2026 GMC Terrain: Gaining Ground

Compact SUVs are particularly popular with consumers because of their versatility. There are plenty to choose from, and some fare better than others. What about the GMC Terrain? This one finds itself in the middle of the pack, alongside the Subaru Forester, Kia Sportage and Volkswagen Tiguan.

It doesn’t sell as much as the Toyota RAV4 or Honda CR-V, yet managed to achieve a record year in 2024 and kept that momentum going early in 2025 with an 8.3-percent increase in sales from January through March—its best quarter ever. The freshly launched third-generation Terrain is more refined and simultaneously more rugged than before.

• Also: 2025 GMC Terrain Follows Chevy Equinox’s Lead With Major Redesign
• Also: The Best Compact SUVs in 2025

Big on Tech and Features

Aesthetically, the new GMC Terrain looks mean and tough with a sharp, boxy exterior. The base Elevation model comes standard with 17-inch wheels and fabric seats. All of them feature a portrait-style, 15-inch infotainment display with a clean interface.

Despite its large size, the screen is easy to use and incorporates Google functionalities in addition to wireless Apple CarPlay and Android Auto. Like many other GM products, the Terrain also includes a 5G hotspot.

The 11-inch digital instrument panel is visually appealing and configurable. Other standard features include a heated steering wheel and front seats, rain-sensing wipers and a power liftgate. Ventilated seats and wireless smartphone charging are optional.

One Engine Only

The 2026 GMC Terrain is more comfortable than its predecessor, that’s for sure. In particular, the seats have been redesigned with new materials to make them softer. Also, the suspension does a better job of masking road imperfections. The AT4 model goes one step further with more advanced dampers that result in a smoother ride. The top-line Denali, despite riding on 19- or 20-inch wheels, is surprisingly smooth, too.

Mechanically, the Terrain continues to rely on a turbocharged 1.5-litre four-cylinder engine. Output is unchanged at 175 horsepower. Ditto for torque, which peaks at 180 lb-ft on FWD-equipped models (CVT only) and increases to 203 lb-ft on AWD models. Maximum towing capacity is rated at 800 lbs and 1,500 lbs, respectively. The available AWD system pairs with a new eight-speed transmission that proves more responsive and more pleasant than the old nine-speed unit, although it is sometimes slow to downshift in manual mode.

As far as fuel consumption is concerned, our one-day trip around the Detroit area consisted mainly of secondary roads and some highway driving. The final score was 7.7 L/100 km, which is quite good and a notable improvement from our 2022 test drive that resulted in an average of 8.2 L/100 km in similar conditions.

While we didn’t get the opportunity to drive a CVT-equipped Terrain Elevation, we enjoyed our experience in a 2025 Chevrolet Equinox during a previous trip to Minneapolis. Consequently, we feel this is also an option to consider for the Terrain, especially as fuel consumption is expected to be lower.

Please excuse us for failing to take the SUV off-road, even though this is something few owners will dare to do. It would have been great to test the AT4-exclusive raised suspension, skid plates and Terrain mode, mind you. The latter is used at low speeds to tackle sketchy terrain (hence the name), while the Off-Road mode gives the driver more freedom by limiting traction control intervention. By the way, GMC still thinks it’s a good idea to have a manually selectable AWD system. We beg to differ.

The Terrain was a pleasure to drive around town thanks to large windows and a quiet cabin. On that note, speakers help neutralize outside noise—and it works. The tall hood and heavy steering give the impression of driving a small truck, but the engine's sound tells a different story. Offering a second powertrain option would be wise by GMC if you ask us. Hybrid technology, for example, could boost performance and fuel economy at the same time. If that’s what you’re after, many other compact SUVs have you covered.

Going in the Right Direction

Manufactured at the San Luis Potosí plant in Mexico, the 2026 GMC Terrain is available at Canadian dealers now in three trim levels. The base Elevation starts at $35,599 (MSRP) with front-wheel drive or $37,899 with all-wheel drive. The adventurous AT4, featuring red tow hooks, black accents and exclusive 17-inch wheels, retails from $43,599. Finally, the top-line Denali boasts a higher level of luxury and makes more liberal use of chrome. It costs $47,599.

Overall, the new Terrain addresses many shortcomings of the previous generation. It does so while offering a host of convenience features and some 15 safety technologies as standard. Rivals need to watch out: GMC is gaining ground.