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…
So, you’ve seen the mainstream mid-size SUV players, and you’re looking for something… a little different.
Maybe you’re even looking for something with some off-road ability, and that’s maybe caused you to steer away from segment heavyweights like the Hyundai Tucson, Toyota RAV4, or Mazda CX-5.
Am I right so far? Maybe you’re just curious to find out what one of Jeep’s main models offers in 2020. Either way, I spent a week in this top-spec Trailhawk to find out if it’s the semi-off-roader it looks to be, or if it stands a chance against the mainstream players.
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 Cherokee is perhaps not going to tempt anyone set on a mainstream mid-size family SUV. But, to those on the periphery who are genuinely looking for something different, there’s a lot on offer here.
The proposition is boosted by the Cherokee’s unique off-road equipment and compelling price tag, but just keep in mind it’s old-fashioned in more than just one way…
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.
Part of me wants to like the Cherokee. It’s a refreshingly modern take on the mid-size formula from Jeep. There’s another part of me which thinks it’s a bit soft around the edges with a little too much influence from the likes of the last-generation RAV4, especially around the rear. A smaller, heavily opinionated, part of me says it looks like the kind of car the Hamburgler would drive.
But you can’t deny the black paint with black and grey highlights looks tough. The raised plastic bumpers, small wheels, and red powder-coated recovery hooks speak to this SUV’s off-road ambition. And the package is nicely rounded out with LED light fittings front and rear which cut nice angles around this car’s edges.
Inside is still very… American, but this has been toned down significantly from past Jeep offerings. There are almost no truly awful plastics now, with an abundance of soft-touch surfaces and nicer interaction points.
The wheel is still chunky and leather-clad though, and the multimedia screen is an impressive and bright unit taking centre stage in the dash.
My main complaint with the cabin is the chunky A-pillar which eats a bit of your peripheral vision, but otherwise it’s a plush design.
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 plushness makes for a comfortable environment, particularly for front passengers who benefit (in this case) from power adjustable seats, telescopically adjustable steering column and faux-leather trimmed padded surfaces pretty much everywhere.
There are small bottle holders in the doors, big bottle holders in the centre console, a large armrest box, and a small trench in front of the transmission stick. Sadly the Cherokee seems to miss out on the secret compartment under the seat base which the smaller Compass gets.
Back seat occupants get a decent, but not impressive, amount of space. I’m 182cm tall and had a small amount of airspace for my knees and head. There are small bottle holders in the doors, pockets on the back of both front seats, a set of movable air vents and USB ports on the back of the centre console, plus large bottle holders in the drop-down armrest.
Seat trim all-around has to be commended for being ultra-soft and comfortable, albeit not super supportive.
The second row is on rails, allowing you to max out boot space if need be.
Speaking of boot space, it’s a tough one to compare to other models because Jeep is insistent on using the SAE standard rather than the VDA standard (as one is more or less a liquid measurement, and the other is one made up of cubes, they are impossible to convert). Regardless, the Cherokee managed to consume all three items in our luggage set with ease, so it at very least has a competitive standard boot capacity.
The floor in our Trailhawk was carpeted, and a luggage cover comes standard. Worth noting is how high the boot floor is off the ground. This limits the space available, but is required for the full-size spare hidden under the floor, a must for long-distance drivers.
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.
Does it represent good value for the price? In a word: Yes.
Let’s take a look. The Trailhawk is the most expensive Cherokee you can buy, yet at $48.450 you’ll get stacks of gear. In fact, you’ll get more stuff than is packed in to most of its mid- to high-spec mainstream rivals.
The question is whether you’ll even want it. This is because while the Cherokee might tick key mid-size spec boxes, its real advantage is in the off-road gear sitting underneath it.
This is one of very few front- drive biased, transverse-mounted engine SUVs to get a locking rear differential, low-range transfer case, and a series of rather serious computer-controlled off-road modes.
Impressive stuff if you’re ever going to take it onto sand or scrabbling up gravel surfaces, potentially of little value if there’s no chance you’ll be doing any of those things.
Regardless, the standard road-going kit is great. Included is LED headlights, leather seats, keyless entry and push-start, an 8.0-inch multimedia touchscreen with Apple CarPlay, Android Auto, sat nav and DAB+ digital radio, auto wipers, anti-glare rear vision mirror, and 17-inch alloys.
Those wheels might seem a bit small by high-spec SUV standards, but are more focused on being off-road ready.
Our car was also fitted with the ‘Premium Pack’ ($2950) which adds some luxury touches like heated and cooled front seats with memory power adjust, carpeted boot floor, distance control for the active cruise (more on that in the safety section of this review), and black painted wheels.
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 Cherokee shows its star-spangled heritage here with a rather old-school drivetrain.
Under the bonnet is a 3.2-litre ‘Pentastar’ non-turbo V6. It produces 200kW/315Nm which you might note isn’t much more than a lot of turbocharged 2.0-litre alternatives these days.
If you were hoping for a diesel as a more attractive option for long-distance travel, tough luck, the Trailhawk is V6 petrol only.
The engine is perhaps at odds with the modern nine-speed torque converter automatic transmission, and the Trailhawk is one of the few front-biased, non-ladder chassis-based vehicles to have a low-range crawl gear and locking rear differential.
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.
In the spirit of keeping the hard-done-by fuel conglomerates in business, this V6 is as thirsty as it sounds. This is compounded by the fact that the Trailhawk weighs in at close to two tonnes.
The official claimed/combined figure is already not great at 10.2L/100km, but our week-long test produced a figure of 12.0L/100km. Not a good look when many of the Cherokee’s mid-size competitors are at least in the single-digit range, even in real-world testing.
In a small concession, you’ll be able to fill up (annoyingly frequently) with entry-level 91RON unleaded. The Cherokee has a 60L fuel tank.
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 Cherokee drives pretty much exactly how it looks, soft and ‘murican.
As thirsty as the V6 might be, it’s fun in a kind of retro way to be behind the wheel. It makes lots of angry noises and flies up the rev range (into fuel-drinkin’ town) all too easily, although despite that you might notice you’re not going particularly fast the whole time.
This is largely down to the Cherokee’s overbearing weight. Not great for fuel usage, it does have benefits for comfort and refinement.
On tarmac, and even gravel surfaces, the interior is impressively quiet. There’s little road noise or suspension rattle, and even the fury of the V6 is more of a distant thrum.
Gravity takes its toll in the corners, where the Cherokee hardly feels like a confident apex carver. The steering is light though, and the long-travel suspension is soft and forgiving. This makes for a refreshing SUV experience which places the focus solely on comfort over sportiness.
It’s also a nice point of difference from many mainstream competitors which seem hell-bent on making mid-size family SUVs handle like sports sedans or hatchbacks.
A test of the off-road features was a little outside the scope of our regular weekly test, although a thrashing down a few gravel tracks only served to confirm my confidence in the comfort suspension tune and stability of the standard all-wheel drive mode on offer.
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.
In its last update the Cherokee acquired an active safety suite consisting of auto emergency braking (AEB) with pedestrian detection, forward collision warning, lane departure warning, blind spot monitoring, rear-cross traffic alert, and active cruise control.
The Trailhawk Premium Pack adds distance control (via a button on the steering wheel).
The Cherokee is also armed with six airbags, a reversing camera and parking sensors. It has dual ISOFIX child-seat mounting points on the outer rear seats.
Only four-cylinder Cherokees have been ANCAP safety tested (and scored a maximum five stars in 2015). This six-cylinder version does not carry a current ANCAP safety rating.
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.
Jeep has upped its ownership promise in the past few years with what it calls the “there and back guarantee”. This consists of a five-year/100,000km warranty and matching capped price service program.
It’s a shame the warranty is distance-limited, but time-wise is on par with Japanese makers. While the capped price service program is welcome, it's almost twice as expensive as an equivalent RAV4.
According to Jeep’s online calculator, services varied from $495 to $620 on this particular variant.
Roadside assist is offered beyond the warranty period provided you continue to service your vehicle at an authorized Jeep dealership.