What's the difference?
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…
This is the most affordable plug-in hybrid available in Australia – as this review is published – but it’s got a lot more going for it than just that.
The 2026 BYD Sealion 5 is a mid-size SUV wearing a BYD badge that has been thrust into the public’s awareness by the popular BYD Shark 6 – as well as by widespread criticism of brand's less popular aftersales shortcomings through much of 2025.
It’s also a plug-in hybrid that is showing up as the nation faces a fuel crisis, despite many remaining sceptical of going ‘full EV’.
The Sealion 5 has a long list of features, of course, plus a claimed four-figure driving range. Is this BYD too good to be true?
We grabbed the entry-level Essential to find out.
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.
While the BYD Sealion 5 lacks the polish of some more established plug-in hybrids, it has a seriously compelling price advantage over some competitors. It makes a base-model Mitsubishi Eclipse Cross PHEV feel positively outdated and it’s $13,800 cheaper.
BYD's lack of ANCAP rating for the Sealion 5 and the uncertainty around it still being a new brand are downsides, even if BYD is quickly moving past the latter. But being the most affordable PHEV available while having this much showroom appeal is bound to work in the Sealion 5’s favour, just don’t expect a dynamic masterpiece once you’re out on the road.
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.
The BYD Sealion 5, from the outside, is inoffensive but also uninspiring. That’s likely not such a bad thing for a mid-size SUV – it’s rare you’re hearing someone talk about how beautiful the Mazda CX-5 or Toyota RAV4 is.
Its quartet of colour palette options comes in on the safe side, too. Aurora White is standard, Atlantis Grey, Harbour Grey and Cosmos Black are cost-options.
Our test car is Atlantis Grey, which is interestingly quite blue.
The relatively upright shape is a slight departure from the more ‘aquatic’ silhouettes of BYD’s line-up, but the front grille and light layout are decidedly in step with the brand’s oceanic design language. There’s a bit going on, you could say.
The slimline tail-lights are the rear, especially from a three-quarter angle to the side, look attractive and help break up the rear without looking messy.
The Sealion 5’s design is overall net-good, but it’s inside where the mid-sizer feels like you’re getting plenty for your dollar.
The seats, despite the leather fakery, feel like decent material, and the layout uses buttons and physical controls cleverly without feeling outdated.
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.
To actually interact with the interior is, at times, another story. BYD’s tech interface is generally easy to manage, but could be simpler when it comes to navigating menus for the sake of driver distraction.
While larger text and buttons would be welcome, the multimedia system is easy to use when parked, and the functionality is impressive for the price point.
Winning more points for the Sealion 5, though, are the physical controls – buttons and the traditional gear selector – which make the cockpit much more intuitive while on the move.
Ergonomically, though, the adjustment between the steering wheel and driver’s seat could do with some work, as I found it difficult to find a truly comfortable driving position. This is coming from someone 178cm tall, a very normal height in Australia.
Better adjustability on the steering column would be helpful, as it’s something I’m not sure I’d ever get totally used to.
Visibility and physical space inside the Sealion 5 is impressive, though. The car is 4738mm long, 1869mm wide and 1710mm tall, and the roof and window lines don’t swoop too aggressively towards the rear.
There are low window shoulders even into the rear, so light isn’t at a premium, though under-leg support could be better on the pew.
It’s otherwise un-cramped. The 2712mm wheelbase means decent legroom for second-row folk, plus behind the 60/40 split-fold seats there’s 463 litres of space for luggage. That becomes 1410L with the seats folded.
There’s unfortunately no spare tyre, just a tyre repair kit.
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 BYD Sealion 5 Essential kicks off from $33,990 before on-road costs, four big ones less than the Premium ($37,990). We’re focusing on the Essential today, but don’t think that means a shallow list of features.
As you’d expect from BYD if you’ve been paying attention to the Chinese brand in its emergent years, the Sealion 5 comes with more than $34K would normally get you – a 10.1-inch central multimedia touchscreen, an 8.8-inch driver display, synthetic leather upholstery, dual-zone climate, a six-speaker sound system, wireless Android Auto and Apple CarPlay, USB-A and -C ports front and rear, digital radio and keyless entry.
On the outside, LED headlights and tail-lights are the same for both variants.
Both also have 18-inch wheels, not unwelcome for the benefits of on-road comfort.
Consider that the most popular SUV in the country, the Toyota RAV4, costs at least $45,990 without the benefit of a plug-in drivetrain (yet) and comes with, on paper, a more sparse list of features.
The closest PHEV competitors are still more pricey, including the Geely Starray ($37,490) and Chery Tiggo 7 ($39,990), and arguably lack the brand power BYD has come to enjoy.
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 Sealion 5’s front wheels are driven by a combined maximum of 156kW thanks to a 1.5-litre four-cylinder petrol engine (145kW/300Nm) and a permanent magnet synchronous motor (72kW/122Nm).
BYD claims a 0-100km/h sprint of 7.7 seconds for the Sealion 5 Essential, four tenths faster than the Premium despite only a 61kg difference in kerb weight.
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 charged 12.9kWh lithium iron phosphate (LFP) battery and a full 52-litre (95 RON minimum) fuel tank, BYD reckons the Sealion 5 Essential can cover 1001km under NEDC testing, which is optimistic. It claims 71km can be done on EV power alone.
Not only due to the lenient nature of NEDC testing (WLTP is more common and usually results in lower ranges), but the reality is that once the battery is flat, the engine is doing a lot more work.
Charging is slow, limited to 3.3kW (AC only), which should take between 4 and 5 hours to charge from the lower end of the gauge for the battery size. Given most PHEV owners will do this overnight at home, that’s certainly not the end of the world.
Claimed consumption figures are 1.2L/100km with more than 25 per cent battery charge, or 4.5L/100km when it dips below that.
Realistically you could do sub-50km trips and use no fuel, or never plug your Sealion 5 in and see fuel consumption soar. In any case, anything close to 1001km in a single run is extremely unlikely.
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.
You might expect a car at this price, regardless of its drivetrain, to be underwhelming from behind the wheel.
That, then, makes it even more pleasantly surprising that the BYD Sealion 5 is actually rather competent. Not massively exciting or dynamic, but certainly not a disappointment.
The Sealion 5 is, save for a couple of arguably minor annoyances, quite easy to get used to and drive.
Firstly, when making proper use of its electric power, the drivetrain provides enough shove for its intended use. It’s not overly powerful, but you won’t have trouble overtaking. It’s the same with most of the inputs, the steering is light but not completely numb – again about right for how the Sealion 5 will be driven.
Perhaps its biggest departure from expectations based on other cars from China is its suspension is on the stiffer side of things, but again it’s not unruly or too rugged. In fact, it does provide a better sense of control than many of its compatriots.
Again, the biggest issue with the Sealion 5 day-to-day is its driving position, the steering column adjustment isn’t up to scratch and there’s not really a perfectly comfortable seating position (I’m a very standard 178cm).
On long trips, you might also find the engine gets quite noisy once the battery power is gone as it works hard to pull the mid-size SUV along under acceleration.
Its driver-assist systems are, you might be pleased to hear, on the calmer side of things – BYD is getting better at calibrating its safety features and I didn’t find myself rushing to switch it all off as quickly as usual.
It can still be a bit too persistent in its lane-keeping, but it’s a big improvement on the way things were.
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.
There’s no ANCAP rating for the Sealion 5, but the list of safety kit isn’t lacking on paper.
BYD lists seven airbags ,including full-length side-curtain bags and an important centre airbag, plus there’s a whole suite of tech that’s, as noted, better behaved than past driver-assist systems from BYD.
The Essential only misses out on a surround-view parking camera and front parking sensors, both arguably important safety features for parents, but the rest of the list is the same as the Premium including adaptive cruise control, lane-keep and lane departure assist, traffic sign recognition, blind-spot monitoring, rear cross-traffic alert with rear AEB (as well as front AEB, of course) and tyre pressure monitoring.
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.
BYD has a six-year/150,000km warranty, which is probably more than you’d need in terms of distance but is behind many competitor brands’ timelines – seven to 10 years is becoming the norm, even if it’s conditional.
An eight-year/160,000km warranty covers the battery, which is about par for the industry.
Servicing for the first five proper services ranges from between $285 and $930, plus there's a free check-up six months into ownership and a total cost over the span of $2355 – an average of $471 per service.
BYD has just over 100 dealerships in Australia, so finding one for servicing shouldn’t be too challenging.