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 a review with a difference. For three days, I had a Lexus RX450h and thought it was pretty terrible to drive. Every time I turned the steering wheel, the tyres would squeal as though they weren't inflated with air but instead with tiny, fluffy kittens.
I was bitterly disappointed. How could a car get out the door of the Lexus engineering division with such an aversion to corners. I mean, I know it's not meant to be a corner-carving monster, but normal cornering should have been okay.
After those three days, I'd had enough. The low tyre pressure warning light came on and the penny dropped. I hadn't even thought to check the pressures. They were very, very low. Like only at two-thirds of recommended. So after visiting three separate establishments to find a working pump, I had a whole different car.
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 RX is a little frustrating - it's going after Mercedes and BMW and Audi in a hotly-contested space and falls over in a couple of key areas. The media/sat nav system is hopelessly outdated and the drivetrain fails to deliver a significant performance or fuel benefit (although, given its 2.2 tonnes, perhaps it delivers a miracle).
It does come with a rock-solid, scandal-free reputation, a reputation for spectacular customer service, it has a lovely cabin and it's certainly an individual looker. For plenty of people, that's quite enough.
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.
There's a lot of RX and there's a lot going on in that creased, folded and teased sheetmetal. It's a unique design, with a huge 'spindle grille', big lights and the fast glass both front and rear.
It positively screeches Lexus DNA and was a polarising force on our driveway for the week. Most weren't sure, but knew for certain it was a Lexus.
Aggressively flared wheelarches like this aren't common on SUVs (although the squared-off ones are). It's right up on stilts, but the 20s you find it rolling on help to reduce its visual bulk.
That wacky rear quarter glass reminds me of the BMW i3's but it's a Lexus SUV signature. It's quite striking. Do I like it? Not really, but that's completely subjective. You can tell, though, it's built tight as a drum.
Inside is a bit calmer, beautifully laid-out and built to last. The materials are almost all top notch, with lovely switchgear and the real leather is really nice.
There is absolutely nothing avant-garde in there (apart from maybe the pinstripe effect on the centre console), it's all terribly comfortable and easy on the eye. But not exciting, though not all Lexuses are.
This particular car is very US-centric and, if I may, a particularly sunny and humid part, so it can't be too wacky.
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 is plenty of room inside this big unit, which is very welcome. Front seat passengers have lots of storage, such as a deep central bin under the armrest, dual cupholders and big door pockets with bottle holders.
Step into the rear and there is a ton of leg and headroom although the transmission tunnel intrudes slightly for the middle passenger. Chuck them out, drop the armrest and you have two more cupholders and each door has pockets and bottle holders.
The boot is pretty big considering the angle of the rear glass. You start with 453 litres (but an expanse of flat floor), which rises to 924 litres with the split-fold seats down. That seems conservative given just how much space you appear to have.
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 RX450h F Sport lightens your bank account of $102,460 before on-road costs, the only hybrid SUV within cooee of this price.
That nets you 20-inch alloys, a 15-speaker stereo, dual-zone climate control, heated and cooled electric front seats, reversing camera, that ever rare CD player, keyless entry and start, a solid safety package, reversing sensors, active cruise control, sat nav, a massive sunroof, auto LED headlights, head-up display, partial leather interior, power tailgate, auto wipers and a space-saver spare.
The Lexus media system is run from the gigantic dash-mounted screen that is shamed only by those massive Tesla units.
Sadly, the joystick-style control remains as does the very confusing software system that is less than delightful to use. It's such a shame that a tech-laden machine is let down by the world's most baffling entertainment system.
Once you get it working and understand it, it's okay, I guess, but several years into this job I still can't easily fathom how it works. And that naff analogue clock...
F Sport cars also pick up adaptive suspension and a several driving modes to liven things up.
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.
You can choose three different powertrains in the RX - a 3.5-litre V6, a 2.0-litre turbo four-cylinder, or this one, the 3.5-litre V6 with hybrid.
As a series hybrid it can run for short distances on electric only before firing up the V6 to supply charging and motivation.
The 3.5 produces 193kW/335Nm along with the electric motor. That torque figure seems low and it probably is, but that's a function of the weird way of measuring torque from a hybrid unit. The combined power figure, however, is 230kW.
The hybrid system is hooked up to Lexus' CVT auto and sends power to all four wheels. Lexus says the 450h will complete the sprint from 0-100km/h in 7.7 seconds, which isn't bad for a 2210kg SUV.
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 figure is listed as 5.7L/100km. And, uh, yeah, we didn't get that. I did manage 8.9L/100km over the week, which included a long motorway run from Sydney up to the Blue Mountains (a roughly 160km round trip).
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.
Right. So this is a salutary lesson about tyre pressures. The first few days the tyres were only pumped up to 200kpa (29psi). That's an easy 100kpa (14psi) short of the required 300 (43psi).
Every time I, or my wife, went around a corner, the big Dunlop Sport Maxx SPs would squeal and squirm and it was most unsatisfactory.
So check your tyres, because the extra 100kpa makes all the difference. Also, the number of service stations it took to find a working pump was unacceptable. Pull your socks up, Sydney.
Anyway.
Correct tyre pressures enacted, the big Lexus turned into a comfortable, competent cruiser. Its motorway performance is super-impressive, purring along the M4 and it's ridiculously poor surface like it was born to it. Which it sort of was.
The hybrid drivetrain allied to the CVT is mostly whisper quiet. It's not the most responsive combination, the initial step-off of the electric motor's torque soon giving way to the rubber band effect of the transmission.
It doesn't feel as swift as the claimed 7.7 seconds and it would be nice if the drive select dial made a genuine difference to the throttle and transmission's response.
In the city, it's a proper wafter, moving about the broken down city streets of Sydney without fuss and a plush ride that's a bit of a surprise given the huge wheels and substantial weight of RX.
It's all very easy and pleasant but the wild looks do not match the experience. Which is not a criticism, just an observation.
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.
The RX ships with eight airbags (including knee airbags for both front seats), ABS, stability and traction controls, blind spot sensor, reversing camera, forward collision warning, forward AEB and reverse cross traffic alert.
There are three top tether restraints and two ISOFIX points.
The RX scored a maximum five ANCAP stars in January 2016.
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.
Lexus offers a fence-sitting four year/100,000km warranty with roadside assist thrown into the bargain for the same period.
Service intervals arrive at 12 month/15,000km and there is, sadly, no capped-price servicing.
Lexus will, however, promise you a car for the day or come and get your car from you and drop it back when the service is done. And it will be washed and vacuumed. The website makes a big deal about that.