2026 Hyundai Palisade to ditch diesel: New family SUV detailed

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Diesel power will be dropped from the new-generation 2026 Hyundai Palisade large family SUV – and replaced by a petrol-electric hybrid – when it arrives in Australia in 2025.

The Palisade will follow the smaller Santa Fe in swapping diesel for hybrid power, despite the conventional fuel type accounting for more than 80 per cent of sales at points in its life cycle.

The petrol V6 is also set to be axed by Hyundai, replaced by a new 2.5-litre turbo-petrol four-cylinder engine that forms the basis of the new hybrid system.

MORE: 2026 Hyundai Palisade revealed, expected in Australia next year

Prices are due to be confirmed closer to launch in Australia, which is expected sometime in 2025 – with timing yet to be confirmed by Hyundai.

However, increases are expected over the $66,800 to $79,988 plus on-road costs price range of today’s model.

In South Korea an optioned-up, top-of-the-range petrol Calligraphy costs close to 15 per cent more than before – with a larger body and additional equipment – while more affordable models are up closer to 10 per cent.

It could see the cheapest model in Australia start from more than $70,000 before on-road costs, and the top-of-the-range hybrid priced close to $95,000 before on-road costs – or $100,000 drive-away.

2026 Hyundai Palisade dimensions and design

The new Palisade measures 5060mm long, 1980mm wide and 1805mm tall, on a 2970mm wheelbase (distance between the front and rear wheels).

It is 65mm longer overall, 5mm wider, 55mm taller and 70mm longer between the wheels than the previous model, and larger than all of its competitors bar the Mazda CX-90 and Jeep Grand Cherokee L.

As previously reported, the new Palisade bears a styling resemblance to recent full-size Range Rover SUVs, with boxier proportions than before, bold striped LED headlights and tail-lights, and distinctive metallic rear window pillar trim.

There is a choice of 18-, 20- and 21-inch alloy wheels in South Korea, plus new paint colours such as Robust Green Pearl pictured here, plus Ecotronic Grey Pearl, Cast Iron Brown Pearl, Galaxy Maroon Pearl and Crazy Blue Pearl.

2026 Hyundai Palisade features and interior

Inside, flagship models combine two 12.3-inch screens into a curved panel stretching ahead of the driver, with Apple CarPlay, Android Auto (likely wireless), satellite navigation, and an artificial intelligence-powered voice assistant.

Hyundai has retained traditional dials for air temperature control, but seat heating, fan speed and other functions run through a small touchscreen.

South Korean buyers can choose between seven-seat and nine-seat configurations, the latter with a three-seat front bench – allowing the Palisade to use bus lanes in its home country.

It remains to be seen if this layout is brought to Australia. The current model offers a choice of seven or eight seats locally.

Top-of-the-range models are available with heating and power adjustment for all three rows of seats, as well as ventilation for the first and second rows, a heated steering wheel as standard, and power steering column adjustment.

Standard on the cheapest model in South Korea is three-zone climate control, keyless entry and start, seven 100-watt high-power USB-C ports, wireless phone charging, and an eight-speaker stereo.

Also included on the base grade are eight-way power-adjustable front seats, heated and ventilated front seats, heated sliding and reclining second-row seats, and a heated leather steering wheel.

Higher model grades add nappa leather upholstery, suede headlining, an 18-way power-adjustable driver’s seat, a fingerprint reader to start the engine, head-up display, and a 14-speaker Bose sound system.

As with the Santa Fe, there is an available UV-C sterilisation function that can kill bacteria on items placed in the glovebox.

A full suite of advanced safety features is available, including Highway Driving Assist 2, which allows for automated lane changes on recognised motorways, in addition to adaptive cruise control and lane-centring functionality.

2026 Hyundai Palisade engines

Powering the non-hybrid Palisade is a 2.5-litre turbocharged four-cylinder petrol engine, developing 207kW and 422Nm – matched with an eight-speed automatic transmission and front-wheel drive (FWD) or all-wheel drive (AWD).

It is down on power, but up on torque from the outgoing 217kW/355Nm 3.8-litre petrol V6.

Despite losing two cylinders and adding a turbocharger, a larger and heavier body means the new turbo Palisade is little more efficient than the model it replaces.

Fuel consumption is rated at between 10.3 and 12.2 litres per 100 kilometres in mixed conditions based on South Korean lab testing, depending on variant – compared to 10.8 and 11.8L/100km for the V6.

Some variants (front-wheel drive grades with 18-inch wheels) are up to 5 per cent more frugal (10.3 vs 10.8L/100km), but others (AWD with 20-inch wheels) use up to 4 per cent more fuel than before.

CO2 emissions per kilometre for some variants have increased, something that will not help Hyundai under new tailpipe pollution standards coming to Australia in 2025.

Coming to the rescue will be a hybrid variant, which combines a 193kW/353Nm version of the 2.5-litre turbo engine with a 54kW/264Nm electric motor.

It produces 246kW combined – more than any other petrol-powered Hyundai on sale, and compared to 172kW in the 1.6-litre turbo Santa Fe Hybrid – matched with a six-speed automatic.

Hyundai is yet to confirm fuel consumption for the hybrid, but in the Santa Fe, the petrol-electric variant cuts fuel use by 40 per cent.

It spells the end for the 147kW/440Nm 2.2-litre turbo-diesel engine, which consumed 8.1 to 8.8L/100km in South Korean lab testing.

The new Palisade is believed to be the first modern-era, non-N Hyundai to offer the option of adaptive suspension, said to be capable of reading the road ahead using cameras, and adjusting its firmness accordingly.

More details of the 2026 Hyundai Palisade are due closer to its Australian launch, expected in 2025.

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