The GMC Terrain has experienced some ups and downs the past few years, with some of the dips due to supply-chain issues rather than slackening demand, GMC says. Regardless of the cause, the brand wants to make its compact/midsize CUV a stronger competitor for the 2025 model year, so General Motors’ “Professional Grade” marque has made numerous upgrades for its core Elevation trim, and it is adding to the lineup for the 2026 model year with the AT4 and Denali premium trims.
The Terrain managed 82,100 sales last year, which was a bounce-back year from 2023 when it dropped to 71,850, which followed a steep decline from 86,560 in 2022, per Wards Intelligence data. Wards Intelligence places the Terrain in the Middle CUV segment, (given formerly “compact” models’ size increases over the past decade). It’s the best-selling segment in the U.S. and was responsible for a whopping 3.9 million of 15.9 million U.S. new light vehicle sales in 2024. The Toyota RAV4 sharply outsells the Terrain and nearly every other entrant in the segment, with RAV4 sales tallying 475,193 last year, making it the No.3 best-selling U.S. light vehicle in 2024 after the Ford F-Series and Chevrolet Silverado.
Performance & Powertrain
The 2025 Terrain continues with the 1.5L turbocharged inline-4 cyl. delivering 175 hp and 203 lb.-ft. of torque (275 Nm). Front-wheel-drive (FWD) models are paired with a continuously variable transmission (CVT), while all-wheel-drive (AWD) variants receive a new 8-speed automatic transmission.
There are no hybrids in the lineup yet, so fuel economy for the compact CUV is middling: FWD: 27 combined mpg (8.7 L/100km); AWD is 25 combined mpg (9.4 L/100km).
While towing boats is not the Terrain’s domain, it nonetheless has a skimpy towing capacity certification of 1,500 lbs. (680 kg) compared with competitors even for the odd U-Haul trailer: The Toyota RAV4 will tow up to 3,500 lbs. (1,587 kg); the Ford Escape tows up to 3,000 lbs. (1,360 kg), although it does match the prowess ofthe Escape Hybrid.
Ride & Handling
In a short test drive around metro Detroit, the Terrain's ride seems tuned for everyday driving comfort, making it perfectly adequate, if not titillating, at handling urban roads and highways. The available AWD system enhances traction in various conditions, and the Traction Select System offers modes like Off-Road and Tow/Haul, providing versatility for different driving scenarios.
Acceleration from city street onto highway didn’t blow anyone away, but we got into the fast lane eventually and without complaints about insufficiency of speed. Steering is responsive, and we experienced limited body roll while taking a sharp turn.
Unlike many competitors, GMC does not have full-time AWD. The AWD system is manually activated via a button or by selecting a specific drive mode. The system enhances traction in low-grip, sloppy driving conditions.
Interior
The interior is a premium-feeling environment with GMC flashing its pricier teeth relative to its Chevy Equinox cousin. Sweeping horizontal lines and chrome accents across the instrument panel, upper doors and console armrest create an upscale mood. The 15-in. (38-cm) portrait-oriented floating center touchscreen that provides the engagement with infotainment apps seems huge, but GMC likes to insert some of the features it puts into work trucks and SUVs into the Terrain. It runs the Android Automotive operating system with Google Services, Google Maps, Google Assistant and the Play store.
An 11-in. (28-cm) digital driver information center provides customizable displays for navigation, media and vehicle status. The CUV also offers wireless Apple CarPlay and Android Auto, along with a 5G Wi-Fi hotspot.
Competitors
In the compact CUV arena, the 2025 Terrain faces tough competition from not only the RAV4 and Equinox, but also the Honda CR-V, Mazda CX-5, Nissan Rogue, Subaru Forester, Ford Escape, Tesla Model Y, Hyundai Tucson and Kia Sportage. The CR-V sold more than 403,000 copies last year, while the Model Y racked up 376,000 sales, per Wards Intelligence data.
Pricing
The 2025 GMC Terrain is available in the Elevation trim, with pricing as follows: FWD, $31,395; AWD, $33,395. The Denali and AT4 trims are returning to showrooms for the 2026 model year.
The AT4 offers a special Terrain driving mode, lifted ride height, metal underbody protection shield, front-end recovery hooks, 17-in. aluminum wheels with all-terrain tires, jet-black perforated leather seats and AT4 signature accent stitching, and AT4 badging on the exterior with gloss black accents. The price for the AT4 starts at $38,600.
The Denali trim, which starts at $43,590, has a premium tuned suspension with enhanced shock control, and chrome exterior accents including the grille, roof rails and door handles. Also offered are French-stitched perforated leather seats in jet black or other assorted colors, a native nav system, Bose premium 7-speaker audio system, wireless phone charging, head-up display, front and rear parking sensors, heated and ventilated seats, and body-colored lower body trim.
The Terrain is in a segment where there is fierce price competition. So far, GM says it will not raise prices as it pays extra tariffs to import them into the U.S. from Mexico.
