BMW X7 vs Hyundai Palisade

What's the difference?

When lined up against its direct rivals, the expensive X7 xDrive40d represents reasonable value for money.

It has a unique and bold look and a sumptuous, visually striking and well-appointed interior that has acres of space for family, friends, or for ferrying frequent flyers to the airport. 

That wallop of performance from the big beefy diesel is the cherry on the top. This is how you do a mid-life update. 

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.

There’s quite a bit that’s interesting about the X7’s design. Especially looking at it front on.

BMW certainly took a bold step when it introduced its toothy grille design for the X7 and the 4 Series range. 

But the Bavarian brand has made some even braver design moves recently by introducing a blocky front-end with split headlights on its new-gen 7 Series flagship sedan. That look has now found its way onto the face of the updated X7.

As with the 7 Series, it won’t be to everyone’s taste. But you can’t deny it has a lot of presence. 

The tail-lights have been tweaked and look good, but the sheer size of the X7 - it’s 5.2 metres long and 1.8 metres tall - means there’s no disguising the fact that it is a big, boxy SUV.

Inside the update ushers in significant design changes. The old dash and cowl is gone in favour of the ‘Curved Display’ that connects the instrument cluster and multimedia. 

New slimline air vents, LED backlit ‘X7’ graphics on the passenger side of the dash, and a new gear shift toggle that replaces the old shifter elevate the cabin and give it a much more modern vibe than the old X7 - one that’s in keeping with the excellent iX electric SUV.

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.

Regardless of the price point, a three-row SUV needs to be super practical and capable of family duties. 

And if you want a BMW X5 but need a lot more space, this is the next logical step.

Let’s start in the front row. As mentioned, the new X7 gains the screen and tech set-up from other new BMW models like the iX and updated 3 Series. The Curved Display combines a 12.3-inch digital instrument cluster with digital speedo and a 14.9-inch multimedia screen.

You can customise the cluster layout and move things around on the multimedia screen, too. The latter is a touchscreen but you can also find what you need via the 'iDrive' controller in the console.

I have had some experience with this system in the iX and while it’s not without its flaws, it is a top notch system. There’s a lot to wrap your head around, but the use of app icons helps. And you can swipe through to your chosen screen.

It took far too long to work out how to find the trip computer, something that should be much easier to access, as well as a couple of other functions. And the climate controls are housed in the digital screen. I would always prefer a separate space with buttons for air-con.  

But the graphics and displays - including the excellent head-up display - are excellent. 

Other tech you get with the X7 includes the BMW’s 'Digital Key', which is an app that allows iPhone users to lock and unlock their car remotely, and BMW ID driver profile.

If you buy this car, just allow yourself some time to familiarise yourself with all that tech.

Elsewhere up front there’s a lovely new three-spoke steering wheel, and cute touches like the metal air vent toggles, black and metal touches and the choice of inserts.

The front seats are luxurious and comfortable and offer loads of side and thigh support. They have memory functions, too. There’s no shortage of headroom up front, either.

Storage-wise, the door will fit the largest of bottles, as well as other items thanks to generous door bins, while the central lidded box is also sizeable. 

What about that second row?

The X7 xDrive40d usually comes standard with seven seats, but our test car was fitted with the $1500 captain’s chair option which drops seating capacity down to six people.

If you need the extra seating this is not the option for you, but it is great for families with bigger kids, and it would make for an excellent airport transfer car. 

The seats are unbelievably comfortable and can be adjusted to suit your preference. They also have ISOFIX points and armrests. 

Rear seat occupants have access to their own climate controls, air vents, USB ports, cupholders and ample door storage.

There is a massive amount of occupant space as well - stretch those legs out and enjoy it!

One of the X7’s selling points is that it is a genuine three-row SUV. That third row is not just for occasional use for very small children, like so many seven-seat SUVs. That row can be used every day. 

Even with my six foot stature, I could easily climb in and out of the third row. That’s made even easier thanks to the mechanical seat functions.

Just hit the lever at the top of the second row seat and the motor moves the seat forward and up to ensure there’s a big enough aperture to get in and out of the rear seats. 

You can also raise and lower the third row electronically via buttons on the boot wall - and they stow flush into the boot floor. Neat!

Once in the third row, there’s air vents, USB ports, bottle holders and storage and quite comfortable seats with more than enough leg and head room.

There’s even a third row section of the sunroof, operated from the second row. Lots of clever touches that people who use the third row will appreciate.

The boot has a few cool features, too, including a split tailgate.

You can even sit on the lower section - it can handle a load of up to 250kg - a perfect place to sit and watch the polo.

You can lower the suspension to aid loading larger items, and the X7 comes with a space-saver spare wheel.

Capacity is 300 litres with all seats in place, and I easily fit a pair of smaller suitcases in with that configuration. It increases to 2120L with the two rear rows folded. 

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.

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 X7 xDrive40d is powered by a 3.0-litre, in-line six-cylinder turbo-diesel engine, that gets a boost in power - it pumps out 259kW of power and 720Nm of torque - 64kW/100Nm more than the 30d.

It now also comes with 48-volt mild hybrid tech, which uses an electric motor integrated in the eight-speed automatic transmission.

It drives all four wheels via BMW’s 'xDrive' all-wheel drive system and it is fitted with air suspension for a cushy ride. Towing capacity is rated at 3.5 tonnes braked or 750kg unbraked.

If you are keen on off-roading in the X7, it has a 221mm ground clearance, and a fording depth of 500mm, but maybe best to keep it on the tarmac.

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.

According to BMW, the official combined cycle fuel figure for the X7 40d is 8.0 litres per 100 kilometres.

Our fuel figure after nearly a week of mixed city, freeway and country driving was 9.0L/100km, which isn’t too far off the mark.

It has an 80 litre fuel tank and an approximate driving range of 1000km.

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.

With a big plush SUV like this, you’d expect a comfortable ride. And for the most part, the X7 delivers that, while offering more than a bit of grunt, as well.

The X7’s height ensures a high driving position, and there’s plenty of glass for decent visibility. 

Propelling a 2.5-tonne SUV could be a struggle for a lesser engine, but the meaty diesel offers ample torque and the mild hybrid set-up helps to reduce initial turbo lag significantly - that means it is responsive from a standing start.

I wouldn't have thought a vehicle of this size and shape was capable of a 5.9-second 0-100km/h time, but here we are.

As a result of all that torque and power, overtaking is a breeze - providing there is enough room on the other side of the road for both cars to fit.

That size and heft have an impact on cornering and dynamics. You simply can’t carve through tight corners in this car, but with that said, it’s more entertaining than you’d think. 

Steering feel is weighted on the heavier side and it’s as sharp as it needs to be in a car like this. It would be weird if the steering was too pointy. 

Ride quality is top notch - as it should be - and while the massive optional 23-inch wheels and low profile tyres mean you’ll notice potholes and the like, it largely soaks up imperfections with ease.

That level of refinement extends to the hushed ride, too. The cabin is a quiet and serene place to spend time - but not quite to the same degree as a 7 Series. 

Parking in tight spots is a challenge, and manoeuvring in narrow streets could take a while, too. But you could tell that just by looking at the X7.

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.

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.

After copping a bit of flack from motoring media and buyers, BMW finally increased its warranty terms last year from three years to an industry standard five-year, unlimited kilometre warranty on its vehicles, including the X7.

Rather than a set servicing schedule, BMW offers condition-based servicing which is when the vehicle’s computer alerts the owner that it requires a service. 

BMW doesn’t offer capped-price servicing, but does have a pre-paid 'Service Inclusive Package' with terms ranging from three years/40,000km to five years/80,000km and beyond. 

A five-year basic package for the X7 costs $2800, which is not too bad considering the positioning of this model.

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.