Test drive: 2023 Toyota Highlander Hybrid goes the extra mpg

It turns out three-row crossover SUVs can be efficient, but it seemingly must have a Toyota badge on it.

The 2023 Toyota Highlander Hybrid sets an efficiency benchmark that the three-row SUV competition still can’t hit. Refreshed this year, the Highlander doesn’t look very different, but the V-6 engine option is replaced by a turbo-4. Either engine only gets about 24 mpg combined, which is why the Highlander Hybrid I tested is so much more appealing at 35 mpg combined.  

With a TCC Rating of 6.8 out of 10, the 2023 Toyota Highlander bests most of the competition including the Honda Pilot, which still hasn’t been electrified.

After spending time running the kids to activities and then taking two road trips with the family, I noted some pros and cons of the 2023 Toyota Highlander Hybrid. 

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Pro: Toyota Highlander Hybrid gets good fuel economy

With the V-6 engine gone, the hybrid powertrain in the Highlander shines even brighter as it’s the smoother, quieter, more pleasant option compared to the new turbo-4. The 2.5-liter inline-4 and electric motor combined are rated at 243 hp and 186 lb-ft of torque. More importantly, it has EPA fuel economy ratings of 35 mpg city, 34 highway, and 35 combined. In mixed suburban driving I saw an average of 27.7 mpg, while on a highway road trip of 200 miles with the cruise control set at over 70 mph, the Highlander Hybrid averaged 32.2 mpg. Both were a bit shy of EPA ratings, but speed and outside heat were both factors. 

Whatever the case, no direct competitor comes close. The V-6-powered Honda Pilot with AWD only musters ratings of 19/25/21 mpg. While there is a Ford Explorer Hybrid, its powertrain isn’t smooth and with AWD, it’s only rated at up to 23/26/25 mpg.

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Con: Toyota Highlander’s volume knob is for passengers

The top-spec Limited and Platinum trims (mine was the latter) continue to feature a 12.3-inch touchscreen, but for some inexplicable reason the volume knob has been relocated from the driver side of the center stack to the passenger side. I’m 5-foot-10, and as a driver it’s quite a reach and borderline unreasonable. A volume toggle switch remains on the steering wheel, but you have to click it for every up or down volume change versus just twisting a knob. It’s annoying and two steps backwards.

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Pro: Toyota Highlander features a clean digital gauge cluster

This year, Limited and Platinum models swap the analog gauge cluster for a 12.3-inch digital gauge cluster. The digital cluster features analog-like gauges for both the tachometer and speedometer, but incorporates various functions such as audio source along with average fuel economy neatly into the interface. It’s not creative like the Ford F-150’s digital gauge cluster, which has been spotted in the upcoming 2024 Ford Explorer refresh, but it’s clean and easy to read at a glance.

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Con: Toyota Highlander’s running boards are useless

My $55,647 Platinum model was equipped with the optional $599 running boards. Do not opt for these running boards. Even my 7- and 9-year-old kids immediately complained about the running boards, noting they get in the way of getting in and out of the Highlander. With 8.0 inches of ground clearance, this crossover SUV isn’t that high off the ground, and the running boards make getting in harder. 

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Pro: Toyota Highlander remains easy to live with

While some competitors are moving to the buttonless era, Toyota’s remembered those of us that like simpler things, like buttons, knobs, and toggles. The climate control system features all three of these things and they bring great joy. While the automotive industry seems infatuated with touchscreens and touch-based controls, the ease of use of hard buttons can’t be argued. 

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

2023 Toyota Highlander Hybrid

Con: Toyota Highlander infotainment system can’t split-screen

Unfortunately outside of the volume knob for the passenger, all infotainment controls have been relegated to the screen. Gone are the hard buttons to change media sources. Worse, the previous infotainment screen interface, which was also a 12.3-inch display in Limited and Platinum models, featured a split-screen setup. Apple CarPlay could run alongside various functions such as audio source, climate control, or vehicle info. That’s all gone and been replaced by Toyota’s latest operating system also seen in the Tundra pickup and Sequoia SUV. It’s 12.3 inches of one thing, whether it’s CarPlay, a map, audio source, or vehicle settings. Nobody needs that much CarPlay or maps, and it’s a waste of digital real estate.

The Toyota Highlander Hybrid is (for most people) all the vehicle one needs while setting a fuel economy bar the competition can’t reach.

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2023 Toyota Highlander Hybrid

Base price: $37,635, including $1,335 destination

Price as tested: $55,647

Powertrain: 243-hp hybrid, all-wheel drive

EPA fuel economy: 35/34/35 mpg

The hits: Great fuel economy, easy to live with

The misses: Volume knob placement, useless running boards, infotainment system became less functional