional gains mean that while the Highlander remains smaller than the Grand Highlander in total length, its interior packaging offers a superior wheelbase-to-cabin ratio that significantly narrows the gap in passenger comfort.
Two Capable Motor Configurations
The 2027 Toyota Highlander evolves into a fully electric SUV, marking a radical departure from its predecessor by outright abandoning internal combustion engines. For the new model, you’re only going to have access to two variations of a standard battery-electric powertrain. The front-wheel-drive XLE trim serves as the entry point, featuring a single electric motor that produces 221 horsepower and 198 pound-feet of torque. If you are seeking more capability, the dual-motor electronic all-wheel-drive system increases total output to 338 combined horsepower and 323 pound-feet of torque.
Because these electric motors drive the axles directly, the conventional eight-speed automatic found in previous models has been replaced by a single-speed direct-drive transmission. This new mechanical layout also introduces vehicle-to-load technology, allowing the Highlander to act as a mobile power source, and includes a standard heat pump to maintain efficiency in colder climates.
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Capable And Accommodating Battery Options
The 2027 Toyota Highlander features two distinct battery capacity options, depending on your drivetrain choice, with the goal of meeting different family needs. The standard 77.0-kWh battery provides a manufacturer-estimated range of 287 miles in front-wheel-drive configurations, which drops to 270 miles when equipped with the dual-motor all-wheel-drive system. If you want to improve on this figure, you can upgrade to the larger 95.8-kWh battery, which is on the Limited and optional on the XLE all-wheel drive.
Doing so boosts the estimated driving range to a more appropriate 320 miles. Charging convenience is significantly improved via a standard NACS port, granting direct access to the Tesla Supercharger network. When using a DC fast charger, both batteries will replenish from 10 percent to 80 percent in about 30 minutes under ideal conditions. For home charging, the integrated 11-kW onboard charger allows for a full replenishment in about seven hours for the smaller pack or nine hours for the larger one when connected to a 240-volt level two station.
Competitive Estimated Pricing
Toyota is expected to introduce the all-new, all-electric 2027 Highlander to the American market early next year, with official production likely to commence at its Kentucky manufacturing hub by the end of this year. Toyota still needs to finalize official MSRP figures, but key industry analysts, including Edmunds and Car and Driver, estimate a starting price of approximately $48,000 for the entry-level XLE single motor trim, representing a premium over the current hybrid model to account for the new battery architecture. This isn’t necessarily an affordable SUV, but when you look at what the brand includes as standard, it’s hard not to consider this competitively priced.
Stepping up to the XLE all-wheel drive is projected to cost around $51,500, while the larger-battery Limited dual-motor trim is expected to command a price tag closer to $57,000. These estimates suggest Toyota is positioning the Highlander EV to remain competitive against three-row rivals like the $54,900 Kia EV9, while the existing Grand Highlander remains the primary option for those seeking a larger, gas-powered or hybrid alternative at a similar price point.
Sources: Edmunds and Car and Driver