Volkswagen Atlas vs Toyota Grand Highlander Hybrid

The 2026 Toyota Grand Highlander Hybrid was a versatile SUV that offered a range of powertrains, including a turbocharged gas engine, a fuel-efficient hybrid, and a robust Hybrid Max configuration with 362 horsepower and full-time all-wheel drive. The Grand Highlander was available in several trims, from the base LE to the luxurious Platinum, with prices ranging from $43,855 to $61,770. The top-tier Hybrid Max Platinum trim, which we reviewed, featured a Storm Cloud paint finish and a straightforward interior design reminiscent of the popular RAV4. While the interior emphasized functionality with logically arranged controls and decent material quality, it lacked some refinement due to the use of glossy hard plastics and unlined storage areas. The climate system was user-friendly, but the infotainment interface had room for improvement, particularly with its small volume knob and lack of a tuning knob.

In contrast, the 2027 Volkswagen Atlas presented a more stylish and refined appearance, with a redesign that maintained its attractive profile. The Atlas featured a high character line, flared wheel arches, and cascading taillights, although the front design with stacked headlights and a large VW badge was less appealing compared to its predecessor. The interior of the Atlas was a significant upgrade, offering real wood accents, leatherette or leather upholstery, and a choice of ambient lighting colors. The cabin felt more upscale than its price suggested, with a focus on comfort and luxury. The Atlas also provided a spacious and accommodating interior, with supportive front seats, ample second-row legroom, and a genuinely adult-friendly third row. Cargo space was generous, with 21.2 cubic feet behind the third row and up to 95.4 cubic feet with all seats folded.

The 2026 Toyota Grand Highlander Hybrid Max was designed for performance, featuring a turbocharged 2.4-liter four-cylinder engine paired with electronic full-time AWD and two electric motors, delivering a total of 362 horsepower. This setup allowed the Grand Highlander to accelerate swiftly, with a traditional six-speed automatic transmission that avoided the droning typical of CVTs. However, the Hybrid Max's fuel economy was lower than the standard hybrid, achieving 27 mpg combined compared to the hybrid's 36 mpg. During testing, the Hybrid Max averaged 23.3 mpg on a mountainous route and 26 mpg on a level city-highway mix. The SUV offered a smooth and comfortable ride, although it exhibited some vertical and lateral movement on uneven surfaces. Handling was secure but limited, with early tire squeal and understeer when pushed hard. Visibility was excellent, aided by a comprehensive camera system, though the front camera's frequent screen takeovers were a minor annoyance.

The 2027 Volkswagen Atlas featured an updated EA888 engine producing 282 horsepower, a 13-horsepower increase from the previous model, though torque decreased to 258 pound-feet. Despite the reduced torque, the Atlas remained responsive, with a light touch on the accelerator propelling it forward. The eight-speed automatic transmission provided smooth shifts, and the Atlas handled well, with precise steering and a ride quality that improved significantly over the previous model. The Atlas achieved 25 mpg combined with FWD and 23 mpg with AWD, showing a two-mpg improvement. During testing, the AWD model returned 22 mpg over 133 mostly highway miles. The Atlas also offered a 5,000-pound tow rating, except for the SE trim, which required an aftermarket hitch for towing.

The 2026 Toyota Grand Highlander Hybrid provided comfortable seating for up to eight passengers, with nearly 100 cubic feet of maximum cargo space. The Platinum trim featured a Portobello interior with leather and artificial suede upholstery, heated and ventilated front and second-row seats, and second-row captain's chairs with a removable center console. The third row was reasonably comfortable for adults, and the Grand Highlander offered 20.6 cubic feet of cargo space behind the third row, expanding to 97.5 cubic feet with all seats folded. However, the lack of underfloor storage and unlined storage areas detracted from its overall score.

The 2027 Volkswagen Atlas continued to be one of the roomiest SUVs in its class, with firm and supportive front seats, ample second-row legroom, and a genuinely adult-friendly third row. The R-Line trims added memory and thigh support for the driver, and the SEL Premium R-Line included massage functions for the front seats. The second row offered heated and ventilated outboard seats, and the third row provided 34.1 inches of legroom. Cargo space was generous, with 21.2 cubic feet behind the third row and up to 95.4 cubic feet with all seats folded. Standard features included a hands-free power liftgate, second-row sunshades, and dual cargo-area lights.

The 2026 Toyota Grand Highlander Hybrid came equipped with a 12.3-inch touchscreen infotainment system across all trims, with a 12.3-inch digital instrumentation panel available on higher trims. The system supported wireless Apple CarPlay, Android Auto, SiriusXM, and various Toyota Connected Services. While the infotainment system was user-friendly, it lacked the ability to display multiple main-menu screens simultaneously, and the low-contrast font could be difficult to read. The Platinum trim included a head-up display, digital rear-view mirror, and JBL premium audio system.

The 2027 Volkswagen Atlas featured a 15-inch touchscreen on all trims except the base SE, which had a 12.9-inch unit. The system was responsive, with a 10.25-inch digital gauge cluster and a head-up display on R-Line trims. However, the reliance on touchscreen controls for many functions required multiple taps, and the climate and volume sliders lacked haptic feedback. The Atlas offered generous device charging options, with two Qi2 wireless pads and seven USB-C ports. A nine-speaker stereo was standard, with a 14-speaker Harman Kardon system on the SEL Premium R-Line. Some features required a subscription, including Premium Navigation and a ChatGPT-powered voice assistant.

The 2026 Toyota Grand Highlander Hybrid was equipped with Toyota Safety Sense 3.0, which included a comprehensive suite of safety features and driver-assistance technologies. The system offered lane-keep assist, adaptive cruise control, and Proactive Driving Assist, though the latter was found to be irritating in some situations. The Grand Highlander received a five-star overall rating from the NHTSA but fell short of the IIHS Top Safety Pick due to "Acceptable" ratings for headlight performance and small overlap frontal-impact protection.

The 2027 Volkswagen Atlas had not yet been crash-tested by the IIHS or NHTSA at the time of writing. However, the previous model received high safety ratings. The Atlas came standard with VW's IQ.Drive suite, which included automatic emergency braking, blind-spot monitors, rear cross-traffic alert, lane-keep assist, and adaptive cruise control. The new Emergency Assist Plus feature could steer the vehicle to safety if the driver became unresponsive. The Atlas also included a front center airbag, front and rear parking sensors, and safe-exit assist.