Hyundai Palisade vs Lexus LX

What's the difference?

The new hybrid powertrain for the Hyundai Palisade is a welcome addition for families looking for an efficient three-row SUV that doesn’t drive like a brick and looks good at the school pick up or client lunch. Overall, the Palisade remains a solid, all-round package that deserves praise and the eighth seat is an added bonus.

Huge specification in terms of convenience and safety gear are matched by an equally huge range of abilities in this vehicle. As well as rock hopping with the best of them, this is also a phenomenal touring rig and a more-than-capable off-roader. Of course, whether you can see yourself clambering up the side of a muddy creek crossing in $202,000 worth of vehicle is a personal matter, but rest assured, the Lexus will do it if you ask it to.

In the case of the hybrid LX, however, the vehicle now has an extra dimension to cover off, and from what we can see, it does take the efficiency and running costs of the big wagon to a new, better place. Mind you, that may only be the case if diesel continues to cost a dollar-a-litre more than petrol at the bowser.

The shift to petrol power also brings with it a level of mechanical background noise that we’re not entirely sure fits the Lexus legend, while additions such as the camera-based rear-view mirror system seems to be a conversation starter rather than an actual improvement.

The Hyundai Palisade leans heavily into a more American look. It’s unapologetically big and boxy, with a squared-off silhouette that makes no attempt to hide its size. Up front, there’s a bold grille flanked by oversized vertical LED light signatures, while the rear mirrors that same stacked lighting design. The bonnet is long, the proportions are broad and everything about it is geared towards presence.

The dark-tinted windows, clean body panels and metallic accents gives it a polished edge. It’s the kind of SUV that feels as much at home at a client lunch as it does in the school pick-up line.

Inside, the cabin is genuinely spacious and even without a sunroof, it doesn’t feel closed in. The dashboard has a softly curved, vertical layout that keeps things feeling open rather than bulky.

Thankfully, Hyundai hasn’t gone all in on touch controls and there are still plenty of physical buttons to fiddle with. You’ve got dual 12.3-inch displays and a 14-speaker Bose sound system doing the heavy-lifting with the 'visual' tech side of things.

Thickly padded touchpoints and premium materials round out a cabin that's simply a pleasant space to spend time in.

In a styling sense, that big, bold, deep grille at the front won’t be to everybody’s liking, but we reckon it’s pretty well matched with the otherwise taut skin of the LX’s body.

Inside, the plush look and feel is the dominant factor, but if you look really closely, there’s a fair bit of generic Lexus stuff on show. Is that a criticism? Hardly. The leather looks and feels luxe and only some hard plastics (such as on the door cappings) belie the car’s LandCruiser origins.

Practicality is one of the Hyundai Palisade’s strongest points, and it starts up front. The first row is properly cavernous and, unless you’re the Hulk, you won’t be knocking elbows with your passenger. The seats themselves are wide, deep and well cushioned, making them an easy place to spend a few hours on the road.

The second row continues that theme of space. It’s wide enough to comfortably fit three adults. I tested that with three friends over a weekend trip and no one complained. That said, the bench-style seat does mean less defined support. My nine-year-old pointed out he tends to slide around a bit and that the cushioning is on the firmer side.

Unsurprisingly, the third row is usable but with some compromise. You can fit three small kids or two adults, though legroom is tight unless you slide the second row forward.

Access to both rear rows is easy thanks to the wide door openings and relatively low step-in height, which makes a difference when you’re loading kids in and out.

Amenities across all three rows are well thought out. Up front, you’ve got a good mix of storage options like a large glovebox and centre console, two cupholders, two drink bottle holders, and a handy open shelf that’s ideal for a handbag or Saturday night's takeaway. Charging is taken care of by three USB-C ports, a 12-volt socket and a wireless charging pad.

The second row gets four cupholders, a couple of bottle holders and map pockets, as well as a small drawer that's a good size for snacks or smaller devices. In the second row there’s also climate control, ceiling-mounted air vents and two USB-C ports.

Even the third row doesn’t feel like an afterthought. There are two USB-C ports, four cupholders, directional air vents, plus two ISOFIX points and two top-tether anchors for families juggling car seats.

Tech is easy to live with. The media system is intuitive, the touchscreen is responsive and you get wireless Apple CarPlay and Android Auto alongside built-in navigation. Hyundai’s Bluelink app also allows for remote functions like pre-conditioning the cabin or checking the car’s location, which comes in handy more often than you’d think.

Boot space is another win. With the third row folded, you’ve got up to 712L to work with, and the flat loading area makes it easy to slide in prams, sports gear or a full grocery run. There’s also a bit of underfloor storage for smaller items, along with a full-size spare and a powered tailgate in this grade.

Like many hybrids, cargo capacity takes a bit of a blow. In this case, placement of the battery under the cargo floor means a reduction in luggage capacity from 1109 litres to 899 litres. In the seven-seat variant, capacity is 883 litres with the rearmost row folded flat. The rear seat folds 60:40 and there are good, solid tie-down points in the rear. There’s no under-floor storage, however, apart from a small compartment just behind the rear seat which locates the tools and safety triangle.

The tailgate is powered (if a bit slow in its action) and there are cup-holders atop each suspension tower, clearly a hang-over from the seven-seat variant which is not available in F Sport trim. The cargo blind is a good addition, as is the 1500-Watt power socket in the cargo bay.

In the cabin, there are plenty of grab handles and the side steps give shorter folk a leg up when entering or leaving. Once you’re in, the front seats are terrifically comfortable as well as featuring a massage function on top of the heating and cooling functions. The steering wheel is also heated.

Paddle shifts might seem odd in a vehicle like this, but they are brilliant in off-road situations, although you need to first select manual mode on the shifter to have the paddles hold each gear for more than a few seconds in most of the on-road driving modes.

Speaking of the shifter, Lexus has seen fit to once again reinvent this simple control. You now need to pull the handle towards you and up for Reverse, across and down for Drive while Park remains a separate button even though it looks like just another icon on the lever.

A pair of cup holders live over to the passenger’s side of the centre console, and there are a pair of USB charge ports as well as an HDMI port in the dashboard. But the switches for the power windows are located almost directly under the driver’s interior door pull, forcing some unorthodox wrist geometry.

At least the buttons for the climate control and off-road functions such as diff locks and ride height are, indeed, buttons and not menu items. The simple knob to control the stereo on-off and volume is a great touch, too. So is the cooled centre console under a cover that opens from either side.

The rear seat is big and wide but the high floor dictated by the body-on-frame construction means those with long legs will have their knees bent while ever they’re in the back seat. The seat cushion itself is pretty flat, too, but the backrest does recline through a wide range of angles.

Reading lights, lots of air vents and a full set of climate controls ease the pain of riding in the back, but if you want cup holders, you need to keep the centre rear seat free so the armrest that houses the holders can be lowered and snapped open. Adding to the impression that plenty of thought has gone into the rear seat environment are the pull-up sun blinds on each window. Why don’t all cars have these?

While the LX line-up incorporates off-road oriented versions dubbed Overtrail, that specification is not available in the hybrid variety LX700h. Instead, the LX hybridised line-up kicks off with the Sport Luxury grades in either five or seven-seat layouts and a list price of $196,000 and $199,800 respectively. The F Sport is the new LX flagship model with its $202,000 price-tag (all prices are plus on-road costs) and is only available in five-seat configuration.

As you might imagine for a flagship badge for a maker like Lexus, there’s really nothing missing from the specification. In the case of the hybrid variants, that includes 22-inch alloy wheels, power sunroof, full leather trim and a hands-free tailgate. Those feature are part of the Enhancement Pack on lesser versions, but have been added to all hybrid LXs.

You also get four-zone climate-control, heated, cooled and massaging front seats, keyless entry and start, steering wheel-mounted controls, paddle shifters, automatic headlights and wipers, heated mirrors, soft-close doors, 12.3-inch touchscreen, digital radio, embedded sat-nav, wireless Apple CarPlay and Android Auto, head-up display, premium audio system and pretty much everything else you’ve ever seen fitted to a car.

The F Sport variant we’ve tested here is the big daddy and adds four-way adjustable head rests in the front, a heated steering wheel, specific aluminium trim, aluminium pedals, F Sport-specific gear knob, ventilated and heated rear seats, and a digital rear-view mirror.

Under the bonnet, the Hyundai Palisade has made the full switch to hybrid, with the same powertrain offered across both trim levels. It pairs a 2.5-litre four-cylinder turbo-petrol engine with an electric motor, sending power to all four wheels.

Combined outputs sit at 245kW and 460Nm, which is a noticeable step up from the outgoing V6 petrol and 2.2-litre diesel it replaces.

On the road, the six-speed automatic does a smooth job of working through the gears, and the hybrid system keeps things impressively quiet at lower speeds. You’ll still notice the transition when the petrol engine cuts in, but it’s not especially intrusive.

It also retains a braked towing capacity of 2000kg, which should be enough for smaller weekend toys.

The hybrid driveline of the vehicle we’re looking at here marks a further expansion of buyer choice when it comes to how their Lexus LX is powered. The twin-turbocharged petrol and diesel variants will continue alongside the newcomer, although you can bet Lexus (and Toyota) will be watching the sales charts closely to see where consumer tastes fall.

The hybrid set-up here starts with the twin-turbocharged 3.4-litre petrol V6 (a lot of people - Toyota included - are calling it a 3.5, but at 3445cc, it’s not) from the Lexus LX600.

But instead of bolting directly to the 10-speed transmission, in this case, there’s a single electric motor and clutch unit sandwiched between the engine and transmission. That means the Lexus retains mechanical four-wheel drive, while the electric motor can provide extra urge for acceleration or towing as well as offering EV-only operation when it’s required (mainly in stop-start traffic).

Crucially, it also means the vehicle retains those traditional off-road qualities of low-range gearing and permanent four-wheel drive. The electric motor also contributes torque to the equation when the driver selects either Rock, Dirt or Deep Snow modes to maintain a steady flow of Newton metres.

The petrol V6 contributes a healthy 305kW and 650Nm to the picture, while the electric motor adds a further 36kW and 250Nm. When all that’s harnessed up, there’s a total of 341kW of power and 790Nm of torque on tap, allowing for a braked towing capacity of 3500kg. It also makes this variant the torquiest Lexus LX ever.

Interestingly, Lexus says the conventional 12-volt starting system and alternator for the petrol engine, means that unit could continue to operate if any part of the EV system failed.

One of the big questions over hybrid drivelines in off-road conditions is what happens if the vehicle suddenly finds itself partly under water. In this case, says Lexus, there are additional waterproofing measures which should prevent any problems mid-creek.

The F Sport grade gets a Torsen (torque-sensing) rear differential and firmer dampers for an overall sportier feel.

At 2780kg, the LX hybrid is heavy, and is at least 100kg more than the LX600 due to the batteries and other hybrid gear.

The new hybrid Hyundai Palisade has an official combined fuel cycle figure of just 6.8L/100km and a 72L fuel tank, giving this a theoretical driving range of just over 1000km, which is excellent for a big family mover. My real-world use, after doing a solid mix of open road and urban driving this week, is 7.7L/100km which is a decent result, especially given I’m not shy about utilising power!

Here’s where the hybrid driveline really comes into its own. On paper, at least.

Despite the added kiloWatts and Newton metres, the 700h manages an official fuel consumption figure of 10 litres per 100km. That compares with 11.9/100km for the 305kW LX600, although it’s still more than the 8.9L of the 227kW diesel-powered LX500d.

But the hybrid’s big advantage will come in city and suburban traffic where the stop-start nature of things will enable the driveline to harvest braking energy and turn that back into electricity for the battery.

Our testing showed an average of 11.2 litres per 100km in mixed conditions which blew out to 13.0 litres with more urban running. That’s pretty handy in the context of a vehicle like this and won’t be far from the real-world numbers of the diesel LX.

The Lexus carries 98 litres of petrol, split between one 68-litre tank and a 30-litre sub tank. That should give it a theoretical range of almost 800km, but again, that will depend largely on where and how it’s used.

On the move, the Hyundai Palisade hybrid system feels like a worthwhile addition. Power delivery is smooth and there’s enough on tap to keep up with traffic without any stress. You’ll occasionally notice the transition between electric and petrol power, particularly when accelerating harder from a standstill, but it’s otherwise fairly well resolved.

Where the Palisade really shines is in comfort. It’s an easy cruiser, whether you’re on the highway or just doing the school run. The suspension strikes a nice balance as it’s well-cushioned without feeling overly soft, and there’s enough road feedback to stop it from feeling floaty. For something this size, body roll is also kept in check, so it doesn’t feel out of its depth on a winding road.

Around town, it’s just as easy to live with. The steering has a reassuring weight to it and feels responsive enough, while visibility from the driver’s seat is excellent. You sit high, with a clear view out the front and sides.

The only real quirk is that the regenerative braking can feel a little firm at lower speeds, particularly in stop-start traffic, and it takes a bit of adjustment to smooth things out. But it’s not a deal breaker.

Cabin noise is kept impressively low, even at highway speeds, making it easy to hold a conversation across all three rows, something my passengers appreciated on a recent weekend trip.

Despite its size, it’s not as intimidating to manoeuvre as it looks. The turning circle is a relatively tight 11.94 metres, and the 360-degree camera system does a lot of the heavy lifting when parking. You’re still aware of its footprint in tighter spaces, but it’s far from cumbersome.

At low speeds, threading your way through traffic or parking, the LX feels like it needs a lot of real estate. Which makes sense given the 5.1-metre overall length that puts it on par with a lot of dual-cab utes. The width of almost two metres plays into things, too, and reversing down the average driveway will often have the sensors chirping at you constantly.

What’s interesting, though, is the way the Lexus seems to shrink once you’re up and running in a more open setting. Even a winding road reveals a car that is easy to place in corners and seems to feed back lots of the right sort of information in terms of what the wheels are doing and where they’re placed. The result is that you can actually hustle the LX along quite smartly if you need to.

The ride remains composed yet there’s a level of control that helps keep the big, high LX relatively flat through corners and responding sharply to the helm. Even those huge wheels and tyres and their corresponding unsprung mass don’t intrude. It’s a great trick.

Less easy to appreciate, however, is the driveline, specifically the twin-turbo petrol V6. Frankly, it’s just not as refined as we were expecting. I wouldn’t mind betting Lexus has tuned the exhaust system to make the LX sound like there’s a petrol V8 under that heavily sculpted bonnet. And at low revs, it kind of works with a rhythmic, muted, yet guttural sort of bass coming through.

But rev it harder and the engine soon reveals itself to be a V6 with all the secondary vibration and resonance that implies. Simply, this vehicle is neither as smooth nor as quiet as the Lexus brand would suggest and the harder you rev it, the more it descends into NVH (noise, vibration and harshness) territory. The issue is made worse by the fact that the rest of the package is so darn quiet.

Even the stop-start - a technology that is now well understood - doesn’t seem quite as slick as it should be. Taking off from a green light with the petrol engine stopped, the Lexus often produces a small `sonic bump’ from the driveline as the V6 fires into life. It’s felt more than heard. But it’s still puzzling in the context of this make and model.

The transmission, meantime, is as silky as you’d imagine with upshifts and even downshifts that are barely perceptible. It would be nice, though, if the transmission obeyed the paddles a bit more faithfully. As it is, the chosen gear is only held for a few seconds unless you also pull the shift lever into manual mode.

I’ll also take issue with the rear-view mirror that includes a camera view as well as a conventional mirror option. I can see the point of having a camera-view mirror (when the cargo area is piled high, for instance) but I’ve never yet met one that works properly. The problem is that the camera view that pops up on the mirror’s screen is never as faithful as it should be. Also, if you wear glasses to read, you’ll also need them to focus on the image properly. While a conventional mirror has the same depth of field as looking through the windscreen, the camera-generated view does not. Also, when used through a wet rear window in low light, the camera view is borderline useless. This tech clearly has a ways to go.

It will come as no surprise to learn that the expensive LX range is well equipped safety wise, nor that the flagship version of that range features every driver aid ever dreamed up by engineers.

That includes autonomous emergency braking that incorporates pedestrian and cyclist recognition, intersection turn assist, lane-keeping assistance, lane-departure warning, blind-spot monitoring, road-sign recognition, hill-start assist, front and rear parking sensors, a reversing camera with 360-degree views, rear cross-traffic alert and braking and tyre-pressure monitoring.

On top of that, the LX gains the safety additions revealed at the 2025 facelift of the LX line-up, including emergency driving stop, safe-exit monitoring and a forward-facing camera.

There are no less than 10 airbags in the LX, including rear-seat cushion airbags and side-curtain airbags for every outboard seating position.

What’s perhaps even more impressive is that the driver aids are beautifully calibrated to the point where other carmakers should pay close attention when calibrating their own. Where some cars physically fight the driver for control of the wheel in the name of lane-keeping assistance, the Lexus instead offers a polite suggestion of a better course than the one the driver is currently on.

The Lexus LX series hasn’t been crash tested by ANCAP, but the 300-Series LandCruiser on which it’s based scored the full five safety stars when it was tested in 2022.

Ownership for the Hyundai Palisade is fairly straightforward and competitive for the segment. It’s backed by Hyundai’s five-year, unlimited-kilometre warranty, which can be extended by a further two years if you service exclusively through the brand.

Servicing costs are also reasonable for a large SUV. You can pre-purchase a three-, four- or five-year plan, with the latter coming in at $2630, which stacks up well against similar rivals.

Intervals are set at every 12 months or 10,000km, and with more than 100 service centres across the country, access shouldn’t be an issue for most owners.

Lexus offers a five-year, unlimited-kilometre warranty on its vehicles and throws in three years’ worth of subscription to the Lexus Encore owner privileges and benefits program. Those extras include Lexus on Demand, valet parking, roadside assistance and even complimentary access to Qantas airport lounges.

There’s also five years of capped-price servicing available.

As well as the overall five-year/unlimited kilometre warranty, there’s eight years and 160,000km of cover for the hybrid battery. That can be extended to up to 10 years provided the battery is checked for degradation every year after the fifth year.

Servicing for the LX is every six months or 10,000km which is much more frequent than much of the competition, but reflects the heavy-duty nature of the vehicle.

Lexus has about 30 dealerships in Australia, primarily in urban locations, but for many servicing and repair jobs, a Toyota dealership or service centre should be able to handle things on the LandCruiser 300-Series-based LX.