Hyundai Palisade vs Lexus RX350H

What's the difference?

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.

It’s hard to look past the value equation of the RX350h Luxury 2WD when comparing it to almost all its competitors. The pricing is on point, but there are some features missing.

However, there are very few (if any) rivals with a true hybrid powertrain (sorry, mild hybrids do not count), so the RX will capture buyers looking for environmental credentials and efficiency without going full EV.

The drive experience is much better than before and it’s all wrapped up in a very stylish package. The Lexus RX should not be ignored.

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.

Across its five generations, the RX has held significant visual appeal - especially the still-handsome second-gen version that was the first RX sold Down Under. The first-gen model skipped Australia.

The new model that launched in 2023 is a clear evolution of the car that came before, but it’s been softened and sharpened in the right areas, giving it one of the most appealing designs in its segment.

The proportions and design elements like the squat stance, unique C-pillar treatment, slimline headlights and nicely sloping roofline give it a sporty look.

In fact, I reckon it might be the best looking Lexus available today - not including the jaw-droppingly beautiful LC coupe and convertible, of course.

The interior is modern and feels like an evolution of Lexus’ previous cabin design - but elevated. The gloss black section of the dash helps here.

Levels built into the dash break up the bulk, but the interior is very grey. It could do with a dash of colour.

The synthetic leather seat trim doesn’t look premium. If you want a more expensive feeling RX, you need to pay more for a higher grade.

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 RX is a five-seat only proposition in this generation - the previous model had a seven-seat option - so if you need a third row you can look at the Lexus LM people mover or massive LX 4x4 SUV, or at any number of other three-row lux SUVs like the Volvo XC90 or new Mazda CX-90.

That doesn’t mean the cabin isn’t practical. 

Up front the seats offer excellent comfort levels and ample upper body support, but not a lot of hip support.

Lexus has changed up the door handles for the new RX and it can be complicated - initially.

The interior handles bamboozled every new person that got in my press car over the three week loan. But once you realise it’s a simple push of the thumb on the handle’s thumbpad and a gentle push, it all makes sense.

Lexus calls the electrically activated door handles an ‘e-latch’. Is it tech for tech’s sake? Probably. 

I recently reviewed the Lexus LM and commented on how much I like Lexus steering wheels and that’s true of the RX, too.

It has clearly identifiable controls and feels nice in your hands. Thankfully, the cruise control buttons are housed on the wheel too, so no annoying stalk on the wheel.

There’s plenty of space across the front row so you should avoid the awkward driver-passenger elbow bump on the centre armrest.

Under the armrest is a huge central bin that opens on the driver and passenger side. There’s also a big covered storage nook forward of the shifter and another ledge above that, as well as a sizeable glove box. 

The doors have ample storage room for bottles, but the space is almost too wide. My bottle slid around when driving so I had to lay it down.

The centre console houses two big cupholders with adjustable depth in one of them. Clever touches like this and the central bin add to the appeal.

As with the Lexus LM, I am a fan of the new Lexus multimedia set-up. It has an easy-to-navigate menu along the side, easy wireless Apple CarPlay connection, and visually appealing graphics.

It’s a world away from Lexus’ previous system. That frustrating touchpad is, thankfully, in the bin.

I quite like the gear shifter with its unusual gate and even the indicator feels and sounds premium.

Small rear windows make for a rear three quarter blind spot, but visibility is otherwise good.

On a side note, the RX has very strong air conditioning - perfect for an Australian summer.

Jumping into the second row, there’s plenty of space all around and no shortage of head, leg, knee and shoulder room. Although foot room under the front seats is tight.

As with the front seats, the rear row offers comfortable seating. Kids should be happy back there.

There’s only a small transmission tunnel so middle-seat legroom is good. And in great news for passengers, the rear backrests recline. 

Lowering the 40/20/40 split-fold rear seats for more cargo space is done via a lever on the side of the outboard seats, or by a button in the boot area. There are ISOFIX clips on the two outboard seats.

Other amenities in the second row include map pockets, two USB-C ports, knee-level air vents, climate control, and a pull-down armrest with pop-open cupholders.

Open the power tailgate and you’ll find cargo space of 612 litres with all seats in place, or 1678L with the second row stowed.

That’s a decent amount of space but not class leading. The Mercedes-Benz GLE has 630L and the VW Touareg can swallow 810L.

There’s no under-floor storage because that’s where some hybrid hardware is housed. You will find audio speakers, nice carpet, a cargo blind, two 4.0kg hooks and three top tethers. No spare, only a tyre repair kit.

The range-opening RX350h Luxury 2WD petrol-electric hybrid starts at $86,904, before on-road costs, and for that amount, the standard specification list is healthy. But it doesn’t include everything.

As well as a long list of standard safety gear (see section below), the RX350h comes with three-zone climate control, heated and eight-way adjustable power front seats, electric steering wheel adjust, rain-sensing wipers, a 14-inch multimedia set-up with wired Android Auto and wireless Apple CarPlay, digital radio, sat nav, a 12-speaker audio system, five USB-C (and one USB-A) ports and more.

It is missing a few items, however, that should be standard, such as a head-up display and wireless device charging. Those features are available as part of an options pack - or 'Enhancement Pack' in Lexus speak.

For $5000 more you get those two things and a panoramic sunroof, ventilated seats, a more digital instrument cluster and other goodies. 

You can opt for an all-wheel drive version of the 350h and that adds just over $3500 to the price. If you want the same powertrain but more gear then you’ll need to step up to the $110,575 Sports Luxury.

There’s also the petrol-only RX350 in F Sport and Sports Luxury guise, as well as the flagship RX500h F Sport Performance hybrid that tops out at $124,675.

Looking at the opening price of some of its rivals, Lexus has most of them beat.

The Mercedes-Benz GLE300d starts from $144,900, the BMW X5 xDrive30d is $134,900, Porsche Cayenne starts at $138,700 and the Volvo XC90 B5 Ultimate Bright kicks off from $100,990.

Only the Volkswagen Touareg 170TDI ($89,240) and Jaguar F-Pace P250 R-Dynamic ($83,700) are close on price.

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.

Powering the RX350h is a series parallel hybrid system consisting of a naturally aspirated 2.5-litre four-cylinder petrol engine, a front-mounted motor and a nickel-metal hydride battery. 

Lexus doesn’t provide combined torque outputs for the hybrid, but total power for the system is pegged at 184kW.

This drives the front wheels only via a continuously variable transmission (CVT).

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 official combined cycle fuel consumption figure for the RX350h 2WD is 5.0 litres per 100 kilometres, with CO2 emissions of 114g/km. You won’t get figures like that in a petrol or diesel competitor.

Over three weeks of mixed city, country, urban and freeway driving, I recorded 6.8L/100km which is not too bad given some of my spirited driving. The trip computer said 7.0L which is close to my figure.

The RX350h takes premium unleaded petrol and has a 65-litre fuel tank, so expect a range of around 950km based on our real-world consumption number.

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 old RX was competent and even nice to drive but not a patch on the likes of the BMW X5. The new-gen RX improves on that in a big way.

It offers solid acceleration from a standing start. Lexus says 8.1sec from 0-100km/h - without giving you chills. The sportiest RX is the 500h Performance hybrid and that covers the same distance in 6.2sec.

The transition from electric power to petrol propulsion is more evident in this model than it was in the LM350h people mover I tested recently - the RX is a little noisier. The CVT doesn’t help this, offering up an uninspiring engine note.

It is, however, a much more fun car to push into tight bends than the previous RX. It remains reasonably flat in corners, and pulls out of tem with ease, but can’t compare to the dynamics of the dearly departed IS sedan.

The 19-inch tyres have large sidewalls and as a result soak up harsh bumps on the road. The non-adaptive suspension is tuned for better dynamism, meaning the ride quality is on the firm side.

The front-wheel drive RX lost traction for a second on a sweeping uphill section of my drive route, but the electronic traction systems otherwise kept the big SUV in check. 

But around town in urban areas, there is very little to complain about behind the wheel of the RX350h.

The RX comes packed with standard safety gear and the SUV was awarded a maximum five-star crash safety rating from ANCAP in 2022.

Just some of the inclusions are auto emergency braking with pedestrian (day/night), cyclist (day/night) and motorcyclist (day) detection, intersection assist, emergency steering assist, driver monitoring, lane keeping aid and lane departure warning, adaptive cruise control, front and rear parking sensors, blind spot monitor (including stationary) with rear cross-traffic alert and safe exit assist to avoid 'dooring' incidents. 

I must say, Lexus’ (and parent company Toyota’s) driver assistance tech has come a long way.

In the early days of the pandemic during a rare non-lockdown period in Melbourne, I drove from Melbourne to Sydney in the previous-generation Lexus RX200 Sports Luxury.

The lane keeping system and adaptive cruise control were shockingly underdone. The cruise control would simply stop working when you encountered even a slight downhill section. 

Not anymore. The new, smoother lane keeping set-up uses subtle wheel adjustments, unlike the ping pong effect of the previous RX, and the cruise system is now very much in control of the speed.

The Lexus safety suite now operates without too much intervention and is hard to beat among its key rivals.

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.

The RX350h is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

There’s a capped-price servicing plan lasting five years and it will cost $695 per service. That's significantly less than some rivals like the Mercedes GLE.

The RX is covered by the 'Lexus Encore' loyalty program and includes complimentary service loan cars, fuel offers as well as discounts and other offers with Lexus partners.