Hyundai Palisade Hybrid: Everything we know about the next-gen SUV

  • The Hyundai Palisade Hybrid is coming as part of the second generation model family
  • Reports out of S.Korea claim that the hybrid version would also be sold in the U.S.
  • Will debut a 2.5L Hybrid system; expected to be priced from around $45,000
  • Next-gen Palisade series reportedly to be launched in the U.S. in H2 2025

Update: All sections revised with new information.

With Hyundai offering three electrified powertrains in the Tucson and two electrified powertrains in the Santa Fe, and adding a Hybrid model for the Carnival for MY2025, it is logical to expect the Palisade to gain an electrified powertrain as well. In fact, the Hyundai Palisade Hybrid is in the pipeline and is expected to be launched in the U.S. next year.

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

Design

Earlier this year, taking advantage of the natural cover provided by winter snow, Hyundai pressed the first test prototypes of the next-generation Palisade (codename: Hyundai LX3) into action in South Korea and the United States.

Next-gen Hyundai Palisade (2025 launch) rendering
Like the new Santa Fe, the second-gen Palisade (rendered) will be a radical departure from the current SUV.

The next-gen Hyundai Palisade features a boxy, practical shape that should maximize space. It has an upright front fascia to create a dominating first impression. The larger grille with horizontal slots should 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. The silhouette is expected to have the sensibilities of a Range Rover with large wheels, flared fenders, and a generous greenhouse.

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 carry forward some elements from the 2024 Hyundai Santa Fe. The new three-spoke steering wheel and column mounted gear selector are familiar from the smaller SUV, but that’s where the similarities end.

The next-gen Hyundai Palisade features a unique digital display which is embedded in the dashboard that combines the instrument cluster, climate panel, and the infotainment screen. This is different from the Santa Fe or Tucson, which use a free-standing design. Additionally, we’re able to spot a center console that appears to be floating, which could move back and forth, as seen in the Ioniq 5.

New Hyundai Santa Fe interior
Interior spy shots show a few common features between the new Santa Fe (pictured) and the next-gen Palisade.

Hyundai should equip the next-gen Palisade with features like dual wireless smartphone charging system, wireless Apple CarPlay, wireless Android Auto, and OTA updates, and Digital Key 2. Moreover, Bose premium audio, 12” heads-up display, and Surround view monitor are also expected.

ETNews reports that Hyundai is developing 7-, 8-, and 9-seater versions of the new Palisade, and we’d imagine that 7- and 8-seater models would be suitable for the U.S. market. 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. 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 current Palisade has a 114.2 in. wheelbase, and measures 196.7 in. in length, 77.8 in. in width, and 68.9 in. in height.

Next-gen Hyundai Palisade Hybrid rendering
ETNews reports that Hyundai is developing 7-, 8-, and 9-seater versions of the next-gen Palisade, and we’d imagine that 7- and 8-seater variants would be suitable for North America.

Next-gen hybrid system

According to a report ETNews released on January 28, 2024, the next-gen Palisade will debut Hyundai’s next-gen hybrid powertrain, based on the Theta III 2.5-liter turbocharged gasoline engine. It will feature a larger battery pack and motor than the 1.6L system, which powers models like the Carnival and the Tucson.

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.

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 should be addressed with the electrified powertrain, which should deliver 25-30 MPG (combined), while still making around 300 hp.

Price & Release Date

ETNews reports that production of the new Palisade has been advanced from January 2025 to December this year. The car will continue to be made in Hyundai Motor Company’s Ulsan plants 2, 4, and 5, with production volume increased to 210,000 units annually.

The South Korean publication has learned that North American sales will begin in the second half of next year. If this is the schedule, the next-gen Palisade will be a Model Year 2026 in the U.S.

When it comes to the U.S. in the second half of next year, we expect the all-new Palisade Hybrid to start at around USD 45,000, with well-equipped variants crossing USD 55,000. It will compete with the likes of the Toyota Grand Highlander, Honda Pilot, Mazda CX-90 and the next-gen Kia Telluride.

TopElectricSUV says

Next-gen Hyundai Palisade Hybrid rendering
The new Palisade will be a complete upgrade over the current model, with a more powerful hybrid system, better interiors, more space, and a unique design.

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.

Featured image: TopElectricSUV’s rendering of the next-gen Hyundai Palisade Hybrid.