The 2021 Chevrolet Tahoe and Suburban are vastly improved, but one of their most interesting features – aside from an all-new independent rear suspension – is a newly available turbodiesel engine.

The 3.0-liter Duramax inline-six produces 277 hp (207 kW / 281 PS) and 460 lb-ft (624 Nm) of torque, and promises to be an interesting alternative to the familiar 5.3- and 6.2-liter petrol V8s.

We’ll be testing one of the models soon, but Chevrolet has confirmed the diesel-powered Tahoe will have a class-leading fuel economy rating of 21 mpg city, 28 mpg highway and 24 mpg combined with rear-wheel drive.  That drops to 20 mpg city, 26 mpg highway and 22 mpg combined with four-wheel drive.

In the larger Suburban, the numbers dip to 21 mpg city, 27 mpg highway and 23 mpg combined with rear-wheel drive. With four-wheel drive, they remain unchanged from the Tahoe at 20 mpg city, 26 mpg highway and 22 mpg combined.

Driven: 2021 Chevrolet Tahoe Grows Up And Adds A Dash Of Sophistication

The diesel engine will likely appeal to customers who tow and Chevrolet was quick to note the diesel-powered Tahoe has a towing capacity of up to 8,200 lbs (3,719 kg). That number maxes out at 8,000 lbs (3,629 kg) on the Suburban, but both models have an exhaust brake in tow-haul mode for added driver confidence.

While the diesel engine is new for 2021, it’s a return of sorts as Chevrolet hasn’t offered one in their full-size SUVs since 1999. Thankfully, it’s an affordable upgrade as the diesel will only cost an additional $995 on the LS, LT, RST and Premier trims. On the range-topping Tahoe and Suburban High Country, it actually saves buyers $1,500.

Deliveries are slated to begin before the end of the year and we’ll have more to say about the models next week.