Audi Q3 vs Hyundai Palisade

What's the difference?

So is this new Q3 good enough to remain Audi’s number one choice? In a word, yes.

Audi has resisted the temptation that some brands fall into by making too many changes to a proven sales performer. This new Q3 isn’t radically different from the old Q3, but it has improved in almost every way.

It isn’t different enough to widely expand its appeal to a new wave of customers, but there’s no reason it won’t remain Audi’s most popular choice for the foreseeable future.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

The new hybrid powertrain for the Hyundai Palisade is a welcome addition for families looking for an efficient three-row SUV that doesn’t drive like a brick and looks good at the school pick up or client lunch. Overall, the Palisade remains a solid, all-round package that deserves praise and the eighth seat is an added bonus.

The brief to the designers was seemingly pretty simple - don’t mess with a good thing.

According to the company, they want it to be recognisable as an Audi from 100m away, but at the same time, it makes sense not to make any radical changes to a design that is clearly a hit with buyers.

There’s still a new grille, which is slightly larger, while the daytime running lights (DRLs) are now mounted high, on the top corners of the front fascia.

Audi prides itself on its lights and the Q3 features multi-segment DRLS, with dynamic light effects, plus the rear badge lights up red with the tail-lights are turned on.

Digital matrix LEDs are available as an option on the quattro grades, which is a first for such a small Audi. While based on the technology already deployed in the bigger, more expensive Audi models, this is an updated system with micro LED matrix capabilities that are better able to light up the road ahead without blinding cars ahead or oncoming.

One very noticeable element to the design of this new Q3 is the size - which hasn’t really changed. Audi has resisted the temptation that so many brands have to upsize a compact model and has instead retained the same size that buyers clearly find appealing. It is slightly longer, approximately 4cm, but is still unmistakably a Q3 in looks and size.

Inside the Q3 is a different story, with the designers clearly empowered to create more change. The elements remain similar, but there have been more dramatic changes compared to the exterior to keep the Q3 looking contemporary and luxurious.

For example, there are still two large screens, just like the old model, but the virtual cockpit and multimedia screen are integrated into the dashboard together and more prominently, moving higher up the centre fascia.

It works well, as the interior looks and feels premium, and very much an Audi, albeit on a smaller scale.

To cap it off there are four interior colour packages to choose from, plus four different choices for the inlays, including two real wood options and an aluminium trim.

The Hyundai Palisade leans heavily into a more American look. It’s unapologetically big and boxy, with a squared-off silhouette that makes no attempt to hide its size. Up front, there’s a bold grille flanked by oversized vertical LED light signatures, while the rear mirrors that same stacked lighting design. The bonnet is long, the proportions are broad and everything about it is geared towards presence.

The dark-tinted windows, clean body panels and metallic accents gives it a polished edge. It’s the kind of SUV that feels as much at home at a client lunch as it does in the school pick-up line.

Inside, the cabin is genuinely spacious and even without a sunroof, it doesn’t feel closed in. The dashboard has a softly curved, vertical layout that keeps things feeling open rather than bulky.

Thankfully, Hyundai hasn’t gone all in on touch controls and there are still plenty of physical buttons to fiddle with. You’ve got dual 12.3-inch displays and a 14-speaker Bose sound system doing the heavy-lifting with the 'visual' tech side of things.

Thickly padded touchpoints and premium materials round out a cabin that's simply a pleasant space to spend time in.

The biggest change to the interior is the technology, with a new multimedia interface with new, larger tiles as well as new ‘Control Unit’ for the key driving functions.

The ‘Virtual Cockpit’ display is much simpler, with a nice, clean look, plus the option to have the satellite image on the screen, whether you’re in navigation or not. The multimedia screen is a good size (12.8 inches) and the menus are easy to navigate. The decision not to have physical controls for the climate control is disappointing, but thankfully there is a volume/on-off dial for the sound system.

The most notable difference is the so-called ‘control unit’ that integrates the indicators, wipers and gear selector on a single ‘bar’ mounted to the steering column. It’s another example of modern cars reinventing something we’ve all become accustomed to, but after a day of driving it quickly becomes second nature to adapt to the slightly different controls.

While it may be the same size, Audi has managed to find more room inside, particularly the rear, by redesigning the door pockets and sculpting out the seat backs. It’s still not the roomiest cabin, but the rear seats will be fine for younger families, couples and singles.

Another plus is the 40:20:40 split/fold rear seats for maximum practicality and adaptability, while all three have child seat anchor points (although if you do have three small children, I wouldn’t be recommending an SUV this size). 

As for the boot, because Audi only measures to the top of the seats, it measures 488L in both the SUV and Sportback variants, so you’re not missing out on day-to-day practicality with the sportier-looking roof. However, if you drop the rear seats the cargo capacity expands to 1386L in the SUV but only 1289L in the Sportback.

Practicality is one of the Hyundai Palisade’s strongest points, and it starts up front. The first row is properly cavernous and, unless you’re the Hulk, you won’t be knocking elbows with your passenger. The seats themselves are wide, deep and well cushioned, making them an easy place to spend a few hours on the road.

The second row continues that theme of space. It’s wide enough to comfortably fit three adults. I tested that with three friends over a weekend trip and no one complained. That said, the bench-style seat does mean less defined support. My nine-year-old pointed out he tends to slide around a bit and that the cushioning is on the firmer side.

Unsurprisingly, the third row is usable but with some compromise. You can fit three small kids or two adults, though legroom is tight unless you slide the second row forward.

Access to both rear rows is easy thanks to the wide door openings and relatively low step-in height, which makes a difference when you’re loading kids in and out.

Amenities across all three rows are well thought out. Up front, you’ve got a good mix of storage options like a large glovebox and centre console, two cupholders, two drink bottle holders, and a handy open shelf that’s ideal for a handbag or Saturday night's takeaway. Charging is taken care of by three USB-C ports, a 12-volt socket and a wireless charging pad.

The second row gets four cupholders, a couple of bottle holders and map pockets, as well as a small drawer that's a good size for snacks or smaller devices. In the second row there’s also climate control, ceiling-mounted air vents and two USB-C ports.

Even the third row doesn’t feel like an afterthought. There are two USB-C ports, four cupholders, directional air vents, plus two ISOFIX points and two top-tether anchors for families juggling car seats.

Tech is easy to live with. The media system is intuitive, the touchscreen is responsive and you get wireless Apple CarPlay and Android Auto alongside built-in navigation. Hyundai’s Bluelink app also allows for remote functions like pre-conditioning the cabin or checking the car’s location, which comes in handy more often than you’d think.

Boot space is another win. With the third row folded, you’ve got up to 712L to work with, and the flat loading area makes it easy to slide in prams, sports gear or a full grocery run. There’s also a bit of underfloor storage for smaller items, along with a full-size spare and a powered tailgate in this grade.

The Hyundai Palisade range is fairly straightforward, offered in two trim levels. We’re looking at the recently added mid-spec Elite here, which sticks with an eight-seat layout and is priced from $76,500 before on-road costs. Step up to the flagship Calligraphy and you can choose between seven or eight seats, depending on how often you’re playing chauffeur.

Price-wise, the Palisade Elite hybrid does sit above its perceivd rivals. The Toyota Kluger GXL Hybrid starts from $71,930 MSRP, while the smaller Kia Sorento Sport+ Hybrid undercuts it more noticeably again at $67,180 MSRP. So yes, you are paying a premium here, but the Hyundai is quite a bit bigger than those two models.

That said, the features list does a decent job of justifying it. You get leather-appointed upholstery, power-adjustable front seats with heating, a heated steering wheel and power-folding outboard seats in the second row, all things that make day-to-day family life a bit easier.

Tech is another strong point. There’s a 14-speaker Bose sound system, dual 12.3-inch displays, built-in navigation, over-the-air updates and three-zone climate control. Charging is well covered too, with six 100W USB-C ports, an additional data port, two 12-volt sockets and a wireless charging pad.

There are a few newer touches worth mentioning. A fingerprint authenticator can store up to two users, which is handy if the car gets shared, and this generation also introduces two digital keys. You also get access to Hyundai’s Bluelink app, which allows for remote functions like pre-conditioning the cabin, locking or unlocking the car and checking its location.

On the practicality front, there’s a full-size spare alloy wheel, a 360-degree camera system and a powered tailgate. Families will also love the four ISOFIX child seat mounts and five top-tether anchor points.

As mentioned above, there are three powertrains to choose from initially, with talk of a plug-in hybrid and hi-po RS Q3 just that (talk) for now.

The entry-level SUV and Sportback get a new 1.5-litre four-cylinder mild-hybrid, turbocharged petrol engine, which makes 110kW/250Nm and sends all that performance to the road via the front wheels through a seven-speed, dual-clutch automatic transmission.

Next up is the TFSI 150kW quattro, which is a bigger 2.0L turbo-petrol four-cylinder, producing (you guessed it) 150kW and 320Nm. It also has a seven-speed dual clutch but also unsurprisingly has a quattro, aka all-wheel drive.

Finally there’s the TFSI 195kW quattro, which has the same engine but tuned to make 195kW and 400Nm, also with the seven-speed, dual-clutch auto and all-wheel drive.

This is naturally the quickest Q3, at least until the RS Q3 arrives, taking just 5.7 seconds to accelerate 0-100km/h, compared to 9.1 seconds for the 110kW and 7.1 seconds for the 150kW.

Under the bonnet, the Hyundai Palisade has made the full switch to hybrid, with the same powertrain offered across both trim levels. It pairs a 2.5-litre four-cylinder turbo-petrol engine with an electric motor, sending power to all four wheels.

Combined outputs sit at 245kW and 460Nm, which is a noticeable step up from the outgoing V6 petrol and 2.2-litre diesel it replaces.

On the road, the six-speed automatic does a smooth job of working through the gears, and the hybrid system keeps things impressively quiet at lower speeds. You’ll still notice the transition when the petrol engine cuts in, but it’s not especially intrusive.

It also retains a braked towing capacity of 2000kg, which should be enough for smaller weekend toys.

While it may only be a mild hybrid, Audi has done its best to make the TFSI 110kW as fuel efficient as possible. To that end, in addition to the hybrid help this new 1.5-litre engine also features cylinder-on-demand.

The result is a claimed combined cycle fuel use figure of 5.7L/100km for the entry-level model.

Naturally the more powerful engines require more petrol. The 150kW models are rated at 7.3L/100km, while the 195kW has a claimed 8.1L/100km.

It’s worth noting that all three engines require a minimum 95 RON ‘premium’ fuel, which will only add to the cost at the pump in these times of high prices.

The 110KW/150kW models are fitted with a 55-litre fuel tank, while there is a bigger 60-litre tank for 195kW. That means theoretical driving ranges of approximately 960km for the 110kW models and just over 740km for the 150kW and 195kW offerings.

The new hybrid Hyundai Palisade has an official combined fuel cycle figure of just 6.8L/100km and a 72L fuel tank, giving this a theoretical driving range of just over 1000km, which is excellent for a big family mover. My real-world use, after doing a solid mix of open road and urban driving this week, is 7.7L/100km which is a decent result, especially given I’m not shy about utilising power!

While it may not be an RS model or a more dynamic sedan, part of the price premium you pay for an Audi is a more polished driving experience.

With that in mind, what Audi calls ‘Progressive steering’ (which is a variable ratio steering rack) is now standard across the range. This decision was driven by a desire to make the Q3 feel ‘more hatch-like’ to drive, being more responsive to driver inputs.

It certainly felt quite nice to drive at the launch, where we drove across a wide variety of conditions, including long stretches on winding mountain roads. The 110kW Launch Edition was enjoyable to drive in these conditions, even if the other two options offer a sportier driving experience with their extra power and all-wheel drive.

It should be noted again, we only drove Q3s fitted with adaptive dampers as those are included on the Launch Edition, so we can’t tell you how the true entry-level TFSI 110kW model rides and handles.

One minor concern was there were some rattles in one of the three cars we tested, centred around the dashboard and front doors. It’s notable because we have experienced similar potential build-quality issues with Volkswagen and Skoda products recently. This raises some questions about an area Volkswagen Group products have traditionally excelled in.

Having said that, it was only a problem in one of the three cars we drove, so it could be an isolated incident. But it’s something we will have to keep an eye and ear open to in future test drives.

On the move, the Hyundai Palisade hybrid system feels like a worthwhile addition. Power delivery is smooth and there’s enough on tap to keep up with traffic without any stress. You’ll occasionally notice the transition between electric and petrol power, particularly when accelerating harder from a standstill, but it’s otherwise fairly well resolved.

Where the Palisade really shines is in comfort. It’s an easy cruiser, whether you’re on the highway or just doing the school run. The suspension strikes a nice balance as it’s well-cushioned without feeling overly soft, and there’s enough road feedback to stop it from feeling floaty. For something this size, body roll is also kept in check, so it doesn’t feel out of its depth on a winding road.

Around town, it’s just as easy to live with. The steering has a reassuring weight to it and feels responsive enough, while visibility from the driver’s seat is excellent. You sit high, with a clear view out the front and sides.

The only real quirk is that the regenerative braking can feel a little firm at lower speeds, particularly in stop-start traffic, and it takes a bit of adjustment to smooth things out. But it’s not a deal breaker.

Cabin noise is kept impressively low, even at highway speeds, making it easy to hold a conversation across all three rows, something my passengers appreciated on a recent weekend trip.

Despite its size, it’s not as intimidating to manoeuvre as it looks. The turning circle is a relatively tight 11.94 metres, and the 360-degree camera system does a lot of the heavy lifting when parking. You’re still aware of its footprint in tighter spaces, but it’s far from cumbersome.

The Hyundai Palisade holds a five-star ANCAP safety rating from testing conducted in 2025, and comes equipped with eight airbags, including curtain airbags that extend across all three rows.

The safety suite is comprehensive, covering most of the expected bases. You get blind spot monitoring, lane keeping assist, lane departure warning, forward collision warning, a 360-degree camera system, front and rear parking sensors, rear cross-traffic alert and side exit assist.

There are a couple of omissions worth noting. It misses out on emergency call functionality, and there are no seatbelt reminders for the two middle seats in the second and third rows.

The adaptive cruise control isn’t well-calibrated as it slows down firmly on hills, up to 10km below the set speed limit, which is better than going over the limit but still makes the system feel a bit clunky in real-world use.

Autonomous emergency braking with pedestrian, cyclist and motorcyclist detection is operational from 5.0-85km/h, and up to 130km/h for vehicle detection.

For families, there’s solid flexibility with four ISOFIX child seat mounts and five top-tether anchor points, making it well set up for multiple child seats across the rear rows.

The Q3 is covered by Audi Australia’s standard five-year/unlimited kilometre warranty. This includes five years of roadside assistance too.

There is a standard five-year servicing plan for $3300, which is the same as the outgoing model, with servicing required every 12 months or 15,000km, whichever comes first.

Audi has an expansive, nationwide dealer network befitting its place as an established sales leader in the premium space.

Ownership for the Hyundai Palisade is fairly straightforward and competitive for the segment. It’s backed by Hyundai’s five-year, unlimited-kilometre warranty, which can be extended by a further two years if you service exclusively through the brand.

Servicing costs are also reasonable for a large SUV. You can pre-purchase a three-, four- or five-year plan, with the latter coming in at $2630, which stacks up well against similar rivals.

Intervals are set at every 12 months or 10,000km, and with more than 100 service centres across the country, access shouldn’t be an issue for most owners.