What's the difference?
The updated Audi Q7 is a bit of a game of ‘spot the difference’ - but even though it’s far from a new generation, the update is more than just some shiny new bits.
While the brand’s first SUV is still in its second generation, a bit of modernised design and some tech tweaks are aimed at keeping it in line with rivals, even as it nears a decade on sale.
As well as the new features, there’s also a new variant bound for Aussie showrooms. So, is it still up to the task?
The line between mainstream and luxury is getting blurier by the day. As cost-of-living pressures bite Australian families, anyone looking for a new car is looking to extract maximum value without sacrificing too much luxury.
Enter the new 2026 Hyundai Palisade Calligraphy. Sporting a bold and premium new look, loaded with more luxuries than ever before and powered by a new hybrid powertrain, the second-generation Palisade is a clear step forward from its predecessor.
As it should be, because it’s also significantly more than the previous Palisade Calligraphy. That puts it in the same ballpark as the Mazda CX-80 and range-topping Toyota Kluger, but it also means the Palisade is now no longer enormously cheaper than premium SUV options, such as the Land Rover Defender, Lexus RX and Volvo XC90.
So, is the new Palisade a luxury mainstream family transporter or a premium-priced SUV without the premium badge? We drove it to find out…
Overall, changes to the Q7 aren’t quite revolutionary, but that’s okay because it was already a fantastic large SUV.
The fact Audi has kept the price around the same mark and introduced a cheaper entry-grade should be welcome news for prospective buyers.
But even the existing variants are capable and impressive family haulers… and now they’re just that little bit better.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
So, is the new Palisade a luxury mainstream family transporter or a premium-priced SUV without the premium badge?
The reality is, it’s somewhere in the middle. The $14,000 price rise is a huge step up for family buyers, likely an insurmountable sum for many, which leaves them looking at the more affordable (but smaller) Santa Fe, waiting for a cheaper Palisade variant or going somewhere else entirely.
Having said all that, there’s no question, for those who can afford it, the new Palisade is a clear upgrade over the old model in every way. Especially the premium look and feel, which is a leap up, but also the driving experience, with its combination of potent but efficient powertrain and locally-tuned suspension.
So, for those who can afford it, the Palisade Calligraphy will provide a luxury experience at a lower price - which means it does offer good value, just at a higher price.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
The phrase ‘evolution not revolution’ is applicable here, cliche as it is, with the Q7 having been given a Botox-style lift at the front end.
The standard matrix LED headlights have a higher lighting signature than before, with the lighting elements leading into the lines down the shoulder of the SUV.
The grille now features a hexagonal honeycomb insert, the vertical line styling is now a thing of the past and the functional side vents are a little more aggro.
Overall, it’s a sharper look that brings the Q7 up to date with Audi’s current design language, down to the more angular wheel choices.
At the rear, the new tail-lights are ‘joined’ via a chrome strip spanning the rear, and the lower bumper (with real exhaust exits) has had a refresh.
Audi’s new CI badging (or ‘corporate identity’, pretty sexy stuff) is also present, which includes a new typeface for the ‘Q7’ badge at the rear, which is no longer italicised and is separate from the red ‘S line’ rhombus.
The four rings badge is also flatter and is white with black outlines, rather than a three-dimensional chrome badge.
Inside, the changes are more than skin-deep. In fact, the skin is the same, you’d be hard pressed to notice anything different about the Q7’s interior between pre- and post-facelift without diving into the electronics.
Unlike many of its rivals that adopt a common design theme, Hyundai has made sure each of its models is dramatically different visually.
While there are some common elements that tie them together, comparing the new Palisade to the rest of Hyundai’s SUV range it’s clearly very different.
For the Palisade that means a deliberately big and bold exterior, with the vertically stacked headlights and large grille to create a unique look compared to either the Santa Fe or Ioniq 9. It’s the same at the rear, with more vertically stacked tail-lights.
That bold, premium design theme carries over to the interior, where there are some unmistakable Hyundai elements - like the steering wheel - but the soft, curved lines of the dashboard give it a distinct look compared to anything else the brand is offering at the moment.
Hyundai says the interior is inspired by premium furniture design and that rings true, but it’s also a noticeably tall dashboard, which gives a lot of visual depth to the interior.
To emphasise the premium furniture design and the flagship-nature of the Calligraphy, there are four different colour options for the Nappa leather interior - black, brown, dark charcoal (with brown stitching) and light grey/dark navy.
Audi has changed the layout and added new apps in the main 10.1-inch multimedia touchscreen, though fortunately it still has shortcuts to all the Big Dogs in terms of functions: media, navigation, phone, etc.
On top of that, everything is still in big, easy-to-see (and press) blocky buttons on the main screen.
The 8.6-inch screen below also still has climate controls readily available, and there are still physical buttons for a bunch of functions including drive modes.
The wide 12.3-inch driver display also remains familiar, though now has a higher resolution and more functionality in terms of on-road help and safety - which we’ll come to later in this review.
Aside from the tech, ‘spacious’ is an understatement when it comes to the big Audi’s cabin. In the front seats especially, the Q7’s central tunnel and dashboard are easy to reach without feeling like an enclosure as they wrap around the front passengers.
However, if I had to level one criticism at the usefulness of the Q7’s front row, it would be that despite there being physically plenty of room, storage is at a premium.
For something this big, there aren’t many places to put items that aren’t your phone or a drink.
There are door card holders for bigger bottles, some space for small items, and the cupholders of course, but the space under the central armrest including the phone charger is stingy.
Fortunately, the second row is not lacking space and is modular in its adjustability. Occupants can move seats, adjust their angle, and even sort out the middle seat separately.
Depending on how high up the variant chain you go, separate climate controls for the middle row and the panoramic sunroof help create a comfortable and roomy feeling.
The second row can also be tucked up behind the front row for easier access to the third row, which (if the second row is slid forward a tad) is just spacious enough for an average adult to be relatively comfortable for a short trip.
The third row seats are able to be folded or raised with switches that are accessible from the side doors or the (electric) tailgate, where there’s also a switch to lower or raise the rear suspension by 55mm to aid loading.
On that, the Q7 has a claimed luggage capacity of roughly 295L with all seats up, 780L with the third row folded down and 1908L with the second row lowered.
The new Palisade is bigger in every dimension compared to the old model, and that helps translate into a roomy cabin, which in turn does help make it feel more premium.
As mentioned earlier, the Palisade comes with Hyundai’s Digital Key 2.0, which allows you to have a virtual key on your compatible smartphone, so you can lock/unlock and start the car without a physical key. The new fingerprint scanner, which is a small circular scanner in the centre console, allows you to program your Palisade to start by pressing your finger on the scanner.
While the Digital Key is a great concept and has obvious practical benefits, the fingerprint scanner doesn’t make much sense when you can also start the car by pressing the ‘start’ button.
Anyway, once you’re inside, the driver is treated to Hyundai’s ‘Ergo-motion’ seat, which can provide on-the-go massage. Both front seats are the brand’s relaxation seats, which can recline into a more comfortable position if you need to take a nap (obviously not when you’re driving).
In the second row the Palisade comes standard with a three-person bench, but for $1000 you can swap that out for a pair of captain’s chairs. Hyundai expects the split between these to be an even 50-50.
The third row is also a three-person bench, which means the Palisade can accommodate up to eight occupants, if needed. The third row would only accommodate three adults at a squeeze, but would be fine for younger children.
The second row seats can tilt out of the way at the press of a button, to make getting into the third row easier.
What’s really impressive about the Palisade Calligraphy cabin is the level of detail paid to making sure each seat is well looked after. Naturally there are cup/bottle holders and other small item storage spaces, but both the second and third rows get air-conditioning controls as well as heated seats (for the outboard positions), plus there are six 100W USB-C ports spread around the cabin. The front seats are heated and ventilated, and there’s also a UV sterilisation compartment in the front as well as a wireless charging pad.
Out the back the boot is a respectable 300 litres with the third row in use, but it expands to a roomy 712 litres with the third row stowed.
If you do need to fold down either the second or third row seats, you can do it at the press of a button in the boot. There’s also a 240-volt household outlet in the boot which allows you to run small electric devices.
Four variants are available in the Audi Q7 line-up, excluding the performance-bent SQ7. Well, at the time of the launch event, one of those four is yet to arrive, that being the new entry-grade Q7 45 TFSI which starts from $108,815, before on-road costs. TFSI being ‘Turbo Fuel Stratified Injection’ or Audi-speak for ‘turbo-petrol’.
It’s joined by a diesel-powered 45 TDI which starts from $117,284, before on-roads. But ‘entry-grade’ for the Q7 doesn’t mean skint on goodies, both coming in with standard gear like leather-appointed upholstery with heated electrically adjustable front seats, an electric folding third row, wireless phone charging, screens and tech galore, matrix LED headlights, 20-inch wheels, adaptive air suspension, and a slew of safety features including some new stuff, but we’ll get to that later.
The matrix LEDs are one of the main new bits of kit, though a daytime drive route meant not getting to put those to use. They’re pretty, though…
The 45 grades can be upgraded with the $3900 'Premium Package' to add 21-inch alloys, four-zone climate control, black exterior styling and coloured interior ambient lighting.
Stepping up from the 45s are the 50 TDI S line and 55 TFSI S line, which together at $136,815 each form the next rung up from entry.
They’ve got 21-inch wheels and an S line exterior pack along with tinted privacy glass to tell them apart from the entry 45s from the outside, but inside there’s four-zone climate control, ambient lighting, a Bang & Olufsen sound system, a head-up display and proper leather upholstery for the seats.
Australian 50 TDIs and 55 TFSIs come standard with an S line interior pack that includes sports seats, leather steering wheel and shifter, aluminium inlays and door trim, plus black headlining and floor mats with contrast stitching.
There are two option packs at this level: the $4200 'Luxury Seat Package' adds S sports seats that feature an integrated headrest, Valcona leather with diamond stitching, ventilation for the front seats and heating for the second row’s outboard seats.
Then there’s a 'Premium Plus Package' for $5500 which brings 22-inch alloys, sport-tuned adaptive air suspension, dynamic all-wheel steering, a black exterior styling pack and power-assisted closing doors.
Given the update is all up relatively minor, prospective buyers will be pleased to know the same can be said for the pricing changes - even a year ago, the prices for the Q7 variants that were on sale at the time were within a couple of thousand dollars of where they are now.
Hyundai has opted to launch with only the Calligraphy grade for now, but that won’t be the end of the Palisade range. The more rugged XRT Pro variant will be coming in 2026, but no details are locked in just yet in terms of timing or pricing.
So, for now there is just one Palisade to pick, the Calligraphy priced from $89,900 (plus on-road costs). That’s a whopping $14,000 more expensive than the model it replaces, which is a huge jump regardless of the many changes Hyundai has made.
To be fair to Hyundai, the range-topping Kluger Hybrid Grande will set you back $85,135 (plus on-roads), so they’re in the same ballpark. But both are quite pricey for mainstream, family SUVs, especially in the current economic times.
Fortunately, Hyundai has been very generous with standard equipment, befitting the Calligraphy badge. This includes 21-inch alloy wheels, LED headlights and tail-lights, sunroof, a 14-speaker Bose sound system, leather-appointed upholstery, inbuilt navigation as well as Apple CarPlay and Android Auto. There’s also Hyundai’s 'Digital Key 2.0', which launched on the recent Ioniq 9 and an all-new fingerprint scanner - more on those below.
The four drivetrain options for the Q7 line-up are split between the two ‘grades’, with the 45 TFSI and TDI powering the 'entry-level' cars and the 50 TDI and 55 TFSI as the feature-packed variants.
The most affordable option is the 45 TFSI, which runs a 2.0-litre, four-cylinder, turbo-petrol engine making 185kW and 370Nm.
Like all variants in the Q7 range, the 45 TFSI engine powers all four wheels via an eight-speed automatic transmission. Audi claims the 45 TFSI will hit 100km/h in 7.3 seconds, if that’s your thing when it comes to three-row SUVs.
The rest of the line-up is powered by different versions of the brand’s 3.0-litre V6, all turbocharged, and all with 48-volt ‘mild hybrid’ (MHEV) tech aiming to increase efficiency.
The 45 TDI is, of course, a turbo-diesel 3.0-litre V6 that makes 170kW and 500Nm, also sending power and torque to all four wheels via the same style transmission. Audi says this one knocks over 100km/h in 7.1 seconds.
Similarly, but with more power and torque, the 50 TDI is also powered by a turbo-diesel unit as the name suggests. This one puts out 210kW and 600Nm, making it likely the best choice for towing and such even though all V6 variants boast a 3500kg braked towing capacity. The 50 TDI’s figure to hit 100km/h is a claimed 5.9 seconds.
Finally, the 55 TFSI makes 250kW and 500Nm, and boasts a 5.9-second claimed 0-100km/h time.
Hyundai has replaced both the old 2.2-litre turbo-diesel and the 3.8-litre V6 petrol with an all-new hybrid powertrain.
Officially known as the 'TMED-II' hybrid system, the set-up combines a new 2.5-litre turbocharged petrol engine with a freshly developed hybrid system that integrates two electric motors, instead of just one.
It’s a very complex set-up that Hyundai spent many spreadsheet graphics explaining, but in simple terms, the two motors are mounted between the engine and the transmission and one motor is dedicated to creating power and the second one to drive the wheels.
The end result is the new Palisade makes a healthy 245kW of power and 460Nm of torque, whilst also being quite fuel efficient.
As you might expect, diesel versions of the Audi Q7 are claimed to use less fuel than their petrol counterparts, so let’s start with those.
The 45 TDI boasts a claimed 7.0L/100km consumption figure, while the 50 TDI is a little higher at 7.1 litres. Both have 75-litre fuel tanks, and should therefore theoretically get more than 1000km out of a fill.
On to the petrol models, the four-cylinder TFSI 45 has a claimed 9.3L/100km efficiency figure and the V6 TFSI 55's number is 9.0L/100km.
Given the nature of the driving and groups sharing cars during the launch event, we’ll wait until we’re next in a Q7 for a longer time before doing our own efficiency test.
Hyundai claims this new hybrid set-up allows for a short amount of all-electric driving range, although it doesn’t reveal how far, but its main priority is to improve fuel economy while creating a viable alternative to the increasingly unpopular turbo-diesel engines.
Which it arguably manages to do quite well. Despite being a full-size SUV capable of accommodating up to eight occupants, the Palisade has a claimed fuel economy rating of just 6.8L/100km, which is an impressively small number for such a sizable vehicle.
While we couldn’t achieve that number on our predominantly open-road test drive, we still returned a solid 8.6L/100km, which is good given the conditions.
The Palisade is fitted with a relatively large 72-litre fuel tank, which means if you can hit the official claim, there is a theoretical driving range of more than 1000km.
Aside from the mild-hybrid now standard on the Q7’s V6 models, there’s not a whole lot to report on in terms of new tricks or surprises from behind the wheel.
But that’s okay, because it means the Q7 remains a supremely comfortable and capable large SUV.
Our test route consisted of plenty of rural driving, with a combination of surfaces that would in some family haulers see the suspension and maybe even steering show cracks in their ability - but the Q7 remains composed.
Given its weight and size, it can feel a little hefty around sharper corners, but the Q7 in these variants (i.e, not its performance-focused SQ7 sibling) isn’t built to be hustled like that.
It feels like the kind of air-suspended loungeroom-on-wheels that would be at home barreling down the autobahn at 180km/h and being completely undramatic about it.
Still, this model shares some moving parts underneath with the likes of the extremely capable Porsche Cayenne, and while the Q7 isn’t quite a giant hot hatch, the sound foundations shine through dynamically.
Of course, when it comes to powertrains, there isn’t really a wrong answer, each engine fits a purpose.
If you’ll ever need to tow (and you can at up to 3500kg braked), the low-down steady urge of the 50 TDI is probably your best bet, but even the 45 TDI is a solid choice for long-range motoring.
The petrol models will better suit those in city situations, and while they never feel truly urgent, the 55 TFSI isn’t without some impressive push for something of this size.
While it may look like a small engine of paper, the hybrid system provides good performance. It offers plenty of punch when you need it, not labouring up hills or when overtaking. But it’s also very quiet and smooth at lower speeds and when cruising, so the powertrain gets good marks.
The Palisade is also pleasant to drive thanks to its locally-tuned suspension and steering. Hyundai has returned to a local ride and handling program, after wavering in the aftermath of the pandemic. Engineers from Hyundai’s Korean headquarters came out to assist and ensure it was as well suited to our unique road conditions.
The result is a large SUV with good body control but also good compliance, which means it feels responsive to driver inputs but the suspension is still able to soak up bumps with relative ease. At no point does it feel crashy or harsh, instead it has a very relaxed driving character.
The Q7 is a maximum five-star car according to ANCAP, but the list of safety features is dozens long.
The highlights include adaptive cruise assist, lane assist and side assist, surround view cameras and new traffic sign recognition plus warnings for approaching cyclists and the like.
In fact, Audi claims there are more than 30 active safety features, and almost all of them are standard across the range. The only one that isn’t is 'Parking Assist' with 'Park System Plus', as Audi calls it - the base 45 TFSI is only equipped with Park System Plus and not Park Assist.
Basically, the 45 TFSI can’t take over the task of parking itself, while the others can.
It’s all handled through radars, cameras, and sensors and when you’re on the road functionality is relatively unobtrusive which is a plus!
For reference, the Q7 has eight airbags including dual-frontal, side-chest airbags for front and second row outboard passengers, plus side head-protecting or curtain airbags for both rows.
On top of that, there are ISOFIX points not only in the second row, but also in the third, totalling five spots all up.
Safety was a controversial topic with the first-generation Palisade, with some minor safety systems missed during the rush to get it secured in right-hand drive production, ANCAP decided to test it and publicly slam Hyundai for offering a four-star model. Only to quickly upgrade it to five-stars when Hyundai added the missing safety tech, as planned, when it did the mid-life refresh.
So, after ANCAP’s questionable approach last time, Hyundai took no chances this time around and is confident it will score a maximum five stars when it is tested. No stone was left unturned with the addition of all the required active safety systems and even deleted the central lamp that runs across the grille in other market models.
It has all the usual suspects, including autonomous emergency braking, lane change assist and rear cross-traffic alert, but also gets the more advanced systems like forward junction assist. There are plenty of passive systems, including airbag coverage for all three rows.
Unfortunately, Hyundai still has some work to do on implementing these systems in a seamless manner. The brand has made some improvements, but there are still a lot of ‘bings’ and ‘bongs’ when you change speed limits, veer too close to a lane marking or similar.
It’s great to have these safety systems, but only if they work well enough so you leave them on and pay attention to them.
Audi’s five-year/unlimited kilometre warranty is pretty standard for a premium brand, but five years of free roadside assist and the ability to add a package to extend the warranty both add a little extra to the deal.
For the Q7, a five-year servicing plan is $3820, while the $4370 'Audi Advantage' plan adds two years to the warranty, two more services, and two more years' roadside assist.
Hyundai has recently introduced a seven-year, unlimited kilometre warranty, which covers the new Palisade.
Of course, Hyundai is one of the best established car brands in the Australian market, and has a nationwide dealership network so factory servicing should be easy for most owners. This is a major advantage in these changing times with some many new brands looking to make a mark in Australia with modest foundations.
Service intervals are every 12 months or 10,000km, the latter is a bit shorter than average. And the capped price servicing plan only runs for five years. Costs vary from $397 for a minor check-up to $674 for your fourth visit, but over the course of the five years you’ll pay out $2600.