All-new flagship Hyundai Palisade SUV switches to hybrid power: New drivetrain also expected to land in Kia Tasman ute

October 3, 2025October 2, 2025 John Mahoney 10619 Views hybrid, Hyundai, Palisade

The all-new 2026 Hyundai Palisade has arrived in Australia, with the second-generation large SUV switching to hybrid power.

It will be offered only in a single flagship Palisade Calligraphy Hybrid variant, priced from $89,900 plus on-roads.

Switching to a new petrol-electric turbocharged 2.5-litre four-cylinder petrol engine, the new powertrain produces 245kW and 460Nm of torque, shuffling all its might to all four wheels via a new six-speed automatic transmission.

This is the global debut for the new powertrain, which is expected to spread through the Hyundai and Kia line-up.

As previously reported, there are very solid indicators it will be the first electrified powertrain to be added to the Kia Tasman ute line-up.

Hyundai says despite delivering greater performance than the outgoing 3.8-litre V6, the new engine averages 6.8L/100km.

This is better efficiency than the previous 2.2-litre turbo-diesel, which powers the Tasman and the previous generation Palisade.

However, the new hybrid powertrain is only able to tow up to 2000kg in Palisade. That won’t be acceptable for Tasman and is no doubt being worked on.

Down the track the Palisade is expected to be offered with other hybrid and non-hybrid variants of the 2.5-litre turbo, including a front-wheel drive version for a lower price point.

The Palisade launches with vehicle-to-load (V2L) charging that can power household appliances and tools.

A new Stay Mode allows the hybrid battery to power the infotainment and climate control while the engine is off, making the large SUV an ideal car camping companion.

As standard, the new Palisade Calligraphy Hybrid comes with eight-seats, but a second more luxurious seven-seat configuration can be optioned which swaps out the second-row bench for a pair of captain chairs for $1000.

Those new chairs, dubbed Relaxation Comfort Seats, can tilt by 16 degrees and are both heated, feature electric adjust and pivot forward to allow access to the third row.

The final row of seats is also both heated and reclining and can slide forward and back to maximise either legroom or luggage space.

Ahead of the driver are dual-12.3-inch screens that are supported by a 12-inch head-up display.

The Palisade Calligraphy Hybrid also features a 14-speaker Bose premium sound system, wireless charging pads and up to six 100W USB-C ports, plus another charging and data USB-C port in the centre console.

When it lands in dealers, buyers will have the choice of eight exterior paints and four interior trims. Large 21-inch alloy wheels are standard.

The flagship Hyundai comes with the car-maker’s latest Smartsense safety tech that offers its advanced adaptive cruise control.

Pricing for the previous Palisade spanned from $66,800 for the entry Elite V6 and stretched to $81,719 for the Calligraphy Black Ink with the all-wheel drive turbo-diesel power.

Despite the price increase, the Palisade Calligraphy Hybrid is still significantly cheaper than the Mercedes GLS, BMW X7 and Audi Q7.

But it is more expensive than rivals from mainstream brands such as the Mazda CX-90 G50e SP Azami ($100,370 before on-road costs), the Toyota Kluger Grande ($83,535 plus ORCs) and the Kia Sorento PHEV GT GT-Line ($84,660 plus ORCs).