Hyundai is growing – in more ways than you think.
The brand is on the verge of launching its latest big SUV, joining the recently arrived Santa Fe and Ioniq 9 in a rejuvenated line-up of family-friendly models. But the arrival of the Palisade also speaks of the brand’s plans to grow and change its image, with this new model a dramatic enhancement of its predecessor.
A new hybrid powertrain and a raft of new technologies and luxuries highlight the arrival of the latest Palisade. On the surface level, this is Hyundai’s rival to the Toyota Kluger, but really it will also pose a threat to the likes of the Toyota Prado, LandCruiser and even the likes of the Audi Q8 and BMW X5 for those looking for loads of space and creature comforts.
Hyundai gave selected media, including Torquecafe, an opportunity to sample the new Palisade ahead of its launch in late October. Our test drive was limited to the HART driver training facility in Sydney, but the venue has a recreation of a typical back road, so it provided a meaningful platform to assess the Palisade.
But before we drive it, we have to check out the details of the flagship Calligraphy model we were testing. Hyundai Australia has opted to only bring in the fully-loaded Calligraphy grade initially, although more variants, including the off-road focused XRT, remain under consideration. Expect at least the XRT to join the Calligraphy sometime in 2026.
The Palisade Calligraphy comes standard with eight seats, but with the option to have captain’s chairs in the second row so there is only space for seven. Interestingly, the previous generation Palisade had an almost-even split of seating arrangement, with 53 per cent of buyers opting for the eight-seat layout and 47 per cent going for the seven-seat option.
Each occupant is treated well too, with six 100W USB-C ports dotted around the cabin to ensure everyone can charge their electronic devices. There’s also air-conditioning, cup holders and other storage spots for all three rows too. Plus, not only are the front seats heated but so too are the outboard seats for the second and third rows; which is a very premium touch.
Another premium touch is the four interior colour options for the Nappa leather – brown, black as well as charcoal/brown and navy/grey.
Everyone in the cabin also gets to enjoy the 14-speaker Bose sound system, while the infotainment system also includes a 12.3-inch touchscreen, inbuilt navigation as well as Apple CarPlay and Android Auto.
The new Palisade also enjoys the latest and greatest technology that Hyundai has to offer. This includes the new Digital Key 2.0, which launched on the Ioniq 9. This allows you to pair your car to your smartphone, so you can lock or unlock remotely, share digital keys with others and more.
Taking things a step further, the Palisade includes an all-new fingerprint recognition system to start the engine. There is a small scanner in the centre console, so all you have to do is press your finger against it, and without needing to find a key or take your phone out of your pocket, the engine will fire up. Clever stuff.
There is more noteworthy stuff underneath, including an all-new powertrain and a locally-tuned chassis.
Big SUVs like this used to almost exclusively be powered by turbocharged diesel engines, thanks to the torque-rich nature of a diesel engine. However, Hyundai has ditched both the old 2.2-litre turbodiesel and the 3.8-litre V6 petrol and replaced it with a hybrid set-up.
The new 2.5-litre turbocharged petrol engine is backed up by an all-new hybrid system that integrates two electric motors into the system.
There is one motor dedicated to creating power and a separate one to drive the wheels. Hyundai claims this set-up allows for extended all-electric driving range and improves fuel economy.
The net result is an engine that makes 245kW of power and 460Nm of torque, while sipping just 6.8L/100km of unleaded, which is an impressively small number for an SUV this big.
On our test loop the engine performed well, having no trouble pulling the big SUV along briskly. There’s smooth and steady performance from the engine when you put your foot down, making the Palisade pleasant to drive.
Added to this is a suspension and steering set-up that was developed in Australia for Australia’s unique road conditions. Even on the relatively consistent bitumen at the HART facility, we could feel the well-mannered and composed nature of the Palisade shining through.
All these enhancements don’t come for free though, with Hyundai indicating that the new Palisade Calligraphy will likely cost around $90,000 in showrooms, which is a $10k bump from the old model.
We’ll reserve final judgement until we can take a longer test drive in the real world, but certainly the first impressions of the Palisade are overwhelmingly positive.
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