Hyundai Palisade Hybrid to be launched in 2025: Report

Update: ‘Interior & Features’ section added, ‘Next-gen hybrid system’ sub-section added to ‘Specifications,’ and ‘U.S. release date’ section updated.

With Hyundai offering three electrified powertrains in the Tucson and two electrified powertrains in the Santa Fe, it is logical to expect the Palisade to gain an electrified powertrain as well. In fact, the Hyundai Palisade Hybrid is in the pipeline, but it will not be launched in the current generation vehicle.

Here’s our preview of the next-gen Palisade, which will include a first-ever Palisade Hybrid.

Design

According to an exclusive report ET News published on May 29, 2023, the next-gen Hyundai Palisade range will include a Hyundai Palisade Hybrid. Spy pictures circulating online in South Korea (view on Auto Post Korea) show that ‘LX3’ is the project’s internal codename.

Taking advantage of the natural cover provided by winter snow, Hyundai has pressed the first test prototypes of the next-generation Palisade into action in Europe. However, avid spy photographers have still managed to capture the future SUV, revealing the first concrete details.

The next-gen Hyundai Palisade retains the familiar boxy, practical shape that should maximize space. It has an upright front fascia to create a dominating first impression. The larger grille should certainly give it a more intimidating look. Raised roof rails and vertical front and rear lights are also among the details revealed in the spy shots.

We expect that, like the fifth-gen Santa Fe, the second-gen Palisade will be a radically designed model. Olabisi Boyle, vice president, product planning and mobility strategy, Hyundai Motor North America, told CarBuzz at the 2023 LA Auto Show that the company wants to take the things customers like about the Palisade “to the next level” in the second generation. She hinted that the next-gen Palisade’s changes would be just as significant as the fifth-gen Santa Fe, although not necessarily similar.

Interior & Features

Spy pictures indicate the interior of the next-gen Hyundai Palisade will look similar to the 2024 Hyundai Santa Fe. They show an upright dashboard, a combined driver information display and central display, and a chunky steering wheel, all similar in design to the smaller model. Even the color scheme reminds us of the Santa Fe, which is available in the Supersonic Gray interior. A column-type gear selector should create space in the center console for additional storage.

Hyundai should equip the next-gen Palisade with features like dual wireless smartphone charging system, a 12.3-inch digital instrument cluster, a 12.3-inch touchscreen infotainment system with wireless Apple CarPlay, wireless Android Auto, and OTA updates, and Digital Key 2. The company will likely offer it in seven- and eight-seat versions, with the former featuring power-folding captain seats. One of the interior spy shots has already shown the captain’s seats and a B-pillar-mounted ingress/egress assist handle in the second row.

The Hyundai Palisade Hybrid is expected to support over-the-air (OTA) updates for its components. Vital parts like the suspension, brakes, and airbags, not just the infotainment system and other electronics, should be updatable over the air. Semi-autonomous driving capability with Hyundai Driving Pilot 3 is also expected to be a feature highlight.

Specifications

Dimensions

The Hyundai Santa Fe has grown moving into its fifth generation, and now it is closer to the size of the Palisade. It’s imperative that the next-gen Hyundai Palisade up-sizes to continue offering more space and value.

Based on spy pictures, it is evident that the next-gen Palisade will be larger than the current SUV. The pictures reveal a longer wheelbase, which indicates that there will be more passenger space. For reference, the Palisade has a 114.2 in. wheelbase, and the outgoing model measures 196.7 in. in length, 77.8 in. in width, and 68.9 in. in height.

Next-gen hybrid system

According to a report ET News released on January 28, 2024, the next-gen Palisade will debut Hyundai’s next-gen hybrid powertrain, based on a 2.5-liter turbocharged gas engine. The first-ever Hyundai Palisade Hybrid will have a 6-speed automatic transmission. The report adds that Hyundai plans to sell the Palisade Hybrid in the U.S.

Currently, Hyundai employs a 3.8-liter naturally aspirated direct-injection V6 in the Palisade. This powerplant develops 291 hp at 6,000 rpm and 262 lb.-ft. of torque at 5,200 rpm. An 8-speed automatic transmission is standard, and an AWD system is available optionally. The automatic transmission’s paddle shifters could be more responsive, and we expect that improvement in the next generation.

The gas-powered Palisade isn’t exciting to drive, but it gets the job done. It’s powerful enough, easily maneuverable, and despite the big dimensions, handles decently well around the corners. Plus, it offers a comfortable ride while not being extra soft that’d make it seem floaty. The chief drawback of the Palisade continues to be its low fuel economy with EPA estimating the plush family hauler is capable of delivering just 22 MPG (FWD)/21 MPG (AWD). This shouldbe addressed with the electrified powertrain.

U.S. release date

The production of the next-gen Palisade, presumably the first-ever Palisade Hybrid, will commence in January 2025, as per the second ET News report. Hyundai will manufacture 100,000 units of the next-gen model annually.

Boyle told CarBuzz at the 2023 LA Auto Show that we’ll get more surprises like the fifth-gen Santa Fe over the next 18 months. That’s in line with the developments reported in South Korea, and the next-gen Palisade and the potential first-ever Palisade Hybrid are likely to be in dealerships in the first half of 2025.

The first ET News report suggests that Hyundai will start exports of the next-generation Palisade in April 2025 and subsequently introduce it in North America in June 2025. We’ll continue to keep an eye on developments and report back when there is further info.

No Hybrid model for the current generation Palisade

Considering the timeline of the second-gen Palisade’s launch, which is little over a year out, it is unlikely that Hyundai will add electrified variants to the current-gen lineup. Had the company intended to include a Palisade hybrid in the present generation model, it would have been more feasible at the time of the mid-cycle refresh in 2022.

Hyundai officials have also been citing the lack of demand for a Palisade hybrid. On November 17, 2022, CarBuzz asked Boyle if there was a potential for a Palisade Hybrid. To that, Boyle indicated the company hasn’t seen much demand yet, saying it will make a Palisade Hybrid if it finds that customers want such a model.

Palisade’s rivals offer hybrid options

The first-gen Palisade is selling in decent numbers in the U.S. (82,661 units in 2020, 86,539 in 2021, 82,688 units in 2022, and 89,509 units in 2023.). However, it’s nowhere near the segment’s potential if you consider where rivals are. For instance, in 2023, Jeep sold 244,594 units of the Grand Cherokee, which now also comes with a PHEV.

Ioniq 7: A fully-electrified alternative to the Palisade

Hyundai is expected to pitch the Ioniq 7 pure-electric SUV as an alternative to the electrified Palisade. Expected to begin at around USD 50,000, the Ioniq 7 will be nearly USD 15,000 more expensive. Still, the premium pricing could be justified with more space, comfort, and convenience, better maneuverability, digital features, and higher performance, potentially attracting some of the prospective Palisade buyers.

TopElectricSUV says

While the Hyundai Palisade is desirable because of its bold design, great comfort and convenience, and high-end tech that make it an excellent value for money, the unavailability of a fuel-sipping hybrid system is keeping it from becoming the perfect three-row mid-size SUV. The only main drawback is about to be fixed in 2025, and we think that’ll make it the top recommended model in the segment.