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Noting that it was the first such event in the magazine's 45-year history, he criticised the vehicle's stability system stating that "Deficiencies in the Kluger's ESP contributed to the crash". Six of the seven other judges also stated that they felt "the vehicle's ESP performance was sub-standard", and remarked that the vehicle was "almost dangerous on dirt [roads]". In a written response, Toyota disputed the circumstances of the accident and criticised the testing procedures as "unscientific".[30][31]

The Hybrid features Toyota's Hybrid Synergy Drive which continues to allow an electric only powered mode for short distances and speeds. Weight and cost have been improved over the previous hybrid.[32][33]

The expanded size and new features have led to an increase of 500 pounds to its curb weight. All Highlander Hybrids are all-wheel drive, and the EPA has rated the hybrid at 8.7 L/100 km; 32 mpg‑imp (27 mpg‑US) for the city and 9.4 L/100 km; 30 mpg‑imp (25 mpg‑US) for the highway,[34] same as the previous model. The Highlander's fuel economy, while better than the Lexus RX 400h's, lags behind the compact 4cyl Ford Escape Hybrid, which ceased production in 2012, and the latest RX 450h, but still produces significantly fewer emissions than the non-hybrid version with a CARB SULEV rating.

The Highlander Hybrid continues to use the same 3.3-liter 3MZ-FE V6 (208 hp[clarification needed]) offered in AWD from the prior model, net power is 175 kW (235 hp). VDIM and Electronically Controlled Brake remain new features include a driver selectable electric only EV mode (when possible) and another ECON mode which restricts acceleration and minimizes air conditioning during acceleration.[citation needed] The Highlander Hybrid Hybrid uses a 1.9 kWh sealed nickel-metal hydride traction battery.[35]

For the 2011 model year the Highlander Hybrid received styling changes and was upgraded with the 3.5-liter 2GR-FXE V6 (245 hp), increasing net power by 7 kW (10 hp), and a powertrain similar to the RX450h. The vehicle is now rated at 8 L/100 km; 34 mpg‑imp (28 mpg‑US) for the city, highway and combined cycles.

The Highland FCHV was a test vehicle using compressed hydrogen gas, with average fuel economy of 109.9 km/kg (68.3 miles per kilogram) (approximate mpg equivalent).[36]

The vehicle was unveiled at the 2007 LA Auto Show.[37]

The Chinese version of the Highlander (ASU40/GSU45) was unveiled in 2009 at the 13th Shanghai International Automobile Industry Exhibition.[38]

On 27 March 2013, Toyota unveiled the third generation XU50 series Highlander at the New York International Auto Show, with plans to have the vehicle reach dealerships in early 2014. Production began on 5 December.[39] This version is longer and wider than the outgoing generation and its design has changed from its boxy look to one that is similar to other mid-size crossover SUVs.

In addition to the changes, this one will feature seating for eight people with a sliding second-row point of entry that gives it 4.3 inches of added width space, soft-touch materials on the instrument panel, lane-departure warning, pre-collision warning and blind spot monitoring systems. HD Radio and Bluetooth will become a standard on all trims for the US version, which will also come equipped with Toyota's Entune multimedia system along with a 6.1-inch touchscreen display audio system. An eight-inch touchscreen system and Toyota's Entune app suite with 12 JBL speakers will be offered as an optional feature. The three powertrain trims that will be offered include a 2.7-liter, six-speed automatic, front-wheel drive base model, a 3.5-liter, six-speed automatic model in both front- or all-wheel drive, and the AWD-only Hybrid trim with a 3.5-liter V6 mated to an eCVT.[41][42]

The Highlander is also approved for use as a New York City taxicab.[43]

A refreshed 2017 model year Highlander appeared at the New York International Auto Show in March 2016 with sales starting in the fourth quarter of 2016.[44] In V6 powered models, an eight-speed automatic replaced the six-speeder and the revised V6 engine (now designated 2GR-FKS) added Toyota's D4-S direct injection fuel system.[45][46] The new Highlander has a new fascia with restyled headlights and taillights, new SE grade, and XLE and LE Hybrid grades plus new exterior and interior colors.[47]

The fourth generation Highlander was unveiled at the New York International Auto Show on 17 April 2019. It is built on GA-K platform.[51][52][53][54][55] It is offered in five model grades which include the L, LE, XLE, Limited and Platinum.