The SUV market has exploded in the last two decades, and it has come to a point where every single automaker needs to produce one, or go out of business. Some have asked other companies to sponsor them – like Suzuki and Toyota – while others have re-categorized their existing models into crossovers and SUVs, like Mitsubishi with their Eclipse.
While normal SUVs are selling by the thousands, luxury SUVs are gaining a better foothold within the industry, with carmakers adding more and more luxurious features to their cheaper SUVs. Most models get leather upholstery and satellite navigation, but many now come with adaptive cruise control and lane-keep assist as standard. These options were usually reserved for only the highest-end models a few years ago, but have become the norm. In addition to the luxury aspect of the spectrum, manufacturers are also adding hybridized drivetrains to capitalize on the rapidly electrifying market. The side effect of their hybrid systems is marginally better fuel economy and even more luxury as the electric motors propel the vehicle along in silence.
Luxury SUVs are nothing new, but adding an electric motor into the mix is a surefire way of gaining some extra customers and adding more luxury. Here are ten of the most fuel-efficient luxury SUVs on the market in 2023.
10 BMW X5 xDrive45e – 50 MPGe
The BMW X5 is a pretty good SUV with enough luxury to keep anyone busy while stuck in traffic and enough off-roading capabilities to survive the winter months. The X5 was the model that popularized the idea of a luxurious SUV for everyday driving.
To get in line with the rest of the class, BMW added a hybrid system to their X5 and called it the xDrive45e. The SUV is powered by a turbocharged inline-6 and an electric motor, which results in a claimed fuel economy of 50 MPGe. In reality, the X5 only gets around 21 MPGe as the battery runs out quite quickly.
9 Bentley Bentayga – 83 MPGe
The Bentley Bentayga is the British marque’s first foray into the world of SUVs. It has recently received a facelift and complete update, which added a new hybrid drivetrain to the line-up. The Bentayga Hybrid features a 3.0-liter twin-turbo V6 with an electric motor to offer better economy.
The Bentayga Hybrid claims an impressive 83 MPGe, but this is in testing with ideal conditions. In the real world, the vehicle barely makes 30 MPGe as it’s quite heavy and due to the plug-in setup, many owners will simply wait for the batteries to charge through driving, greatly impacting fuel economy.
8 Jeep Grand Cherokee 4xe – 56 MPGe
The Jeep Grand Cherokee 4xe is a brand-new addition to the Grand Cherokee range and instead of featuring a throaty V6 or grumbling V8, it has a small 4-cylinder and some hybrid bits to make it into a luxurious and electrified off-roading SUV.
The Grand Cherokee 4xe claims a more attainable 54 MPGe, but thanks to the heft of the vehicle and the small nature of the turbocharged 2.0-liter, the fuel economy suffers dearly as real-world testing only got to about 23 MPGe. Again, the plug-in nature and short electric-only range dampen the fuel gains.
7 Porsche Cayenne S e-Hybrid – 72 MPGe
The Porsche Cayenne is one of the best-selling models the German company makes and basically saved the automaker from bankruptcy. The third generation Cayenne introduced two hybrid models, manifesting in the Cayenne e-Hybrid and Cayenne Turbo S e-Hybrid.
Porsche claims 72 MPGe, but everyone knows the hybrid system is primarily tuned for performance, rather than economy. As such, the actual figure is closer to 25 MPGe, but it can improve through consistent and conservative driving.
6 Mercedes-Benz GLE350e – 31 MPGe
The Mercedes-Benz GLE350e is a hybridized version popular GLE luxury SUV. Unlike the BMW X5, the GLE features a turbocharged 4-cylinder mated to an electric motor to provide smooth, hybrid power. Unfortunately, the 4-cylinder makes more noise when hammering on the throttle.
Mercedes-Benz apparently knows the fuel economy isn’t quite as good as it probably should be, so the claimed fuel economy is just 31 MPGe. In reality, the actual economy is more around the 24 MPGe mark, but it's not as far off as some manufacturers claim.
5 Hyundai Santa Fe Hybrid – 40 MPGe
The Hyundai Santa Fe is technically at the bottom of the proper luxurious SUV list, but it still qualifies thanks to the comfortable ride and soft leather in the interior. It also has most of the same technologies as the more expensive models, making it a bargain.
The Santa Fe Hybrid uses a 1.6-liter turbocharged inline-4 and an electric motor, powering either the front or all four wheels. Hyundai claims around 40 MPGe and the real-world figure is a respectable 32 MPGe – not at all bad for a relatively heavy SUV.
4 Lexus RX 350h+ – 37 MPGe
The current Lexus RX is one of the best new luxury SUVs on the market. Not only is it beautiful and superbly built, but it is also durable and has some pretty good power in the higher trims. It is also probably the most reliable luxury SUV on this list, thanks to the Lexus badge on the front.
The mid-range RX 350h+ is the hybrid to go for as its claimed fuel economy and the real-world figure is pretty much the same, sitting at 36 MPGe. Yes, the RX 500h produces an impressive 374 hp, but it's not as efficient as the 350h+.
3 Volvo XC90 T8 – 85 MPGe
The current Volvo XC90 has been on the market now for eight years, but Volvo has done an admirable job keeping it fresh and updated over the years. Thanks to the simplistic, yet minimalist styling, it still looks good even today.
The top-of-the-range XC90 T8 is the model to go for as it has a twin-charged 4-cylinder engine mated to an electric motor, producing a combined 400 hp. It also claims a fuel economy rating of 85 MPGe, but the true figure is around 38 MPGe – still wholly remarkable for a big, heavy luxury SUV.
2 Range Rover P510e – 74 MPGe
The new Range Rover is out and with it came updated and new versions of its previous generation’s trims. Gone is the 4-cylinder hybrid P400e trim, which is instead replaced with a 6-cylinder in the P440e and P510e trims, which produce more power and get better fuel economy.
The P440e is great, but the P510 trim is 20 hp off the big V8, all while getting substantially better fuel economy. The real-world figure is around 40 MPGe as the engine and motor doesn’t need to work as hard, compared to the 74 MPGe claimed figure. It is massively luxurious and expensive though.
1 Audi Q7 60 TFSI e – 84 MPGe
The Audi Q7 isn’t the prettiest of the luxury SUVs, but it does a good job of staying relevant. The top-spec hybrid is the Q7 60 TFSI e-trim, which is basically the same car underneath as the Bentley Bentayga Hybrid and Porsche Cayenne e-Hybrid – but with better real-world economy.
The Q7 60 TFSI e sees a claimed economy of 84 MPGe – a bit lofty for such a vehicle, but the actual figure is still a respectable 40 MPGe when not hooning it down a straight road. It is also cheaper than its fancier siblings and has more cargo space. What’s not to like?
Sources: BMW, Audi, Mercedes-Benz, Bentley, Stellantis, Toyota, Land Rover, Hyundai, Consumer Reports,