SUVs and fuel efficiency don’t always go hand in hand. However, one standout Japanese model offers impressive fuel savings while also featuring three rows of seating.

This will be music to the ears of growing families, especially those constantly on the go. There’s no underestimating the importance ofa spacious SUV with flexible seating and cargowhen your days consist of hauling kids to school or activities, packing up for a weekend away, or tackling a week’s worth of errands in one foul sweep.

Full view of a black 2025 Toyota Grand Highlander driving.

Generally speaking, the larger the SUV, the more it costs to fill—but that’s where hybrid technology comes in. There are only a handful of three-row hybrid SUVs to choose from, though, and they all come from the same automaker, although one stands out for its combination of space and fuel-cost savings,

The data used to compile this article was sourced from Toyota and other authoritative sources, including the EPA, to give you the most up-to-date and accurate information possible.

Full view of a red 2025 Toyota Grand Highlander parked sideways across a road.

The 2025 Toyota Grand Highlander Hybrid Offers The Best Fuel Cost Savings Among Three-Row Japanese SUVs

SUVs are not often as spacious as the 2025 Toyota Grand Highlander Hybrid. This three-row SUV is perfect for families needing space for all their belongings, and it doesn’t sacrifice efficiency, which is a huge bonus.

The Grand Highlander Hybrid has everything we love about the standard Highlander but adds more passenger and cargo space. Blended with practicality is Toyota’s proven hybrid technology for long-range efficiency.

Side profile of a black 2025 Toyota Grand Highlander.

According to EPA formulas, the 2025 Toyota Grand Highlander Hybrid uses around $1,300 per year on gasoline, which will save owners $350 annually compared to the $1,650 yearly fuel costs of the average new ICE vehicle. Tally that up over time, and you have a more cost-effective choice for long-term ownership than the non-hybrid Highlander variant.

The 2025 Toyota Grand Highlander Hybrid Is Perfect For Families

For the average family, daily life consists of juggling school drop-offs, grocery runs, and weekend activities, all of which require plenty of passenger and cargo space. That’s where a three-row SUV like the Toyota Grand Highlander Hybrid comes in handy, as it offers enough space for the kids, car seats, sports gear, and shopping bags.

Typically, larger SUVs mean higher fuel costs, but thanks to hybrid technology, that’s not the case. Hybrid SUVs combine a fuel-efficient gas engine with electric power to deliver better mileage without sacrificing size or capability. This makes them more practical for families, as they get the best of both worlds—spacious, versatile transportation with lower running costs.

The Growth Of The Toyota Grand Highlander

Japanese automakers are synonymous with producing small, more fuel-efficient vehicles like theHonda CR-VandToyota RAV4of the mid-1990s. But as demand for larger SUVs grew, Japanese brands—particularly Toyota—expanded their offerings.

For quite some time now, Toyota has experimented with third-row seating in several of its models, including the third-generation RAV4 (2005-2011) and the Lexus RX, before settling on the Toyota Highlander (2004). 20 years later, it has created the longer and roomier Grand Highlander.

The 2025 Toyota Grand Highlander Hybrid—One Step Up On The Highlander Hybrid

Developed for 2023, the Toyota Grand Highlander was the solution to the growing demand for three-row SUVs. It offers more space than the standard Highlander without going full-size truck, like the Toyota Sequoia. That’s not to say that the standard Highlander hasn’t been a popular choice since its introduction at the turn of the century, but its third-row was often criticized for its lack of practical passenger space.

The Grand Highlander offers improved third-row comfort and expanded cargo space compared to its Highlander sibling. Toyota created a fuel-efficient three-row SUV by stretching the Highlander Hybrid’s platform. Further, the Grand Highlander maintains a more manageable footprint than three-row SUV competitors like the Dodge Durango andVolkswagen Atlas.

2.5-liter I-4 or 2.4-liter turbo I-4 + 2 electric motors

2.5-liter I-4 + 3 electric motors

Continuously variable or 6-speed automatic

Continuously variable

245–362 hp

243 hp

175–400 lb-ft

175 lb-ft

Front or all-wheel drive

All-wheel drive

464–619 miles

598–616 miles

26–37 mpg

35–36 mpg

27–34 mpg

34–35 mpg

27–36 mpg

$1,300–$1,750

$1,300–$1,350

$1,500–$1,750 (2.4T costs $500 over average)

$1,500–$1,750

Seven or eight

149–153.3 cubic feet

136.3–139.5 cubic feet

97.5 cubic feet

84.3 cubic feet

57.9 cubic feet

48.4 cubic feet

20.6 cubic feet

16 cubic feet

$45,380–$58,775

$46,020–$53,675

Despite sharing the same 2.5-liter hybrid powertrain, the Toyota Grand Highlander boasts significantly more passenger and cargo space than the standard Highlander Hybrid while also gaining access to the i-FORCE MAX system. The Grand Highlander is 6.5 inches longer, with a 4-inch increase in wheelbase, which translates into more space behind the middle seats.

3.5-liter turbo V-6 + electric motor

10-speed automatic

437 hp

583 lb-ft

Rear- or four-wheel drive

450-495 miles

19–21 mpg

22–24 mpg

20–22 mpg

$2,100–$2,350

$2,250–$3,500 more than average

157 cubic feet

86.9 cubic feet

49 cubic feet

11.5–22.3 cubic feet

$62,425–$83,915

Another of only four Japanese three-row SUVs (all Toyotas), the 2025 Toyota Sequoia has a self-charging hybrid powertrain, but its size and performance come with trade-offs. Unlike the Highlander and Grand Highlander Hybrids, the Sequoia is a full-size, truck-based, body-on-frame SUV, making it less fuel-efficient, though it delivers the towing capacity some families require.

The 2025 Toyota Grand Highlander Proves You Don’t Need Stump-Pulling Power

As previously mentioned, Toyota’s decision to create the Grand Highlander as an elongated version of the Highlander was driven by growing demand for larger SUVs that balance space, efficiency, and practicality. At the time, this meant larger, more powerful, costlier, and less fuel-conscious SUVs like the Sequoia.

While Toyota has more powerful hybrid powertrains, like the i-FORCE MAX in the Sequoia, the automaker chose to power the lighter-weight Grand Highlander—which likely doesn’t need the pulling power of the Sequoia—with a 2.5-liter I-4 to maximize efficiency while trying not to alter the vehicle dynamics too much from the non-hybrid Grand Highlander.

2.4-liter turbo I-4

8-speed automatic

265 hp

310 lb-ft

392–427 miles

27–37 mpg

20–21 mpg

26–28 mpg

$1,950–2,100

$1,500–$2,250 more than average

$39,520–$51,925

Under the hood of the 2025 Toyota Grand Highlander Hybrid lies a 2.5-liter four-cylinder Atkinson-cycle powertrain, which prioritizes fuel efficiency over raw power. That’s not to say it’s underpowered, as it offers adequate performance for family driving, but its main purpose is to deliver lower fuel costs and affordability.

In comparison to the ICE Grand Highlander, which features a turbocharged 2.4-liter engine (hybridized in the top-tier Grand Highlander Hybrid), the hybrid offers considerably better mileage and exceptional long-term savings.

550h+ Luxury

2.4-liter turbo I-4 + 2 electric motors

3.5-liter turbo V-6 + 3 electric motors

366 hp

404 hp

406 lb-ft

317-lb-ft

481 miles

Not yet rated

27 mpg

28 mpg

$2,200

$2,750 more than the average vehicle

$70,010–$73,160

$78,560

The 2025 Lexus TX offers buyers the choice of efficiency or performance with both hybrid and plug-in hybrid (PHEV) powertrains. While the PHEV provides an estimated all-electric driving range of 33 miles, it’s not enough to offset the added cost of purchasing it. Plus, research shows many owners rarely plug their PHEVs in.

The 2025 Toyota Grand Highlander Hybrid Outshines Family Rivals As The Top Fuel-Efficient Three-Row Japanese Hybrid SUV

So, there you have it—the 2025 Toyota Grand Highlander Hybrid stands out as the top choice among three-row, self-charging hybrid Japanese SUVs. It delivers the same five-year fuel cost savings as the smaller Highlander Hybrid and offers substantially more interior space and versatility, making it the perfect choice for families seeking space and savings.

As previously mentioned, there are only four three-row self-charging hybrid models in the Japanese hybrid SUV segment, and they’re all built by Toyota: the Highlander Hybrid, Grand Highlander Hybrid, Sequoia Hybrid, and Lexus TX 500h. Other Japanese automakers have instead embraced PHEVs, like Mazda and Mitsubishi, or focused on smaller self-charging hybrids, such as Honda and Subaru.

For the foreseeable future, self-charging hybrid SUVs will continue to serve ascost-effective alternatives to fully electric models, especially for buyers prioritizing fuel efficiency without charging routines. But when it comes to meeting families' interior-space requirements, you’ll be hard-pressed to find a better SUV hailing from Japan than the Toyota Grand Highlander Hybrid.