The upcoming second-generation Hyundai Palisade is set to revolutionize the large SUV segment by eliminating diesel power entirely and adopting a four-cylinder petrol-only strategy. This strategic shift aligns with the broader automotive industry’s move toward more efficient powertrains and compliance with Australia’s New Vehicle Efficiency Standard (NVES).
Engine Lineup Transformation
Farewell to Diesel and V6 Power
The 2026 Palisade will completely abandon the current 2.2-litre four-cylinder turbo-diesel engine that powers the existing model. Additionally, the 3.8-litre V6 petrol option will also be discontinued, marking a significant departure from traditional large SUV powertrains.
New Turbocharged 2.5-Litre Engine
The heart of the new Palisade will be a turbocharged 2.5-litre four-cylinder petrol engine, offering two distinct configurations:
- Standard Petrol: 207kW power output with 422Nm torque
- Hybrid Variant: Enhanced 246kW power with additional electric motor assistance
Technical Specifications Comparison
| Specification | 2025 Diesel | 2025 V6 | 2026 Petrol | 2026 Hybrid |
|---|---|---|---|---|
| Engine | 2.2L Turbo-Diesel | 3.8L V6 | 2.5L Turbo | 2.5L Turbo + Electric |
| Power | 147kW | 217kW | 207kW | 246kW |
| Torque | 440Nm | 355Nm | 422Nm | 353Nm + 264Nm |
| Transmission | 8-Speed Auto | 8-Speed Auto | 8-Speed Auto | 6-Speed Auto |
| Drive Type | AWD | FWD | FWD/AWD | FWD/AWD |
| Fuel Economy | 8.6-8.8L/100km | 10.8-11.1L/100km | 10.3-12.2L/100km | TBA |
Physical Dimensions and Design
Expanded Proportions
The 2026 Palisade has grown significantly across all dimensions:
- Length: Increased from 4,995mm to 5,060mm (+65mm)
- Width: Expanded from 1,975mm to 1,980mm (+5mm)
- Height: Raised from 1,750mm to 1,805mm (+55mm)
- Wheelbase: Extended from 2,900mm to 2,970mm (+70mm)
Contemporary Design Elements
The new Palisade features distinctive ‘pixel’ lighting elements with five wide daytime running light segments, complemented by headlight clusters that integrate seamlessly with the grille design. New exterior colors include Ecotronic Grey Pearl, Cast Iron Brown Pearl, Galaxy Maroon Pearl, and Crazy Blue Pearl.
Interior Innovation
Advanced Technology Integration
The cabin showcases modern technological advancement with:
- Dual 12.3-inch screens: Digital instrument cluster and infotainment touchscreen
- Premium materials: Striated wood-look trim with ambient lighting
- Practical layout: Physical buttons for essential functions, intuitive climate controls
Flexible Seating Configuration
South Korean markets will offer both seven and nine-seat configurations, though Australian deliveries will likely focus on the seven-seat variant to meet local preferences.
Market Impact and Pricing
NVES Compliance Challenges
The transition to four-cylinder petrol power presents challenges under Australia’s New Vehicle Efficiency Standard, which began on January 1, 2025. The new engine’s higher fuel consumption and emissions compared to the outgoing diesel may result in increased penalties under the NVES framework.
Expected Pricing Structure
South Korean price increases of 10-15% suggest Australian pricing could exceed $70,000 for entry-level variants, representing a significant premium over the current range starting at $66,800.
Australian Market Availability
Hyundai plans to begin Australian deliveries of the new Palisade in 2025, positioning it as a premium family SUV option in an increasingly competitive market segment.
Frequently Asked Questions
Q: When will the 2026 Palisade arrive in Australia?
A: Australian deliveries are expected to commence in 2025, with exact timing to be confirmed by Hyundai Australia.
Q: Will the diesel option be completely discontinued?
A: Yes, the 2026 Palisade will be petrol-only, eliminating both diesel and V6 options from the lineup.
Q: How much will the new Palisade cost?
A: Pricing is expected to start above $70,000, representing a 10-15% increase from current models.
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