BMW X5 vs Toyota Grand Highlander Hybrid

The 2026 BMW X5 lineup in Canada included four models, all equipped with standard all-wheel drive (AWD): xDrive40i, xDrive50e, M60i, and X5 M Competition. Prices ranged from $92,420 to $156,420, excluding the federal luxury tax applicable to prices above $100,000. The test vehicle, an X5 M60i, featured a Manhattan Green paint job, 22-inch wheels, Merino leather upholstery, carbon fibre interior trim, Bowers & Wilkins audio, and all five available option packages. The design elements of the 2026 X5 echoed the original model, with wide kidney grilles, a four-element headlight array, and taillights that bled horizontally into the rear liftgate. The interior aimed for simplicity with a panoramic curved display and minimized controls, enhanced by metallic accents, carbon fibre inlays, and artful metal speaker grilles. Quality was evident in the glass controls, sophisticated display graphics, and the feel of the upholstery, making the X5 seem worth its price, especially with ambient lighting and the panoramic Sky Lounge LED sunroof.

The 2026 Toyota Grand Highlander Hybrid was available with a standard turbocharged gas engine, a hybrid powertrain, and a powerful turbocharged Hybrid Max configuration with full-time AWD and 362 horsepower. Prices for the hybrid powertrains ranged from $57,465 to $69,060. The test vehicle, a Grand Highlander Platinum Hybrid Max, arrived in Storm Cloud paint and had no options, bringing the MSRP to $69,060. Toyota's styling was conservative, drawing inspiration from the RAV4, resulting in a larger version with seating for up to eight and ample cargo space. The interior emphasized function over form, with a layer of luxury in Platinum trim. The climate system was simple, with large temperature adjustment knobs, but the infotainment interface had a tiny volume knob and no tuning knob. Overall, the Grand Highlander offered decent material quality and logically laid-out controls.

The 2026 BMW X5 offered a range of six-cylinder and eight-cylinder powertrains. The M60i test car featured a twin-turbocharged 4.4-litre V8 engine with a 48-volt mild-hybrid system, producing 532 horsepower and 553 pound-feet of torque. It accelerated to 100 km/h in 4.3 seconds, aided by standard xDrive AWD and 22-inch wheels with Pirelli P Zero performance tires. The M60i consumed between 11.2 and 14.3 L/100 km, with an official rating of 12.3 L/100 km combined. The X5 M60i was a hefty SUV, weighing 2,429 kilograms, with a high centre of gravity that affected its ride on uneven surfaces. The M Sport brakes and performance tires helped maintain confidence, while the ride was firm and communicative. The X5 had a maximum towing capacity of 3,265 kilograms but wasn't equipped for off-roading.

The 2026 Toyota Grand Highlander Hybrid Max focused on performance with a turbocharged 2.4-litre four-cylinder engine and electronic full-time AWD with two electric motors, producing 362 net horsepower. It used a traditional six-speed automatic transmission, avoiding the droning of CVTs. The Hybrid Max had a fuel economy rating of 8.8 L/100 km combined, with a towing capacity of 2,268 kilograms. During testing, it averaged 9.1 L/100 km on a city and highway route and 10.1 L/100 km on a mountainous loop. The Hybrid Max offered rewarding acceleration, with electric motors negating turbo lag. The ride quality was soft and isolating, though undulations in the road could cause vertical bounding and lateral rocking. Handling was secure up to a point, with early tire scrub and squeal. Outward visibility was excellent, aided by available cameras, though the front camera's frequent takeover of the infotainment screen was annoying.

The 2026 BMW X5 accommodated five passengers in two rows, with the front seats offering numerous adjustments, including thigh support and massage options. The M60i model featured a heated steering wheel and heated and ventilated front seats. The four-zone automatic climate control lost effectiveness at traffic lights due to the engine start/stop system. Rear seat comfort was acceptable, with good headroom but low seat cushions. The X5 had ample hidden storage, with secure rubber liners in most cubbies. The split-opening power liftgate provided convenience, though shorter people might struggle to reach items near the back seat. The X5 offered 960 litres of cargo space behind the rear seat, expanding to 2,047 litres with the seats folded.

The 2026 Toyota Grand Highlander offered comfortable seating in all three rows, with more than 2,700 litres of maximum cargo space. The Platinum-trim test vehicle featured a Portobello interior with leather and artificial suede upholstery. The front and second-row seats had heating, ventilation, and supportive cushions. The rear doors were long, making it challenging to buckle children into safety seats. The test vehicle had second-row captain’s chairs with a removable centre console, allowing access to the third row. The rearmost seats were reasonably comfortable for adults and tall teens. The Grand Highlander provided 586 litres of cargo space behind the third row, expanding to 1,640 litres with the third-row seats folded and 2,761 litres with the second row folded.

The 2026 BMW X5 featured a BMW Curved Display with a 12.3-inch digital instrumentation panel and a 14.9-inch touchscreen. The iDrive 8.5 infotainment system included wireless Apple CarPlay and Android Auto, SiriusXM 360L satellite radio, and various connected services. A digital assistant was available, though it had issues working with Apple CarPlay. The Bowers & Wilkins audio system provided phenomenal sound. The infotainment screen had numerous menus, best explored when stationary.

The 2026 Toyota Grand Highlander featured a 12.3-inch touchscreen infotainment system, with a 7-inch digital driver display in XLE trim and a 12.3-inch panel in Limited and Platinum trims. The system included wireless Apple CarPlay, wireless Android Auto, SiriusXM satellite radio, and access to Apple Music and Amazon Music accounts. Toyota Connected Services offered features like automatic collision notification and a digital voice assistant. The infotainment system was easy to use, though the font was hard to see against the background. The Platinum test car had a head-up display, digital rear-view mirror, and surround-view camera system. The JBL audio system delivered better sound quality than expected.

The 2026 BMW X5 came standard with high beam assist, forward collision warning, automatic emergency braking, lane departure warning, lane keep assist, blind spot monitoring, rear cross-traffic alert, a speed limit assistant, a driver monitoring system, a collision preparation system, post-collision braking, and parking sensors. The adaptive cruise control was cautious about distance management. The X5 received a four-star overall rating from the NHTSA and a Top Safety Pick+ rating from the IIHS.

The 2026 Toyota Grand Highlander was equipped with Toyota Safety Sense 3.0, including lane keep assist and adaptive cruise control. Proactive Driving Assist was standard but often found irritating. The safety tech operated with accuracy, though the lane keep assist system occasionally strayed too close to lane markers. The Grand Highlander earned a five-star overall rating from the NHTSA but fell short of the Top Safety Pick rating from the IIHS due to headlight performance and small overlap frontal-impact protection.