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…
Segment-bender, model-mash-up, mold breaker, franken-ute: there are many odd ways to describe the new electric Deepal E07 large 'SUV'.
I prefer to think of it as the mullet haircut of cars — business up front but a party at the back — but Deepal has settled on Multitruck to describe its new SUV-ute mash-up.
There isn’t anything like this vehicle on sale in Australia right now. The most similar vehicle on the global stage would be the Tesla Cybertruck, but the E07 is smaller and much less gaudy.
We got to have our first taste of the new adventure ready machine on Australian roads, and this is what you need to know.
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 Deepal E07 is a breath of fresh air. It’s exciting to see a vehicle zig when others zag.
It’s not just a conversation-starter, it is well priced, stacked with gear and has some potent performance. Not to mention that rear end has some real-world practicality, even if it isn’t quite a ute.
That is bolstered by a long warranty and a capped-price servicing program to take the risk out of trying a new brand.
It isn’t the sharpest driving machine out there, the safety tech is still annoying and having all the controls in the multimedia screen is infuriating.
Also, there are question marks on if buyers really want or need that fraken-ute rear end.
Time will tell if this car is fad like the mullet haircut or a real-world game changer.
Note: CarsGuide attended this event as a guest of the manufacturer, with 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.
The E07 stands out from the crowd. It’s design will turn heads and you’ll have strangers coming over for a sticky beak at all times.
It’s a big beast at more than five metres long and close to two metres wide. That puts it in Toyota LandCruiser territory.
The biggest talking point is the rear. What looks like a liftback is actually a retractable roof that converts it to an open tray at the touch of a button.
You can have it open with the rear seats folded flat or the rear seats up and the glass divider still in place to keep the world at bay.
Outside of the rear end, it's a futuristic-looking car with squished LED headlights, flush door handles and a closed-off front end typical of modern electric cars from China.
Inside it borrowed cues from Tesla with its minimalist design with next to no buttons and only a big central screen.
The interior quality feels good, with premium materials covering all surfaces.
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.
There are two sides to this story.
The convertible back makes it one of the only true dual-purpose vehicles, but let’s not oversell its capabilities.
It only has a payload of 300kg and only has a 1500kg braked towing capacity, so it's not tradie spec.
It is probably best suited for throwing a few surfboards in the back or mountain bikes and heading off to a remote spot where you can sleep in the car in relative comfort.
There is no rugged ladder frame underneath, but it can do a bit of light off-roading in all-wheel-drive guise.
Ground clearance of 223mm is good and it can wade up to depths of 600mm.
It has a vehicle-to-load function that allows you to power appliances, which boosts its potential as a campsite companion.
Inside it has spacious cabins with oodles of head, leg and shoulder room in both rows. That is thanks to its more than three-metre wheelbase — the distance between the front and rear axle that determines how spacious a cabin is.
There are rear air-con vents and USB charging ports for both rows, and the rear seats can tilt backwards for sleepy young-uns.
The boot capacity is 524L, or 1654L with the rear seats folded. A front boot under the bonnet is 131L.
One of my biggest gripes is that nearly every function of the car is controlled through the big multimedia screen.
There are shortcuts and app-like tiles that make it easier to navigate, but it’s still a hassle to dive into the menu to change side mirrors and other functions usually controlled via physical buttons.
Tesla set the precedent by moving all its functions into the screen and other tech-focused EVs have followed suit, but it smacks of cost savings rather than improving the user experience.
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 E07 is available in two grades: a single-motor rear-wheel-drive version and a dual-motor all-wheel-drive variant.
Prices start at $64,900 plus on-road costs for the rear-wheel-drive variant and jump to $73,900 for the dual-motor version.
That’s a very reasonable price for a large electric vehicle, but as it has no real competitors it has the segment and price point to itself.
The only difference between the two variants is the addition of the second motor that brings some serious potent performance.
Both are fully loaded with a laundry list of standard gear.
The E07 rides on monster 21-inch alloy wheels, has LED lighting front and back, a hands-free power tailgate and auto folding side mirrors.
Inside there is a 15.4-inch multimedia screen that is incompatible with wireless Apple CarPlay and Android Auto, and there is a wireless device charger and USB-A and -C ports front and back.
A monster head-up display — which projects information on the windscreen in front of the driver — replaces the driver display, with no instruments in front of the driver.
This is joined by power-adjustable front seats that are wrapped in supple Nappa leather. The front seats are heated, ventilated and have a massage function.
This is topped off with 256-colour ambient lighting and an 18-speaker stereo.
There is self-levelling air suspension that has three height levels, with the tallest providing a healthy 223mmm of ground clearance.
There is some cool tech such as camping mode and a relax mode. The latter fully reclines the front seats, closes the panoramic roof blind and plays some sleep-inducing sounds such as rain noise. Camping mode is similar and allows for you to sleep in the car overnight.
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.
Both versions can be called potent, but the all-wheel-drive is express.
The rear-wheel-drive version uses a single electric motor to make 242kW and 365Nm, and the all-wheel-drive variant adds a second motor to make a combined 440kW and 645Nm.
That extra grunt drops the E07’s 0-100km/h time from 6.7 seconds to about four seconds.
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.
Both variants use a circa-90kWh Nickel-Manganese-Cobalt (NMC) battery, which is a big unit by EV standards.
It delivers a WLTP-verified driving range of 550km in the RWD version and 510km in the AWD.
The E07’s charging speed is also at the top end of the spectrum.
It has a max DC charge rate of 240kW, which Deepal said can replenish the battery from 30 to 80 per cent in 15 minutes.
AC charging is capped at 7kW, which is below other EVs that can max out at 11kW.
Our test was too limited to conduct a proper real-world test.
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.
The E07 is a big beast, weighing in at 2440kg for the AWD, and the RWD is about 100kg lighter.
Even that fancy air suspension can't hide that bulk. On smooth city streets and well-maintained motorways, the E07 is very pleasant and comfortable. But on pockmarked and undulating country roads travelling at the sign-posted 80km/h or 100km/h, it rocks and rolls considerably.
The monster 21-inch wheels are likely part of the problem, too.
After looking at my phone in the passenger seat for 20 seconds I started to get car sick… I wasn’t the only person who had that feedback.
Switching to sports mode sharpened it up a little, but the comfort mode was far too soft.
There is a custom mode where drivers can find a happy medium.
The E07 did recover much better over small imperfections, though.
The steering was well-weighted and direct, and the brake and accelerator pedal had a good feel to them with sharp responses that inspire confidence.
We spent most of our time in the all-wheel-drive variant.
It’s fast and brutally quick off the mark, but it doesn't suplex you back into your seat like some electric cars do. Instead the power delivery was more linear, with excellent traction control and no wheel slip.
Deepal has gone the extra mile and added quality Michelin EV tyres that improve grip through corners and reduce noise into the cabin.
The E07 was remarkably quiet inside, even by EV standards, with noise and tyre roar kept to a minimum.
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.
Deepal has packed the E07 with safety gear and driver aids.
It has eight airbags, ISOFIX anchor points for the two rear window seats, and a top-tether anchor for all three back seats.
There are front and rear parking sensors, a 360-degree camera and a transparent chassis view that allows you to see underneath the vehicle.
Deepal has ticked all the driver aid boxes with autonomous emergency braking with cyclist and pedestrian detection, lane departure warning and lane-keep assist, rear cross traffic alert with auto braking function, blind-spot detection, speed sign recognition and over speed alert, door open warning, rear passenger alert, safe distance alert and adaptive cruise control.
It’s nice to have all that tech, but it is over-sensitive and you end up just turning it off, which defeats the purpose of having them in the first place.
The E07 hasn’t been crash tested yet, so there's no ANCAP safety rating to report at this stage.
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.
Deepal covers the E07 with a strong but not market-leading seven-year/160,000km warranty, and the battery is guaranteed for eight years/240,000km.
It also has a tempting seven-year/140,000km capped-price servicing program that requires visits every 12 months or 20,000km, with the former on the shorter side for an EV. The RWD costs $2954.59 over the full term, compared to the AWD's $3143.90. Both outlays are competitive.