2025 Hyundai Palisade Review: Hybrid Power, Premium Interior & Value Analysis
First Drive: Hyundai's Premium Family SUV Evolves
If you're comparing large family SUVs in Australia, Hyundai's new-generation Palisade demands attention. After analyzing this pre-production model, I believe it represents a strategic shift for Hyundai into premium territory. Priced from approximately $90,000 for the Calligraphy grade, it replaces diesel with a sophisticated hybrid powertrain while adding significant space and technology. For families needing three-row comfort without luxury brand pricing, this evolution warrants careful consideration. Hyundai's confidence in this model is evident in its substantial price increase over the outgoing version, but does the value equation hold up? Let's examine the critical details.
Powertrain Shift: Why Diesel Disappeared
The discontinuation of diesel—previously accounting for most Palisade sales—reflects tightening emissions standards. Hyundai replaces it with a 2.5L turbocharged hybrid system generating 245kW and 460Nm. This setup pairs a six-speed automatic with dual electric motors, enabling all-wheel drive while targeting 6.8L/100km combined fuel economy. During my limited drive, the system demonstrated seamless transitions between electric and petrol power, though real-world efficiency remains unverified. Importantly, this isn't a range-extender system like Nissan's; the petrol engine directly drives wheels when needed. While the engine note is noticeable under acceleration, noise insulation effectively minimizes road and wind intrusion.
Interior & Practicality: Where the Palisade Shines
Space Optimization and Family Focus
Measuring larger than both its predecessor and the Santa Fe, the Palisade prioritizes occupant comfort across all rows. The Calligraphy model features:
- Nappa leather heated/vented front seats
- Electrically adjustable heated/vented second row
- Heated third row with sliding/reclining function
The column-mounted shifter liberates substantial console storage, including two deep bins and multiple high-power USB ports. Physical climate and audio controls—a thoughtful touch often overlooked in modern vehicles—enhance usability while driving. Hyundai's choice of materials and finishes creates a genuinely upmarket ambiance, though the terra cotta color scheme may polarize buyers.
Seating Configurations: 7 vs 8 Seats
Unlike many rivals, the Palisade offers flexible seating:
| Configuration | Key Features | Best For |
|---|---|---|
| 7-Seat | Captain's chairs (2nd row) | Easier third-row access |
| 8-Seat | Bench seat (2nd row) | Maximum passenger capacity |
The third row stands out for offering both heating and electrical adjustment—features typically reserved for luxury brands. Legroom remains competitive even with the second row slid back, though adults will find it best suited for shorter journeys.
Driving Dynamics and Value Proposition
On-Road Behavior: Comfort Over Agility
The Palisade's self-leveling rear dampers contribute to a composed ride, absorbing imperfections effectively during my brief test. Steering is accurate but deliberately weighted for stability rather than sportiness. As expected in a vehicle of this size (over 5 meters long), it feels substantial through corners but maintains predictable behavior. The hybrid system delivers adequate acceleration, with electric motors providing immediate torque response when overtaking. While not quick by performance SUV standards, it never feels underpowered.
Is the Price Justified? Breaking Down the Premium
At approximately $90,000, the Palisade Calligraphy enters premium territory. However, standard equipment includes:
- Tri-zone climate control
- 12.3-inch touchscreen with navigation
- Digital instrument cluster
- Premium audio system
- Comprehensive safety suite (details TBC)
Compared to rivals like the Toyota Kluger Hybrid Grande (from $87,200), the Palisade offers more advanced seating features and a more luxurious cabin. For families prioritizing long-distance comfort over badge prestige, this represents compelling value. Hyundai's 5-year/unlimited km warranty provides additional peace of mind.
Key Considerations Before Buying
Potential Trade-offs to Evaluate
- Fuel Economy Verification: Hyundai's 6.8L/100km claim requires real-world testing, especially given the vehicle's mass.
- Diesel Withdrawal Impact: Former diesel owners should test-drive extensively to assess hybrid performance satisfaction.
- Entry-Level Availability: Lower-spec variants arriving later may offer better value for budget-conscious buyers.
Pro Tips for Australian Families
- Test Third-Row Access: If regularly transporting older children or adults, opt for the 7-seat configuration's walk-through aisle.
- Prioritize Charging Placement: With 6 USB ports, map device locations during your test drive to avoid cable clutter.
- Verify Cargo Dimensions: Despite the growth spurt, measure pram/grocery space with the third row upright.
The Verdict: A Competing Premium Family SUV
Hyundai's Palisade makes a convincing case for buyers seeking premium features without European badge premiums. The hybrid powertrain delivers refinement and potential efficiency gains, while the interior sets new standards for mainstream brands. Although the price increase is significant, the comprehensive equipment list and thoughtful packaging justify the premium for families valuing space and comfort. As Drive.com.au's full review approaches later this year, we'll verify real-world efficiency and ride quality across Australian roads. For now, the Palisade emerges as a sophisticated, family-focused contender that redefines Hyundai's capabilities.
"Would you prioritize the hybrid savings or third-row comfort in your next family SUV? Share your deal-breakers below!"
