New Hyundai Palisade with hybrid, off-road options stands out in a crowded field

Globe and Mail

2 days ago

The Palisade three-row SUV was a hit for Hyundai from when it was first introduced in 2018 to replace the Santa Fe XL. Now, after eight years, this modern minivan alternative has been completely redesigned and for the first time will be offered with a hybrid powertrain.
Offering a hybrid in the Palisade is a key part of the company's electrification strategy, according to Olabisi Boyle, Hyundai Motor North America senior vice-president of product planning and mobility strategy. 'Because customers are in different places on the journey toward electrification, you need to have flexibility so that you can manage uncertainties in the auto manufacturing business,' she said.
The new Palisade, which starts at $53,699, is loaded with other firsts as well including an XRT Pro model equipped with off-road suspension and running gear. A factory-installed tow hitch, the company's first integrated front and rear dash camera, powered third-row seats, 10 airbags and a visible passing traffic warning that alerts passengers and locks the doors to prevent dooring a cyclist or hitting a car are also available on all models.
The Palisade has two power options, a new, naturally aspirated 3.5-litre six-cylinder engine and a 2.5-litre turbo four-cylinder in the hybrids. The 3.5-litre replaces a 3.8-litre V6 and, with the smaller displacement, it also makes less power, dropping to 287 horsepower and 260 lb-ft of torque from 291 and 262. The smaller engine was necessitated by emissions regulations, the company said, however, it can still tow up to 5,000 pounds, like its predecessor.
The new hybrid makes an estimated combined 329 horsepower and 339 lb-ft of torque. Hyundai said the hybrid is targeting seven litres per 100 kilometres on the highway with a projected range of more than 900 kilometres. The hybrid powertrain offers an estimated 4,000 pounds of towing capacity.
The 2026 Palisade has grown in every dimension, now offering more interior space and more passenger volume than all of its chief competitors, including the Kia Telluride, Toyota Grand Highlander, Honda Pilot and Chevrolet Traverse. The Palisade's wheelbase has been extended by 70 millimetres and it is 65 millimetres longer and 55 millimetres taller than before. Its total interior volume is 5,125 litres, as compared to the next largest – the Traverse, at 5,102. Inside, this translates into more leg and headroom in every row.
The exterior update is eye-catching. It's a tall, upright package, but not top-heavy. Vertical daytime running lights are balanced by strong horizontal lines in the grille. The over all impression is modern and businesslike.
Chief designer for the SUV Soomin Choe noted in a presentation that the interior was inspired by mid-century modern furniture. That influence is visible in a cylindrical centre console and curved, floating dash that envelopes the dual 12.3-inch displays and shades them from glare. There's also a clever palm rest that allows you to brace your hand when using the touchscreen on the road.
The vehicle is loaded with features and options for passengers such as the third-row powered seats and easy access one-touch control for getting into that row. Thanks to the flexibility of the rear two rows, the Palisade allows for full-size humans to sit in all the seats without having their knees around their ears. There are also controls on the touchscreen that let the driver manage the seating configuration without having to get out and open the rear hatch.
On the road, the Palisade delivers a quiet, smooth ride. New sound absorbing materials and glass provide a luxuriously peaceful interior and the seats are well designed and comfortable. The third-row ride is predictably a little rougher than up front, but new bigger rear windows make up for it with panoramic views.
The first XRT Pro model for Hyundai demonstrated the capabilities of its electronic limited-slip differential, increased ground clearance and terrain modes for mud, snow and sand over a short off-road course in California. While most of the course was simply a rough dirt road, a steep pitch allowed the downhill brake control and surround view monitor to come into play, controlling the Palisade's descent and providing a view of the ground ahead. The company hinted that there will be more XRT Pro models to follow.
Canadian buyers will have five trims to choose from, all with all-wheel drive. The base model is the Preferred Trend with the 3.5-litre engine, starting at $53,699. It is the sole model that will accommodate eight passengers.
The XRT Pro starts at $57,799 and the Ultimate Calligraphy opens at $62,499, both with the V6. Hybrids start at $60,499 for the Luxury model; the Ultimate Calligraphy hybrid starts at $65,699. The gas-powered models are available now and the hybrids will arrive this fall. All are built at Hyundai's plant in Ulsan, Korea.
Julian Cheng, Hyundai Auto Canada Corp.'s senior product planner, said that with the previous version of the Palisade 60 to 70 per cent of sales were of the top trim Ultimate Calligraphy. He said they expect that to continue with the new model. 'For the price, you get a lot of content, even for the current generation,' he said. 'So, we took that idea and applied it for the 2026.'
For families shopping in the crowded full-size SUV market, the 2026 Palisade will stand out as a well-priced, practical and attractive model.
The writer was a guest of the automaker. Content was not subject to approval.
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