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 actually the Carnival that Kia always wanted.
See, the last Carnival, the one this replaces, was Covid compromised, missing out on key technologies, as well as skipping an in-depth ride and handling localisation program, due to part supply issues and a freeze on international travel.
This one, though, addresses all of that, which is why you get a new cabin experience, new tech, and a complete overhaul of the steering and handling.
It is, however, significantly more expensive, right across the range.
So, is the Carnival still worth it? Let’s 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.
Ok, here's the rub. Everything you just read could well be pointless. You like the Carnival. In fact, it sometimes makes up close to 90 per cent of the sales in its segment, and outsells all of its competitors combined.
So whether I like it or not, I suspect you'll be buying one anyway.
But I can say this - the new Carnival improves the formula right across the board. Well, everything except for price.
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.
Surely the greatest trick the Carnival pulls off, and it does so convincingly, is that it manages to make something so quintessentially uncool, the people-mover, and make it look good. Somehow sporty, even.
I like the Carnival's big, bold and blacked-out front end of the GT-Line, and with its two-tone 19-inch alloys, wide stance and low ride height, it looks almost like some mad attempt at a JDM tune car, rather than a sensible people mover.
Elsewhere, the boxy profile, the sharp body creases and the third-row compartment that kind of juts over the rear tyres like a house that's been extended all somehow work, and give the Carnival far more street cred than you might expect.
Inside, we spent time only in the flagship GT-Line and its GT-Line Lite sibling, and both present as calming, comfortable spaces, and Kia's minimalist approach to combining the climate and audio controls into a single strip (it's functionality can be changed by pushing a button) helps keep the cabin fuss free.
The tech in the top-spec models feels modern and on-point, too, and the materials are all nice under the touch. Be warned though, the cabin plastics get progressively worse the further back you sit, and the third row is cocooned by hard and scratchy plastics.
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 Carnival measures 5115mm in length, 1995mm in width and 1775mm in height, and it rides on a sizeable 3092mm wheelbase.
And those mini-van dimensions have a predictably positive impact on luggage space, with room growing from 627 litres with all seating rows in place, to a massive 2827 litres with the third row stowed.
The key practicality perk here, though, is space, and lots of it. At 175cm, there was ample room for me in the middle row, and you can configure the cabin to your liking, too. You can slide the row on rails, for example, to prioritise leg room where you need it, and the middle seat folds down to reveal cupholders in a kind of hard plastic travel tray.
But even in the third row I could easily get comfortable, though head room begins to get a little tighter. There are cupholders and USB connection points, too, and I can honestly say you could send full-size humans back there and not feel overly guilty about it.
The Carnival will tow 2000kgs braked, too.
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.
Bad news first. The price is higher this time around, right across the five-trim line-up, with the prices up between around $2600 and $5300, depending on which trim level you’re shopping for.
Prices start at $50,150 for the entry-level S petrol, and climb to $72,910 for the top-spec GT-Line diesel. There’s also a GT-Line Hybrid, which tops the group at $76,210, but it’s not here yet, so we’ll cross that electrified bridge when we get to it and stick with the ICE range for now.
The range opens with the S ($50,150 petrol, $52,380 diesel), which scores 17-inch alloys, LED headlights and DRLs, heated mirrors, cloth seats, an electronic parking brake, and a smart key with push-button start, which is new for this update.
On the tech front, there is a new integrated 4.0-inch driver display, and a new 12.3-inch central screen with Apple CarPlay and Android Auto, linking with an eight-speaker sound system, now with a surround-sound function.
Stepping up to the Sport ($56,050 petrol, $58,280 diesel) adds 18-inch alloys, rear LED combination lamps, a leather steering wheel and shifter, and dual-zone climate up front with single-zone temperature control in the second row. New for this update is a wireless charging pad and artificial leather seats.
Next is the Sport+ ($62,380 petrol, $64,610 diesel), which gets a whole host of new safety equipment, which we will come back to in a moment, along with a powered tailgate, automatic sliding doors and auto windows, and heated seats in the first and second rows. It also ups the tech, with twin 12.3-inch screens taking care of multimedia and driving info duties.
Then comes the GT-Line Lite ($66,350 petrol, $68,580 diesel), which is fitted with bigger 19-inch alloy wheels, scores LED interior lighting, gets a dual-pane auto sunroof and some chrome embellishments on the exterior. The trade-off, though is that the powered windows are now for the driver only, as is the powered front seat.
Finally, there’s the flagship GT-Line ($70,680 petrol, $72,910 diesel), which nabs dual-projection headlights, a heated steering wheel, a 12-speaker BOSE sound system, ventilated seats up front, a big head-up display and a digital rear-view mirror, along with a slightly better interior treatment and the return of the auto window and powered seat to the passenger side of the car.
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.
There are two ICE options on the table here. The first is what I reckon is the lesser of the two, a 3.5-litre petrol V6, producing a rev-happy 216kW and 355Nm.
The better option, I think, is the 2.2-litre, four-cylinder diesel, which makes 148kW and 440Nm, and just suits the nature of the car a little better.
Both pair with an eight-speed automatic, and send their power to the front tyres.
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 petrol engine will sip a claimed 9.6 litres per hundred kilometres on the combined cycle, and produce 220g per kilometre of C02. The diesel lowers both those numbers, to 6.5 litres and 170 grams.
Both models are fitted with a 72-litre fuel tank, which means you’ll be sailing well north of $100 to fill one up.
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.
Forgive the horrific paraphrasing, but it seems rumours of the death of diesel have been greatly exaggerated, at least when it comes to the Kia Carnival.
Get this – diesel sales make up some 90 per cent of the Carnival's total haul, with petrol providing a pittance towards the sales total, presumably being picked up by fleet buyers.
And to be honest, that means nine out of 10 people are making the right choice here. Yes, the petrol makes more power, but it's the torque on offer from the diesel that makes pushing the Carnival around feel far more effortless.
The petrol engine can definitely get you moving, but it feels a bit too rev-happy and thrashy when you really put your foot down, and its significantly thirstier to boot.
The diesel isn't perfect – the thrum of the engine is a constant companion whenever you put your foot down, and there's actually too much torque on offer at times, like if you're accelerating up hill from a standstill on a damp road, and so the front tyres can scrabble and scramble for grip.
But it otherwise so perfectly suits the nature of the Carnival that it is definitely the best and most satisfying choice.
Another big change for this update is the fact that Kia's complete ride and handling program has been rolled out here. Kia says local work done on the outgoing car, the one this replaces, was curtailed by Covid and bushfires, and so ended up being done by correspondence.
This one, though, has had the whole enchilada thrown at it, and it shows. They've succeeded in making a bigger car feel smaller around you. It's not a sports car by any measure, but nor does it ever feel too big and unwieldily.
Part of that is down to the steering, which is direct and confidence inspiring, but mostly I suspect it's because of the ride, which is firmer than you might expect in a family hauler, but also offers a connection to that road below that makes you feel in control.
Whether a firm-ish ride is a perk or negative is up to you, but it definitely works for me.
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.
Part of the change package for this updated Carnival is in its safety kit, some of which simply wasn’t available when Kia launched its predecessor.
Which is why every model now gets a centre side airbag, 'Forward Collision Assist AEB', 'Rear Occupant Alert', 'Trailer Stability Assist' and front parking sensors, joining the rear ones that were already there.
Sport+ Models and up now add a 'Blind Spot View Monitor' and rain-sensing wipers, as well as rear AEB through the 'Parking Collision Avoidance' function.
I have to say, though, when your entry-level car is $50k-plus, there’s no real excuse for limiting the best safety kit to the upper-spec models.
Also standard are lane keep assist, with 'Lane Follow Assist', multi-collision braking, a speed-limit warning (which you will turn off) and a reversing camera.
The Carnival range carries a five-star ANCAP safety rating, which it earned in 2021.
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.
Like all Kias, the Carnival arrives with a seven-year, unlimited-kilometre warranty, with capped-price servicing throughout.
Kia’s servicing costs are higher than some of its competitors, though, so you might want to compare them, as well as compare what’s included, and the diesel model will usually cost slightly more to maintain than the petrol version.
Service intervals are every 12 months or 15,000kms, and while the brand is still finalising the petrol servicing costs, the diesel prices are $386, $682, $480, $869, $434, $845 and $461, covering the first seven years of ownership.