If you’re shopping for a large family SUV, the 2026 Hyundai Palisade deserves your attention. Coming to Australia in the final quarter of 2025, this second-generation SUV represents a significant step forward for families who need space, efficiency, and modern technology.
What’s New for 2026?
The biggest news is that Hyundai is introducing hybrid power to the Palisade for the first time anywhere in the world. This isn’t just a minor update – it’s a complete redesign that addresses many of the concerns families have raised about large SUVs.
Hybrid Power Comes First
Unlike many manufacturers who introduce hybrid versions later, Hyundai is launching the Palisade with hybrid power as the initial offering. This hybrid system combines a turbocharged 2.5-litre four-cylinder engine with an electric motor to deliver impressive performance and better fuel economy.
The total system output reaches 246kW, which is more power than the current model’s V6 engine. What’s particularly appealing for families is the improved fuel consumption – the hybrid achieves around 8.8L/100km compared to the current petrol V6’s 10.8-11.1L/100km
Engine Options and Performance
Hybrid Powertrain Details
The hybrid system pairs a 193kW turbocharged petrol engine with a 54kW electric motor. The setup uses a six-speed automatic transmission and will be available with both front-wheel and all-wheel drive options – a welcome change since the current Australian model only offers front-wheel drive.
Traditional Petrol Alternative
Following the hybrid launch, Hyundai plans to introduce a 2.5-litre turbocharged petrol engine option. This engine produces 207kW and 422Nm of torque, paired with an eight-speed automatic transmission. While it offers 10kW less power than the outgoing V6, it delivers 67Nm more torque.
| Powertrain Comparison | Current 2025 Model | New 2026 Hybrid |
|---|---|---|
| Engine Type | 3.8L V6 Petrol | 2.5L Turbo + Electric Motor |
| Total Power | 217kW | 246kW |
| Fuel Economy | 10.8-11.1L/100km | 8.8L/100km |
| Drive Options | Front-wheel drive only | Front or all-wheel drive |
| Transmission | 8-speed automatic | 6-speed automatic |
| CO2 Emissions | 183-188g/km | 114-145g/km |
Size and Space Improvements
Bigger in Every Direction
The new Palisade has grown significantly, which is great news for families who need maximum interior space. It’s now 65mm longer, 5mm wider, and 55mm taller than the current model. The wheelbase has also increased by 70mm, directly translating to more legroom for passengers.
Seating Configurations
Families can still choose between seven and eight-seat configurations, depending on their needs. The extra interior space should make the third row more comfortable for adults during longer journeys.
Design and Technology Updates
Premium Exterior Styling
The 2026 Palisade adopts Hyundai’s latest design language with distinctive ‘pixel’ lighting elements. Five wide daytime running light segments bookend the headlight clusters, creating a more premium appearance. New paint colors include Ecotronic Grey Pearl, Cast Iron Brown Pearl, Galaxy Maroon Pearl, and Crazy Blue Pearl.
Modern Interior Technology
Inside, you’ll find a 12.3-inch digital instrument cluster paired with a 12.3-inch infotainment touchscreen. These displays are neatly integrated into the dashboard, providing easy access to vehicle information and entertainment features.
Market Positioning and Competition
Taking on the Toyota Kluger
Hyundai is directly targeting the Toyota Kluger with this new model. The hybrid powertrain puts the Palisade in direct competition with the Kluger Hybrid, while potentially offering more space and features.
Unique Market Position
Hyundai is one of the few brands in Australia offering two large, three-row SUVs – the Palisade and the recently redesigned Santa Fe. The company expects sales to split roughly 50/50 between these models, giving families options at different price points.
Environmental and Economic Benefits
Government Incentives
The hybrid powertrain’s lower emissions (114-145g/km compared to 183-188g/km for the current V6) should help families avoid penalties under Australia’s New Vehicle Efficiency Standard. This could translate to significant savings over the vehicle’s lifetime.
Real-World Benefits
For families concerned about fuel costs, the hybrid’s improved efficiency could save hundreds of dollars annually in fuel expenses, especially with current petrol prices.
What This Means for Families
The 2026 Palisade addresses three key concerns families have about large SUVs: fuel efficiency, environmental impact, and interior space. The hybrid powertrain delivers better economy without sacrificing performance, while the larger dimensions provide more comfort for passengers and cargo.
For families currently driving smaller SUVs but needing more space, or those considering switching from large petrol SUVs to something more efficient, the new Palisade presents a compelling option.
The timing of the Australian launch – late 2025 – means families planning vehicle purchases should consider whether waiting for the new model makes sense for their situation.
Frequently Asked Questions
Q: When will the 2026 Hyundai Palisade be available in Australia?
A: The new Palisade will arrive in Australia during the fourth quarter of 2025 (October to December).
Q: Will the hybrid version cost more than the current petrol model?
A: Hyundai Australia hasn’t announced pricing yet, but hybrid versions typically carry a premium that’s often offset by fuel savings and potential government incentives.
Q: Can I get all-wheel drive with the new Palisade?
A: Yes, both the hybrid and petrol engines will be available with all-wheel drive, unlike the current Australian model which only offers front-wheel drive.
