2027 Kia Telluride Hybrid vs. Volkswagen Atlas Comparison Test: Battle of the Plus-Size Midsizers

If you’re in the market for a mainstream midsize three-row family SUV, there’s no shortage of spacious and tech-forward options out there, with all manner of motivational choices available. Two of the latest and greatest are the much anticipated 2027 Kia Telluride Hybrid and Volkswagen’s brand-new, second-generation 2027 Volkswagen Atlas. Serendipitous? It is for us, as we now get to compare the two to see which is the most fitting for the family on the go.

Powertrains and Performance

We’ve been saying it for the past few years: The Telluride needed a hybrid option, and now it finally has one, with more power and better efficiency than the gas-only model. Now, from its hybridized powertrain with a 2.5-liter turbo-four at its core, the popular SUV produces 329 hp and 339 lb-ft of torque, with efficiency at a respectable-for-its-size 30/32/31 mpg city/highway/combined.

Beyond what’s in the engine bay, the new Telluride arrives with more geometric looks and increased dimensions. It already looked good before, and now it looks even better.

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Although it doesn’t offer a hybrid at present, the new VW Atlas still delivers an extremely spacious, swallow-it-all experience for passengers and cargo. (A hybrid version of the Atlas is coming.) Wearing a handsome new exterior design, the Atlas still manages to look quintessentially Volkswagen, making tidy use of clean, horizontal lines.

Its massaged EA888 2.0-liter turbo-four is now rated at 282 hp and 258 lb-ft of torque. Fuel efficiency has only slightly improved from 2026, now at 20/27/23 mpg city/highway/combined.

Predictably given its power advantage, in every acceleration test the Telluride Hybrid bested the Atlas. However, the Atlas stopped shorter from 60 mph (123 feet) than the Telluride (128 feet). The Kia is about 250 pounds heavier than the Atlas, and we’re sure the tires had something to do with braking performance, but it also seemed to us like the VW’s brakes performed slightly better as a whole in a panic-stopping situation.

Daily Driving Duties

Both of our test SUVs came equipped with all-wheel drive, which usually sacrifices fuel economy for better traction in adverse conditions. (Kia and VW also offer less expensive and more efficient front-wheel drive models.)

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The Kia drives with a substantialness that fits with its newly squared-off design language. The steering is heavy but doesn’t require too much effort, and the wheel feels good in the hand. While the powertrain’s electric motors don’t provide a huge initial shove off the line, the assist feels usable and seamless once you get moving. The absence of an engine noisily straining under acceleration adds refinement to the Telluride that’s missing in the non-hybrid versions. Feeling stronger through middle and upper parts of the powerband, the powertrain makes passing and merging on the highway effortless.

The soft brake-pedal feel is easy to modulate, though there’s not much bite at first. Kia’s Highway Driving Assist II driver assist feature continues to shine and now can perform automated lane changes after the driver activates the turn signal. Added with the comfortable ride and good cabin insulation that mutes most of the tire and wind noise, the Telluride continues to punch above its weight.

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This all becomes very stark against the Atlas, where an unremarkable driving experience appears to be the modus operandi here. It’s not doggedly slow, but it isn’t particularly powerful, either, and the four-cylinder drone permeating the cabin while under load gives the impression it’s working quite hard to get the big body moving. Although its braking is stronger than the Telluride in testing, the long-travel and squishy brake pedal doesn’t offer much feel, and the steering remains vague, offering little connection between the driver and the road.

But the skinny steering wheel brings a glimmer of athleticism to the Atlas. Driving harder on a curvy road can be amusing, as the SUV rides its own momentum well. There’s a sense of Golfishness to it all that feels like the Atlas’ own little secret, as we’re pretty certain most owners wouldn’t be driving like this.

Interior Space

Upmarket interiors for a lower price are part of what Tellurides have built their reputation on, and this top-grade X-Line SX Prestige test SUV didn’t disappoint. (Check out our interior review here.) Despite the extensive use of plastic and vinyl, these were dressed and textured in such a way that they looked and felt extremely elevated. Everywhere that you rest your arm or elbows you’ll find soft-touch material, and the mesh-textured headrests are cool and futuristic.

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The entire dashboard and center console work as a cohesive piece. A low cowl means great visibility over the hood, and the wraparound driver and infotainment screen are positioned further down so as not to be too distracting. There’s also a good mix of touchscreen and physical controls for vital functions, which is always appreciated.

The center console includes many practical touches, such as dual wireless phone chargers ahead of a generous catch-all cubby with two fold-out cupholders. This is all flanked by two grab rails on either side. All in all, it’s a very well-considered area because it provides the flexibility to store many kinds of loose items rather than just drinks.

The Telluride’s second-row captain’s chairs are roomy, with their cupholders as part of the front center console, leaving the central aisle clear. The captain’s chairs seem to be spring-loaded, and they tilt and slide forward manually, leaving decent room to access the third row.

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The third row’s three across bench is the Telluride’s most compromised seating area. The backrests are rather upright; the seat cushioning is thin, and there’s very little under-thigh support. Outboard passengers also don’t get any elbow cushioning, just hard plastic. As is this case with many other three-row SUVs, these seats are there for smaller passengers or emergencies, and not regular adult occupancy.

When it comes to the inside of the Atlas, its central screen is a lot bigger, but it also comes at the cost of basically any hard buttons. Instead, there’s a large, multifunction dial that controls volume, drive modes, and ambient lighting themes. But climate adjustments are performed via a touch bar at the bottom of the screen. We found it distracting and frustrating to use, but we could see an owner getting used to it. (A counterpoint: Why should an owner get used to such a poor setup?)

We appreciate the thin strips of wood found in the top-grade Atlas SEL Premium R-Line’s cabin and wish there were more of it. Front seats are extremely comfortable and supportive, with nice materials throughout. It’s clear that VW is positioning the Atlas as a near-premium SUV (the Premium in the name is a clue), as the test model came with massaging seats.

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It also came with a second-row bench, that we found to be just as spacious and comfortable as the front seats. In the past, Atlas seat cushions have been on the thin side, so we’re happy to feel an improvement here. There’s a ton of legroom in the second row, and the big windows let in lots of light. Heated and ventilated outboard seats will be a treat for those passengers. But we didn’t see any easily accessible cupholders except for the ones in the fold-down center armrest.

The bench can slide on rails and can perform a 60/40 split fold, but they’re deceptively heavy; this is the only way to get into the third row. Only two seats can be found back there, but they’re wider and more comfortable than what the Telluride offers. If the second-row seat backs are reclined at all, though, they can intrude on third-row knee space, and any passengers taller than 6 feet will probably brush against the headliner.

Overall, the Telluride wows with a more visually interesting and quality cabin, but the Atlas feels bigger in every way, especially in the second and third rows. We anticipate car seats fit easily into that second-row bench, for example. Cargo space favors the Atlas when the third and second rows are folded.

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How Much? And for What?

Families could make better use of the spaciousness the Atlas provides, and tech-minded buyers might find its larger central touchscreen more to their liking. Nappa leather covers the front row and outboard rear seats, which is notable at this price point. But for those who prioritize power, fuel economy, second-row comfort, and a more comprehensive camera suite and parking technology, the Telluride is the more obvious choice and the victor in this comparison. The Kia also offers better warranty coverage: 10 years/100,000 miles against four years/50,000 miles for the Atlas.

There’s a roughly $3,000 price difference between the final MSRPs of these two SUVs as equipped, with the Telluride being the more expensive of the pair. However, we’d still go with it over the Atlas. For one, it’s better to drive, and its powertrain feels much newer. For another, it will theoretically break even with the Atlas one day in fuel savings. Looking at it another way: The Atlas’ roomy interior may make sense now, but the Telluride’s efficiency will continue to serve after the kids have moved out.

Finally, there’s no rule anywhere saying you have to get the X-Line SX Prestige with AWD. A more affordable base front-drive version exists in the Telluride Hybrid EX FWD for $48,035, and fuel economy for that rises to 32/34/33 mpg city/highway/combined. You still get the great powertrain, just fewer creature comforts. For the practical buyer, that’s a trade-off many will be willing to make.

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2nd Place: 2027 Volkswagen Atlas

Verdict: The Atlas will handily fit nearly everything and everyone that needs a ride, but its powertrain makes this all-new SUV already feel dated.

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1st Place: 2027 Kia Telluride Hybrid

Verdict: Now with the hybrid powertrain it was always meant to have, the award-winning Telluride gains even more refinement than before.