With Hyundai introducing three electrified powertrains in the Tucson and two electrified powertrains in the Santa Fe, many expect that the Palisade will receive an electrified powertrain as well. However, a company official has confirmed that the Hyundai Palisade Hybrid will not be launched in the foreseeable future.
No Hyundai Palisade Hybrid for now
On July 27, 2022, Hyundai announced the 2023 Palisade in Australia with 3.8L GDi gasoline and 2.2L CRDi diesel engines. Guido Schenken has said that “electrification is not (planned) for Palisade in this generation,” Chasing Cars reported on August 4, 2022. Schenken is the South Korean automaker’s Public Relations Senior Manager in Australia.
The Hyundai Palisade sits on the same platform as the Kia Telluride, which is a gas-only model worldwide. We aren’t sure if this platform supports electrification in the current specification. It is worth noting that the concept version of the Telluride that Kia showcased at NAIAS 2016 had a hybrid powertrain that combined a 270 hp 3.5L GDI V6 engine and a 130 hp electric motor and was capable of delivering a fuel economy of 30 MPG (highway). However, the Telluride concept was based on a stretched version of the Sorento.
Schenken’s statement indicates that if Hyundai introduced an electrified powertrain for the Palisade, it wouldn’t be before the model entered its second generation. At the earliest, Hyundai may renew the Palisade during the mid-decade.
Sales potential untapped
The first-gen Palisade is selling in decent numbers in the U.S. (28,736 in 2019, 82,661 in 2020, and 86,539 in 2021). However, it’s nowhere near the segment’s potential if you consider where its rivals are. Jeep sold 264,444 units of the Grand Cherokee in 2021. Toyota wasn’t far behind, selling 264,128 units of its contender – the Highlander. Ford’s Explorer was also way ahead of the South Korean model, ranking third in its segment by registering 219,871 units in sales.
The Palisade’s sales figures suggest that it has plenty of room to grow. Plus, Hyundai just showed its commitment to the model with a significant facelift for MY2023.
Ioniq 7: A fully-electrified alternative to the Palisade
Hyundai will likely pitch the Ioniq 7 pure electric SUV to customers waiting for an electrified Palisade. Expected to begin at around USD 50,000, the Ioniq 7 will be around USD 15,000 more expensive. Still, the premium pricing could be justified with more space, comfort, and convenience, better maneuverability, and higher performance. Plus, while Hyundai imports the Palisade from South Korea, it may manufacture the Ioniq 7 locally to keep it affordable and plan market-specific variants and adaptations.
HMG’s electrified vehicle manufacturing in the U.S.
Hyundai (Hyundai Motor Company) and its parent company Hyundai Motor Group have big plans for EVs in the U.S., which is the Palisade’s biggest market worldwide. Hyundai plans to localize the Santa Fe Hybrid and the Genesis Electrified GV70 (Genesis is a brand of Hyundai Motor Company) by producing them in Montgomery (Alabama) plant starting in October 2022 and December 2022, respectively.
Hyundai Motor Group plans to invest USD 10 billion in the U.S. by 2025. More than half of that investment, USD 5.54 billion to be specific, will go into dedicated EV and battery manufacturing facilities in Bryan County (Georgia). HMG expects to start production at the new EV plant in H1 2025 with an annual production capacity of 300,000 units.
Customers who currently want a Hyundai Palisade Hybrid can consider the Toyota Highlander Hybrid (USD 39,555 onwards) or the Ford Explorer Hybrid (USD 52,375).
Featured Image Source: Hyundai