Hyundai Palisade vs BMW X1

What's the difference?

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.

This new BMW X1 feels like it's been built by a team of parents because it’s one of the most practical and easy to use small SUVs my family and I have ever lived with and, trust me, they’ve seen a lot of test cars come through the Berry garage.

We loved the roomy interior with high ceilings, the clever storage everywhere from the giant door pockets to the floating centre armrest up front and big boot for our pram.

Entry and exit is easy through the tall and wide doors, something my back was thankful for every time I had to put our baby into her car seat.

Driving is easy, with great visibility and the engine that comes in the xDrive20i M Sport makes this X1 sporty and fun to pilot, too.  

The only drawback is the price, it's a bit expensive but at the same time you are getting a high-quality feeling 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.

This current generation of X1 arrived in late 2022 and finally looked more like part of the BMW SUV family with tall and boxy styling rather than the sleek, but raised hatchback it seemed to be before.

My test car had 'M Portimao Blue' metallic paint - a flattering hue that showed off the X1’s lines as you can see in the images.

I like the X1’s oversized grille which suits the angry looking front bumper that comes with the M Sport inclusions, but balanced by pretty headlights.

Inside, the X1 xDrive20i M Sport is modern and minimalist in design. I like the floating centre armrest in between the driver and front passenger and the way it creates a feeling of more space and adds more storage.

The double screens are nice, but we’re seeing this same design and tech now in budget cars such as the Chery Omoda 5 and Haval H6. BMW needs to be even slicker and more stylish if it wants to maintain its edge.  

If you like your SUVs sporty looking then check out the BMW X2, X4 and X6. These are coupe style SUVs (but with four doors).

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.

My family found the X1 xDrive20i to be one of the most practical small SUVs we’ve lived with thanks to its spacious interior, clever cabin storage and plenty of convenient features.

I need to point out the door pockets - they’re the biggest I’ve ever seen. They’re more door buckets than pockets and super helpful over the week not just for bottles but for everything else that I needed to dump out of my own pockets and into them.

The floating centre armrest up front looks like an ironing board and has a tonne of storage underneath.

The wireless charging is handy but the holster is a bit un-user friendly in terms of access, but it held the phone tight and stopped it becoming a projectile when driving, which is what you want.

There are power outlets galore, too, proximity unlocking, and a gesture tailgate.

Legroom in the back is excellent and there’s so much headroom throughout. 

The X1’s 540-litre boot capacity is excellent for the class and meant we could fit our baby’s big pram and the seven-year old’s scooter and still have room for the grocery shopping.

In the space of driving this SUV and writing this review the list price of the X1 xDrive20i M Sport has risen from $68,900 to $73,400. 

That price hike was part of an increase across the model range and all grades now cost more, even the entry-level sDrive18i which is now 13K less than the xDrive20i M Sport.

But you’re paying for the more powerful, athletic and only all-wheel drive one in the X1 range. 

You’re also getting loads of standard features in the xDrive20i M Sport. 

There’s the 10.25-inch instrument display with three different styles for your speedo and other gauges, while flowing into that is the 10.7-inch media screen with sat nav, wireless Apple CarPlay and Android Auto, and digital radio. 

There are LED headlights, plus proximity unlocking, a head-up display, dual-zone climate control, a power tailgate, sports seats (the front ones are heated and power adjustable) and adaptive cruise control.

As the name suggests the xDrive20i M Sport is fitted with BMW M Sport goodies as standard. These include adaptive M Suspension, M leather steering wheel, M roof rails, M headliner and M interior trim. 

My test car also had $8900 worth of options fitted including the sunroof, Harman Kardon stereo, the ‘Vernasca Black’ leather seats and 20-inch M light alloy multi-spoke wheels.

Is it good value? Well, you do get a lot of nice things here but at a $13,000 premium over the entry grade, plus the $3500 price jump in the past few weeks, I’d say the value isn’t great.

If you’re trying to keep the cost down, the sDrive18i is the budget pick. 

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 X1 xDrive20i M Sport has a more powerful engine than the grades below it in the range - it’s a 2.0-litre, turbo-petrol, four-cylinder making 150kW and 300Nm.

A seven-speed dual-clutch automatic transmission does the shifting for you.   

This is also the only all-wheel drive X1 currently in the range.

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.

BMW says that after a combination of open and urban roads the X1 xDrive20i M Sport will use 7.4L/100km.

In my own testing my driving was mainly city and suburban, which uses quite a lot of fuel. We did dashes to birthday parties, the grocery shopping, school drop offs and all of it in busy traffic.  

I recorded 8.9L/100km, but that’s not overly thirsty considering I was carrying two car seats with children, and all the gear that goes with them. 

A small 45 litre tank means the xDrive 20i M Sport has a range of about 608km, which is on the shorter side.

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.

Only a week before testing the X1 xDrive20i M Sport I’d been reviewing a BMW 330e and going from the 3 Series to the SUV was like changing my seating position from being in a bathtub to sitting on a bar stool. 

Actually, the X1’s seat is far more comfortable than a stool and the refined quality is what you’d expect from BMW.

But compared to the low slung 330e the visibility and the upright driving angle of the X1 is very different.

It’s something you want in an SUV that puts practicality before performance.

As much as I liked the sporty sedan, as a dad I preferred being able to see better when parking in the X1, and this made life a lot easier.

Easy is a good word to describe what the X1 xDrive20i M Sport is like to drive - from that visibility to the light steering, comfortable ride and that great engine with all-wheel drive.

That 2.0-litre four-cylinder has more than enough grunt to run up the steep hills in my neighbourhood without struggling, the transmission is smooth and the all-wheel drive system adds a bit more reassurance in the wet weather.

All of this makes for an easy, enjoyable drive. 

The X1xDrive20i M Sport like all X1s scored the maximum five-star ANCAP rating in 2022.

A score of 88 per cent was given to child protection and the ANCAP report found that a 10-year old and six-year old in the second row had adequate to good protection in a front offset collision and a side impact. 

For child seats there are two ISOFIX points and three top tether anchor mounts across the second row.

As you would expect from a model that’s hasn’t even been around a year yet, the X1 xDrive20i M Sport has the very latest in advanced safety tech.

There’s AEB which is operational from 5.0km/h to 210km/h and also works at road junctions. There’s lane keeping assistance, blind-spot warning and rear cross-traffic alert. 

There are curtain airbags for front and rear passengers, a centre airbag for the driver and co-pilot along with frontal airbags plus side chest and side pelvis airbags.

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.

The X1 xDrive20i M Sport is covered by BMW’s five-year/unlimited kilometre warranty.

A five-year/80,000km service plan through BMW will cost $2150. You’ll be looking to pay an average of $430 per service every 12 months.