What's the difference?
Following the money comes pretty naturally to carmakers. It’s what happens when the product planning department smells a new direction on the breeze and then handballs that to the design and engineering folks who turn a perceived market trend into a showroom reality. And when everybody gets it right, you have a new default product. And everybody else has to keep up. Some even have to catch up.
We’ve seen it plenty of times before, too. Think about those early 1980s days when the default small car went from a sedan to the five-door hatchback. Didn’t that catch on? You might also remember more recently when a family car had to be a four-wheel drive. And what about the dual-cab ute revolution of the last 15 years?
The other strident market segment right now is the SUV, of course. And within that, most recently has been the march to electrification, starting with conventional hybrid technology and now progressing to the new must-have, a plug-in hybrid platform.
The fact is, if you’re a Chinese carmaker intending to sell on a world stage, you can’t ignore the plug-in SUV in any of its various sizes and marketing segments. There’s a good basis for this, too. Plug-in hybrids just make good sense. They offer the urban running-cost advantages of any hybrid, the option of zero tailpipe emissions, all-electric running over a normal commuting distance and – crucial for a big country like this one – they’ll keep motoring along for as long as the owner puts petrol in them.
Okay, so they can be heavy with all that tech on board, and there’s no denying that two power sources (petrol and electric) make for a more complex machine, but the advantages outweigh the downsides for many buyers.
The other graph you can plot with great certainty is that new tech will get cheaper as the industry moves forward. Which is exactly where BYD finds itself right now by being able to offer a plug-in hybrid variant of its Sealion 5 mid-sized SUV at a price that will have much of the opposition running scared. But how scared should the others be?
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…
Cars that don’t always appeal to enthusiast buyers are often seen by manufacturers as a way of not bothering with the dynamics. Good enough is, apparently, good enough. Thankfully, BYD hasn’t taken that path here and the local suspension tweaks have turned what could have been a me-too product into a bit of a dynamic class leader. And even if buyers can’t verbalise the benefits of that, they will still be subliminally enjoying them with every kilometre.
The other stand-out feature is the price-tag which represents an awful lot of car for the money. And, in such a price-sensitive market as this one, that will get the BYD over the line for a lot of families. That it also offers a vastly better driving experience simply makes the value equation – and the purchasing proposition – even stronger.
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 interior of the Sealion 5 feels pretty well-made and there are soft-touch surfaces on most of the touch-points. The steering wheel, too, is thick and chunky and nice to hang on to. But there’s a lot going on in terms of different colours, textures and surfaces, and it can all look a bit busy, despite the high-tech boardroom overall flavour. It’s also worth mentioning the trim material is synthetic but does a great job of looking and feeling like real leather.
Externally, there’s not a lot to grab the eye. Sure, it’s not an unpleasant looking vehicle, but neither does it stand out from the mid-size SUV pack. At least BYD decided against those cheap-looking plastic tack-ons on each wheel-arch.
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.
Here’s the other big shock relative to the price-tag of the Sealion 5: This is not a small car. Based on the price, you might have been thinking the vehicle would be a compact SUV. And you’d have been wrong. This is a proper mid-sized SUV with room for five and luggage and an overall length of 4.7 metres and change. And to put that into some kind of perspective, that’s just 30mm shorter than the Sealion 6 which costs about $9000 more at its starting point.
The wheelbase is long, too, and the 2712mm between the axles helps make the interior even more spacious. That means there’s lots of stretching room in the front, but also that a grown adult can comfortably sit in the back seat behind another grown adult at the wheel and still have enough room in every direction. The window sills are commendably low in the rear seat, too, ensuring even littlies can see out.
The biggest problem in the back is that the seat cushion is a bit flat, but, like the front chairs, it’s still pretty plush.
With all five seats in place, the Sealion 5 boasts 463 litres of luggage space and the cargo area is well done with storage pockets at each side, a light and an under-floor tray designed to transport charging cables and a tyre repair kit. Yep, that’s right, there’s no spare tyre of any sort here. No surprise, really.
Fold the rear seat down and you’re suddenly looking at 1410 litres of cargo space and your SUV is now a panel van.
As well as the dual-zone climate control, the Sealion 5 also offers a single USB -C and a USB-A charging port in the front and rear compartments.
The Sealion 5 also offers a V2L (Vehicle to Load) function, meaning it can power camping or on-site work equipment and even act as your home’s battery.
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.
The plug-in hybrid in question is the BYD Sealion 5. It has a claimed EV-only range of better than 100km, relatively quick charging, a decent sized battery, adequate performance, enough interior space for a family, good safety and lots of equipment. Oh, and it costs just $33,990, before on-road costs, in its entry-level Essential form. Incoming!
Equipment-wise, that sub-34K sticker gets you a 10.1-inch central info-screen, an 8.8-inch driver display, digital radio, a six-speaker stereo, wireless connectivity for Android Auto and Apple CarPlay and dual-zone climate control.
Throw another four grand on the table and you move up to the Premium version which adds plenty of kit for the $37,990 ask. That includes a panoramic sunroof, automatic tailgate, roof rails, heated and electrically folding mirrors, one-touch power windows, a six-way powered drivers seat and four-way powered co-pilot’s chair, a heated and ventilated driver’s seat and wireless charging.
The step up from Essential to Premium also includes a battery upgrade, and we’ll cover that off in the Under the Bonnet section below.
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.
Both variants of the Sealion 5 have the same driveline – mostly. They each use a 1.5-litre petrol engine teamed with a single electric motor, both driving the front wheels. Unlike the bigger Sealions, there’s no all-wheel drive version. Power peaks at 156kW and torque at 300Nm.
Why a non-turbocharged engine? BYD tells us the non-turbo engine helps keep cost out of the vehicle and, since the engine really only runs to power the electric motor and charge the batteries, it does so at a relatively constant engine speed, negating the need for a wide spread of petrol power.
The only major difference is that the Essential version has a 12.9kWh battery-pack, while the Premium gets a bigger, 18.3kWh pack for longer range, but precisely the same output and, therefore, performance.
A single-speed transmission is part of the BYD driveline package, also made possible by the fact that the vast majority of the driving of wheels is done by the electric motor.
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.
The Premium’s bigger battery claims to up the official NEDC range from the Essential’s 71km to 100km. BYD reckons with the 52-litre fuel tank brimmed and the car operating at its claimed 1.2 litres per 100km efficiency, the range of either version is just on 1000km. In the real world, that’s likely to be closer to 800km (especially with some highway running thrown in) but it’s still one heck of a solution to range anxiety.
There’s no DC charging function for the Sealion 5, so forget about commercial fast chargers. But on a 3.3kW AC power outlet, the maker claims the Essential can reach full charge in under four hours, while the Premium’s bigger battery will take under six hours to fully charge. A Type 1 charge cable is included.
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.
You don’t have to drive very far to realise that the local input into the Sealion 5’s suspension and steering have been worth the effort. BYD Australia has a local engineering team on call these days, and it shows here.
Actually, the steering is not the highlight; it has some weight but not a whole lot of feel, or, indeed, feedback for the driver. The ride and handling combination is what stars. Obviously well-damped, the suspension allows for a ride that is both complaint and quiet, without causing the car to wallow around like some jacked-up designs can with their higher centre of gravity.
In fact, the BYD is athletic to the point where keener drivers will find it an entertaining drive; hardly something that can be said for the majority of medium SUVs.
Performance is strong without being overwhelming and even though the Sealion 5 has that signature electric-drive feeling of effortlessness, the accelerator pedal has been calibrated to avoid the neck-snapping surge of grunt off the line. As such, it emerges with a fairly flat acceleration curve, and no hint that the petrol motor is cutting in or out.
Until, that is, you bury the throttle all the way at which point the petrol engine takes a few second to join in. And when it does, it’s pretty vocal – shrill, almost – as it catches up with the rest of the car and starts directly driving the wheels. To be fair, though, this is not going to be a common occurrence in everyday life thanks to the flexibility of the petrol-electric system for 99 per cent of circumstances.
On the move, the cabin is perhaps most notable for its soft, plush seats that are a nice change from the church pews of some manufacturers. And although the driving position is about right, taller drivers might prefer a steering column that extends out another few millimetres.
The driver display screen is another source of annoyance. It’s pretty small and contains lots and lots of information, to the point where the typeface is too small to be read on the run by anybody who relies on reading glasses.
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.
Passive safety in the Sealion 5 starts with no fewer than seven airbags including full-length side-curtain bags.
There’s also a front-centre airbag, something we’d like to see in more cars, particularly at this price-point. Child restraint points in the rear seat are the ISOFIX type.
The BYD gets pretty much the full suite of driver aids, including autonomous emergency braking, blind-spot monitoring, rear-cross traffic alert with active assistance, stability control, active cruise-control, traffic-sign recognition, front and rear collision warning and tyre pressure monitoring.
The Sealion 5 also incorporates a driver-attention monitor which seems better calibrated than some earlier efforts from some of the Chinese carmakers. Also improved in calibration terms is the lane-keeping assistance which is still too violent for our tastes, but more subtle than some of the competition’s systems. But while the savagery of this system has been toned down, it appears to have been at the expense of sensitivity and, time and time again, the cameras missed road markings that were faded or dirty.
The major safety benefit in paying more for the Premium variant is the addition of front parking sensors and a 360-degree camera instead of the Essential’s simple reversing camera.
The Sealion 5 has not been ANCAP tested as yet, although BYD says this is largely down to ANCAP’s scheduling rather than any hesitance on BYD’s part.
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.
Like other BYDs, the Sealion 5 comes with a six-year/150,000km warranty. Some of the competition have unlimited kilometre warranties, but to be honest, 150,000km in six years is going to be beyond the need and aspirations of most owners.
The EV battery is covered by an eight-year/160,000km warranty, and let’s not forget, BYD was a battery manufacturer before it started making whole cars. Certainly, the company is very bullish about the quality and safety of its 'Blade' battery technology, claiming it easily passes the technically-daunting 'nail-puncture' test.
BYD plans to have capped-price servicing for the Sealion 5, but no pricing announcements have been made yet.
Servicing also falls into line with other BYD models, so that means 12 months or 20,000km intervals.
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.