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…
Timing is everything.
For instance, with all the bad publicity the man behind the brand is generating, right now might be the perfect time if you’re in the market for a Tesla Model Y alternative.
And that’s especially so if said alternative happens to be around the same price… such as the all-new Cupra Tavascan.
No, not an antacid for relief from indigestion, but the Volkswagen Group’s Spanish brand’s first medium-sized electric SUV.
Is it good enough to catapult Cupra into the big time in Australia?
Time 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.
Like most Cupras, the Tavascan is affordable, stylish, practical, fun to drive and just that little bit different.
And it is clear the Volkswagen Group is trying hard to make the brand a success. That it can bring that formula to the medium EV SUV market with as much aplomb might just be enough to lure more than a few would-be Model Y buyers Barcelona’s way.
Definitely one to strongly consider.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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.
Although this mid-sized SUV is full of German VW Group DNA underneath, there are unique Cupra styling elements that do strive to evoke Spanish expression.
Designed in Barcelona, standout points include an insectoid trio of LEDs making up the headlights and tail-lights, an aggressive nose featuring a V-shaped bonnet bulge and lower-bumper treatment, a rising swage line in profile and pronounced rear diffuser.
While we appreciate the Tavascan’s styling flourishes, with the Manga-esque vent ‘eyes’, copper trim and floating wing-look upper dash-pad all gelling together nicely, the unique central spine design looks downmarket if not cheap, with an alien look and sheeny reptilian scale finish. There are too many things going on at once.
Built on the VW Group’s MEB EV architecture, the Cupra shares its platform with the VW ID.4, Skoda Enyaq and Audi Q4 e-tron SUVs within the VW Group, providing a sound engineering base, but also a tall, narrow appearance when seen rear-on.
Maybe that’s why the Tavascan achieves such an impressive drag coefficiency of 0.26.
Dimensions are 4644mm (length), 1861mm (width), 1597mm (height) and 2766mm (wheelbase), while ground clearance is a low 154mm.
For a so-called “Coupe Utility Vehicle” (CUV), all translate to quite acceptable interior space and practicality.
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.
Now, with all that CUV stuff in mind, the Tavascan manages to look and feel sporty whilst also offering a decent level of family friendly functionality.
Wide doors and a high hip point offer easy entry and egress, in a roomy and accommodating cabin, on seats that are brilliantly comfy and supportive – even in the base Endurance. These are of the integrated ‘tombstone’ variety with bolstered sides to help keep you snug and secure. They’re great.
So is the driving position, with its grippy little wheel, readily accessible switchgear (including the knobs on the spokes), clear view of the modestly sized digital instrumentation pod and angled touchscreen.
After all the criticism that the VW Group’s earlier iterations of this system had garnered – including in other Cupras – the Tavascan’s interface proved to be simple to navigate, fast to respond and pleasant to look at.
Furthermore, even with that rising window line, vision out is AOK and ventilation is fine, too.
The aforementioned central spine’s shape appears to come at the expense of storage, as there’s less of it than expected in an EV SUV. The small glovebox is disappointing. We’re not fans of the driver’s door power window switch bank, necessitating a distracting press of a ‘rear’ button to operate the back windows. And one of the test cars suffered from dash squeaks.
Moving on to the rear, with seating for five, there’s actually ample space for people up to about 180cm tall, while all the usual amenities apply, such as vent outlets, a pair of USB-C ports, a folding armrest with cup holders and overhead lighting. Nothing seems to be missing.
However, there is one important thing missing further back.
Yes, the Tavascan’s boot offers a handy 540 litres of cargo capacity, with a low, wide and flat floor capable of swallowing all sorts of stuff. And, of course, the 60/40 rear backrest fold down, boosting those numbers to between 1579L and 1604L depending on specification.
But, as with almost all EVs, there is no spare wheel. The aforementioned tyre mobility kit is bad news if you experience a severe puncture. Even a space-saver spare would be infinitely preferable.
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.
Kicking off from $60,990 (all prices are before on-road costs) in base Endurance grade, this is a single-motor, rear-wheel-drive (RWD) with a usefully larger battery for better range than almost all competitors above as well as below its price point.
There’s also the flagship VZ with dual motors and all-wheel drive (AWD) from $74,490.
Not cheap, then, but the Endurance is highly competitive when you consider how ably the it traverses the axis of price, size and battery capacity.
Consider that while the Cupra does cost more than France’s superb Renault Megane E-Tech from $54,990, as well as the Kia EV5 (from $56,770), Xpeng G6 ($54,800), Smart #3 ($57,900) and BYD Sealion 7 ($54,990), that all hover from around the mid-$55K mark, it is only a tad exxier than the Model Y RWD from $58,900 and closely related Volkswagen ID.4 from $59,990, and cheaper than the equivalent Ford Mustang Mach E ($64,990), Toyota bZ4X ($66,000), Hyundai Ioniq 5 ($69,800), related Skoda Enyaq ($69,990), Subaru Solterra AWD ($69,990) and Kia EV6 ($72,590).
Note, however, that aside from the #3 and EV5, all are slightly larger than the Barcelonan mid-sizer.
Still, the swoopy Tavascan significantly undercuts other, more-premium Euro-branded propositions with a similar propensity for style, like the Polestar 4, BMW iX2, Volvo XC40 and (also related) Audi Q4 e-tron Sportback. All are well north of $75K.
Such pricing is possible partly due to this being the first Cupra – and only the second Volkswagen Group Australia model after the 2004 Polo Classique sedan – to be made in China, as part of a joint venture with JAC. This model is not built anywhere else on the planet.
Base equipment levels, however, are not quite up to Chinese standards.
The Endurance includes auto entry/start, adaptive cruise control, three-zone climate control, sports front seats, a heated steering wheel, a 15-inch touchscreen with a rear camera, wireless Apple CarPlay and Android Auto, 5.3-inch digital instrumentation, wireless phone charging, a quartet of USB-C ports, a hands-free powered tailgate, front and rear parking sensors, and 19-inch alloys.
Cupra reckons the Interior Package for an additional $4500 will be a popular option, since it adds a surround-view camera, microfibre-trimmed, heated and powered front seats with memory, broader ambient lighting, terrific 12-speaker Sennheiser audio, 20-inch wheels and more.
The VZ, meanwhile, features most of the above and then steps up with the second electric motor, AWD, 21-inch alloys, adaptive dampers, a glass roof (thankfully with a sunshade), adaptive matrix LED headlights.
Another $8K buys the Extreme package, bringing Nappa leather upholstery, racier front seats with ventilation, and unique alloys shod with performance tyres.
Sadly, no Tavascan grade comes with a spare wheel, just a tyre mobility kit.
Unsurprisingly, all boast advanced driver-assist tech, such as autonomous emergency braking (AEB) and lane-support systems, along with a handy vehicle exit warning and seven airbags, including a front-centre item. Find out more in the Safety section below.
Nothing too radical in the specification stakes, then. But Cupra reckons the Tavascan will offer one extra-special benefit that no rival can – and that’s Barcelona-bred design flair – when Aussie deliveries commence in May.
Time to take a closer look.
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.
Don’t go searching for more boot space under the bonnet – there isn’t any.
Plus, the main electric motor – a permanently excited synchronous unit – is located on the rear axle, driving the rear wheels via a single-speed transmission.
Tipping the scales at 2238kg, the Endurance makes 210kW of power, to offer a power-to-weight ratio of 94kW per tonne, as well as a 0-100km/h sprint time of 6.8 seconds, on the way to a top speed of 180km/h.
Meanwhile, the VZ also has a smaller, asynchronous 80kW/134Nm electric motor over the front axle, channelling up to 30 per cent of the SUV’s total power to the front wheels as traction requires, and upping the combined power maximum to 250kW. Tipping the scales at 2284kg, the VZ offers 109kW/tonne, while the 0-100km/h time slips to 5.5s. Both offer a 545Nm torque maximum.
The 400-volt MEB platform consists of MacPherson-style struts up front and a multi-link rear end. The VZ adds adaptive dampers. Braked towing capacity is 1000kg in Endurance and 1200kg in the VZ.
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.
The Tavascan employs an 82kWh Lithium-ion battery pack, offering a useable capacity of 77kWh.
Mounted down low in the structure to provide extra rigidity as well as balance, it helps the Cupra achieve a near-ideal 49/51 front/rear weight distribution.
The battery is also separated in 12 removable modules for easier repair and parts replacement.
When the accelerator is lifted or in ‘B’ mode, the electric motor acts as a generator to feed energy back into the battery. Three levels of brake energy recuperation is also available via the steering wheel’s paddle-shifters.
Cupra says that the Endurance RWD offers a WLTP range of 540km, while the circa-60kg heavier VZ AWD drops that to 499km, or 463km with the Extreme Package’s grippy high-performance tyres.
Officially, the combined average energy consumption figures are between 15.2 and 16.0kWh/100km in Endurance and between 16.5 and 16.8kWh/100km in the VZ.
Driving around Adelaide and beyond in the beautiful wine country, we managed between 15.0 and 22kWh/100km, as indicated on the Tavascan’s trip computer, which isn’t too bad.
The Cupra features an AC charging capacity of 11kW and DC charging capacity of 135kW.
Charging from empty to full when plugged in at home or work can take nearly 40 hours, or about 12.5hr with an optional 7.4kW wallbox, while a 10-80 per cent top-up using a standard 50kW fast charger needs about 75 minutes, or under half an hour if you find a super-fast 150kW outlet.
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.
Cupra prides itself as a builder of sporty, stylish and offbeat vehicles, and insists that the Tavascan is no exception.
With its design, interior presentation and powertrain supporting such expectations, the acid test is now how the Tavascan performs out on the road.
The really encouraging news is that, on our launch drive experience at least, Cupra’s coupe SUV serves up sportiness and a whole lot more besides.
Let’s start with performance.
Aided by a fine driving position, the Tavascan almost goes out of its way to normalise the EV operating experience, with the now-familiar VW Group column-mounted gear selector being reassuringly straight forward. You’re not left wondering if this thing is even on.
Choose the default Comfort drive setting, and the Cupra whooshes forward with eager yet measured forcefulness, so you’re spared unpleasant jerkiness. Speed builds up quickly and smoothly as the road opens up ahead. So far, so good.
Need extra muscle for overtaking or joining freeway traffic? There’s ample in reserve, revealing the real-world pace and response that even the least-expensive Tavascan offers. The Endurance is a deceptively brisk machine for the money. And that’s before the sportier driving modes are engaged.
Speaking of which, the steering is simply superb, offering sharp yet progressive cornering capabilities. You feel connected to the car, and that translates into very predictable handling and reassuring roadholding. Cupra is starting to shape up as one of our favourite non-German German-owned brands.
But the biggest shock is the Tavascan’s ride quality.
Now, though wearing 19-inch wheels and on steel springs, Cupra’s sporty leanings meant we expected the base grade to ride with tolerable firmness at best.
Instead, over Adelaide’s suburban streets leading into the hills (and then beyond), the suspension provided a sophisticated blend of suppleness and control, ably dealing with the rough stuff without any real abruptness.
Our only note here is that you can hear the suspension working underneath, in an endearingly old-fashioned mechanical way. Odd, but not to a distracting point.
Plus, while there are three levels of regen-braking assistance, we’d like the option of single-pedal driving capability.
Much the same dynamic flair applies to the Interior Package option that swaps out for 20s, except that the ride is clearly just that little bit firmer. But tyre and road drone do seem to drown out the suspension noise at times, but not to any alarming degree. Just in a typically German-engineered vehicle sort of way. No revelations here.
Switching to the VZ is equally revealing.
As you might expect, the extra power and additional (undisclosed) torque from the front electric motor are immediately obvious, elevating its performance significantly. Point, squirt, shoot. This thing really hustles along.
Yet it is the flagship’s balance and control of the chassis that came as a surprise.
Usually, the additional weight of two motors and 21-inch wheels detract from the driving pleasure of many an EV SUV with their shifting mass and heavier feel, but the VZ seemed to contain those tightly, and instead dishes up speed with agility and finesse.
Better still, the top spec’s standard adaptive dampers also seem to help deliver a supple and isolated ride, soaking up bigger potholes and that sort of thing, in a superior way that – we suspect – even the Endurance on 19s likely could not.
Factor in the beautifully nuanced and thoughtfully-tuned driver-assist tech systems, and – after months of driving at-times infuriating SUVs from China – the Chinese-made Tavascan feels anything but rushed or half-baked.
We’re impressed, at least on this first drive.
Ultimately, even after hours and hours behind the wheel, the Tavascan left us wanting more in a good way, not less. That’s a sure sign that the recipe is fundamentally right.
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.
The Tavascan also delivers an impressive showing on the safety front, scoring a five-star EuroNCAP safety rating.
A whole raft of advanced driver-assist tech is available, including autonomous emergency braking (operable from 5km/h) for pedestrians, cyclists and other vulnerable road users as well as car-to-car, lane departure warning/assist (from 65km/h), rear-cross-traffic alert, blind-spot warning, exiting-vehicle alert tech, adaptive cruise control, a driver-attention monitor and tyre pressure indicators.
There are seven airbags, including dual front, front-side, head and a front-centre item to help mitigate lateral occupant collision injury, as well as rear outboard occupant side and head coverage.
A trio of child-seat anchorage are fitted across the back seat, along with ISOFIX child-seat anchorages in the front passenger seat and two in the rear outboard positions.
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.
Here’s where the Tavascan loses some steam.
Each Tavascan is covered by a five-year/unlimited-kilometre warranty, which is only average nowadays and below the seven and even 10 years that some other EV brands provide. Free roadside assistance is provided for five years.
Service intervals are every two years or 30,000km, at a listed cost of $485 per visit. Alternatively, owners can pre-purchase six-year and 10-year service packages from $1310 and $2190 respectively.
An eight-year/160,000km battery warranty also applies.
Finally, Cupra also provides owners with the option of organising home or workplace AC charging solutions via Jetcharge, offering an $1800 ‘Lite’ or $2300 ‘Maxi’ charger, including installation.
Are all these enough to get the Tavascan over the line for you?