The Hyundai Palisade has earned its place as one of Australia’s most-loved large SUVs. Spacious, reliable, and family-friendly, it’s carved out a niche for drivers who want comfort and flexibility. But by late 2025, the Palisade will enter a new era—with its classic V6 petrol and turbo-diesel options gone, replaced for the first time by hybrid and four-cylinder turbo powertrains. Here’s what’s changing and what it means if you’re considering the new Palisade.
The Powertrain Shake-Up: Why Hybrid and Four-Cylinder?
For years, the Palisade’s big 3.8-litre V6 and 2.2-litre turbo-diesel offered plenty of muscle for family adventures or towing on holiday road trips. So, why the change? Hyundai is embracing the shift towards more efficient and lower-emissions vehicles—a trend driven by stricter environmental regulations and evolving customer expectations.
The new 2026 Palisade will offer:
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A 2.5-litre turbocharged four-cylinder petrol engine (available both as a non-hybrid and a hybrid)
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Front-wheel drive (FWD) and all-wheel drive (AWD) options
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No diesel or V6 options—these have been discontinued
Hybrid versions are expected to be more powerful than the outgoing diesel and nearly match or surpass the previous V6’s performance, all while using less fuel and producing fewer emissions.
Performance & Efficiency: What Can You Expect?
Hybrid Powertrain
The Palisade hybrid pairs Hyundai’s 2.5-litre turbocharged four-cylinder with an electric motor and lithium-ion battery. Overseas, this setup generates up to 258hp (245kW) and 339lb-ft (460Nm) of torque—beating out the old diesel’s 147kW/440Nm and the V6’s 217kW/355Nm.
While official Australian specs may see slight variations, you can confidently expect:
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Smoother acceleration
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Better economy—estimated average consumption is 8.8L/100km (barely more than the outgoing diesel)
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Lower emissions—important for city driving and environmentally conscious families
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AWD and FWD layouts, with both seven- and eight-seat configurations
2.5-Litre Turbocharged Petrol (Non-Hybrid)
If you aren’t ready for a hybrid, the conventional 2.5-litre turbo petrol is sticking around. Already seen in models like the Hyundai Sonata N Line, it delivers a solid 213kW/422Nm. This engine promises brisk performance and will be available in both seating configurations and with the option of all-wheel drive.
No Diesel & No V6: What’s the Impact?
For Towing & Heavy Loads
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The end of diesel will be the biggest adjustment for those who relied on its famous low-end torque for towing caravans or boats.
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However, the hybrid outperforms even the diesel in torque and matches or exceeds V6 petrol figures, so performance for towing and load-hauling should remain robust.
For Everyday Driving
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Both new powertrains will be quieter, with smoother power delivery, ideal for stop-start city traffic and long highway journeys.
On Running Costs
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Hybrids are expected to offer meaningful savings at the pump, especially for those clocking up lots of urban kilometres.
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Less reliance on diesel means lower emissions—a win for the environment and potentially a future resale value advantage as Australia’s emissions rules tighten.
Bigger, Roomier, Even More Premium
Hyundai hasn’t just stopped at changing engines. The next-gen Palisade will come with:
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A bigger body, now 65mm longer, and a 70mm stretched wheelbase, promising even more legroom in all three rows.
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Upgraded tech, like a 12.3-inch digital instrument cluster and 12.3-inch infotainment touchscreen.
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Premium touches throughout the cabin, including ‘pixel’ lighting and higher-quality trim for all model grades.
And if you loved the flexibility before, don’t worry—both seven-seat and eight-seat layouts are still on the menu.
Pricing & Availability: What Will It Cost?
While official pricing will be released closer to launch, Australian buyers can expect the Palisade HEV (hybrid electric vehicle) to be priced in line with, or slightly above, the outgoing diesel. Overseas, hybrids are priced about $1,500 more than equivalent petrol models.
Expect hybrid and turbo-four petrol Palisades to hit Australian showrooms between October and December 2025.
Frequently Asked Questions
Is the new Palisade good for towing and long-distance travel?
Yes, especially the hybrid. It delivers higher torque than both the old diesel and V6 petrol, promising ample muscle for family getaways, caravan adventures, or heavy loads.
What about safety and technology?
Hyundai is known for class-leading safety, and the Palisade will continue this tradition. Expect the latest safety features and driver-assistance technology—likely including wireless over-the-air updates for critical systems and enhanced autonomy in future upgrades.
Will the hybrid cost more to maintain?
Generally, hybrids require less servicing than traditional diesels, especially as there is no need for exhaust after-treatment or particulate filters. Expect similar or lower running costs.
Who Is the New Palisade For?
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Families wanting a versatile, roomy, and easy-to-live-with SUV
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Eco-conscious drivers who want to lower their environmental footprint
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Urban and regional Australians looking for a quiet, efficient commuter with seven or eight seats
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Adventurers needing a strong tow rating and AWD for those off-the-beaten-track trips
The only ones left out might be die-hard diesel fans—but unless you’re wedded to the smell and feel of diesel, the new options should serve just as well, if not better.
Final Thought: Embracing the Future
The next-generation Hyundai Palisade isn’t just keeping up with the times—it’s setting the pace among three-row SUVs. If you’re ready for a modern, efficient, and even more luxurious family hauler, the 2026 Palisade deserves a spot at the top of your shopping list.