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…
The Mercedes-Benz Sprinter range of vans and cab-chassis models competes for buyers in the Light Duty (3501-8000kg GVM) segment of Australia’s highly competitive Heavy Commercial vehicle market.
In 2024 the German manufacturer expanded its diverse turbo-diesel van range by launching a full-electric variant called the eSprinter, which for the first time offered local buyers the opportunity to drive with zero tailpipe emissions.
We recently spent a working week with this unique offering to assess how competently it could fulfil the diverse job requirements of private tradie buyers and fleet operators.
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.
With the convenience of back-to-base charging the eSprinter would be well suited to last-mile logistics or other urban delivery roles, as its driving range is ample for many of these urban tasks with the added benefit of zero tailpipe emissions. However, at more than $100K it is a big spend (like its full-electric rivals) so only a thorough cost-benefit analysis can decide if it’s the right choice for your business.
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.
This is a substantial vehicle riding on a 3665mm wheelbase and spanning almost 6.0 metres in length (5932mm) and more than 2.0 metres in width (2020mm without mirrors), yet it has a tight kerb-to-kerb turning circle of only 12.4 metres.
And with the optional High Roof as fitted to our example it stands almost 3.0 metres tall (2867mm), so drivers need to be conscious of this extra dimension when accessing underground loading zones, driving under height-restricted bridges etc.
Its rear-wheel drive unitary chassis features simple and rugged McPherson strut front suspension paired with a De Dion-style rigid beam/leaf spring rear axle, along with four-wheel disc brakes and electrically assisted power steering.
There’s prominent use of unpainted dark grey plastic in external areas where bumps, scrapes and wear are usually inflicted, including the grille, front bumper, hubcaps, doorhandles, door mirror shells, side bump-strips and rear bumper.
The cabin design is spacious, neat and functional, with unique instrumentation which replaces the traditional tachometer with a gauge that monitors driving efficiency. There’s also a digital info screen that displays average energy consumption, battery charge, estimated driving range, gear selection and more.
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.
With its hefty 2727kg kerb weight (largely due to the battery) and 4250kg GVM, the eSprinter has a sizeable 1523kg payload rating. It’s also rated to tow up to 2000kg of braked trailer but with its 5000kg GCM (or how much it can carry and tow at the same time) that big payload must shrink to only 273kg to legally tow its maximum trailer weight.
That’s only enough payload capacity to cater for the weight of a two-man crew and little more so it’s important to be aware of these numbers if you’re planning to tow this heavy (although we suspect few if any owners would do so).
The cargo bay with the High Roof option is enormous, with 2009mm from floor to roof allowing even tall people to stand without stooping. Its load volume is a cavernous 10.5 cubic metres.
The load floor, which is protected by a hard non-slip surface, is 3375mm long and 1732mm wide with 1350mm between the rear-wheel housings. This allow up to two Aussie pallets or up to four Euro pallets to be carried, secured using a choice of 10 load anchorage points which fold flush with the floor when not in use.
Cargo bay access is through a sliding kerbside door with a big 1260mm-wide opening and a pair of rear barn doors which can open to a full 270 degrees on each side to optimise access to forklifts and loading docks.
The walls and sliding door are neatly lined to roof height and large handles inside both door openings assist access. There’s also bright LED lighting plus handy storage pockets in each rear door.
Its spacious cabin provides a comfortable and efficient workspace. The fabric-trimmed bucket seats offer generous head and legroom for driver and passenger and the ample open floor space between them features a sturdy cradle in which to carry the charging cable (see image).
There’s also ample storage including a large bottle-holder and multiple bins in each door plus a full-width overhead shelf with a key-lockable security box and a central glasses holder.
The top of the dash has two cupholders on each side (so, four in total) plus a large compartment with clamshell lid in the centre equipped with a 12V socket and three USB-C ports. There’s another shelf in the lower dash on the passenger side, a quartet of cupholders in the centre console and yet another compartment hidden beneath the passenger seat.
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 local eSprinter range, which does not include a cab-chassis variant, offers a choice of van-based models comprising the MWB (Medium Wheelbase) with 81kWh motor for a list price of $104,313 and LWB (Long Wheelbase) with 113kWh motor for $121,041. This six-figure pricing is in the same ballpark as full-electric large van equivalents from Ford (E-Transit) and LDV (eDeliver 9).
Our test vehicle, finished in standard 'Arctic White', is the smaller MWB/81kWh model equipped with the optional High Roof (option code DO3) which adds almost half a metre (489mm) to its external height and $2392 (ex GST) to its price.
Its work-focused standard equipment includes 16-inch steel wheels with 225/75 R16 tyres and a full-size spare, DRLs and side marker lights, sealed cabin bulkhead with central window, electric-adjustable truck-style exterior mirrors, heated driver’s seat and exterior mirror, prestige leather-rimmed steering wheel with multiple remote control functions, colour 5.5-inch driver’s information display, reversing camera, front/rear parking sensors and tyre pressure monitoring to name a few.
The cabin also has an electronic parking brake, electric air-conditioning and heating plus multiple USB ports and 12V sockets. The latest 'MBUX' multimedia system features a large 10.25-inch touchscreen as central command offering voice activation, digital radio, wireless Apple/Android connectivity and more.
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 eSprinter is powered by a single electric motor producing 150kW of power and 400Nm of torque. It’s mounted under the rear floor where it drives the rear wheels through a single-speed transmission.
This compact motor-trans unit shares underfloor space with an 81kWh lithium-ion battery that provides the motor’s energy. This battery occupies most of the underfloor between the front and rear axles and features a slimline design to optimise ground clearance.
Drivers have a choice of three drive modes comprising 'Comfort', 'Economic' and 'Max Range', plus different levels of energy recuperation using steering wheel-mounted paddles that adjust the intensity of regenerative braking.
The electric motor also features a ‘boost’ function which temporarily increases power output when fast acceleration or overtaking is required. The eSprinter’s maximum speed is capped at 120km/h.
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.
Mercedes-Benz’s official driving range for the 81kWh eSprinter, based on combined WLTP testing, is up to 264km. When we collected the vehicle for our test, the battery was fully charged but the estimated driving range displayed was only 234km, or 30km less than the official figure.
The eSprinter’s towering height also stopped us accessing local charging infrastructure (located inside multi-storey car parks) so our test was conducted using the initial single charge. This included a mix of suburban and city driving best suited to electric van use and covered a total distance of 190km.
At the completion of our test, the dash display claimed average energy consumption of 29kWh/100km, with 25 per cent battery charge remaining and 63km of estimated range. So, based on these figures, the official WLTP range of up to 264km is credible.
The eSprinter comes standard with a Mode 3/Type 2 charging cable and the charging port is in the centre of the grille behind a spring-loaded flap displaying a three-pointed star badge.
Mercedes-Benz claims 11kW AC charging of the 81kWh battery from 10-80 per cent takes around eight hours while 115kW DC fast charging reduces that to around 32 minutes.
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.
There are large handles on the front door window frame and overhead shelf to assist climbing aboard, where you’ll find a comfortable and commanding driving position.
This is thanks to supportive seating (albeit with no lumbar adjustment), ample steering wheel height/reach positioning and a spacious footwell, combined with a clear rear view through the bulkhead window and along the sides thanks to large truck-style mirrors.
The leather-rimmed steering wheel feels nice in your hands, all major controls are easy to see and operate and the electric air-conditioning and heating systems are effective.
It’s a pleasant vehicle to drive as the most noise you hear is the tyres, given the near silence of the rear-mounted motor and drivetrain. The underfloor location of the battery also creates a low centre of gravity, which optimises handling with minimal body lean when cornering.
Unladen ride quality is excellent, enhanced by the weight of the battery which helps the suspension iron out bumps. And the electric motor’s 400Nm of torque provides energetic performance, with acceleration delivered in a smooth liquid-like surge.
Selecting the strongest regenerative braking not only optimises energy harvesting for the battery but also creates enough retardation to ensure mostly single-pedal driving (accelerator only) as the brake pedal is rarely required. This mode is also handy on steep descents.
To test its payload rating we forklifted 975kg into the cargo bay, which combined with our two-man crew equalled a total payload of 1155kg that was still comfortably below its legal limit.
The rear leaf springs compressed less than 30mm under this loading, leaving ample bump-stop clearance to ensure no bottoming out on our test route. The e-motor’s response was more subdued as you’d expect but it still hauled this payload with apparent ease.
Overall, the driving experience was hard to fault, apart from the vertical pillar between the fixed and sliding glass in the driver’s door blocking the outer third of the exterior mirror’s view, at least with the driver’s seat positioned far enough rearwards to suit my 186cm frame.
We also noted, when travelling at highway speeds on a windy day, that our test vehicle was prone to being moved within its lane by strong crosswinds, even though ‘Crosswind Assist’ is included in the active safety menu.
We suspect the High Roof option was responsible for this given the larger bodysides it creates and is something to be mindful of when driving in high wind conditions.
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.
There’s no ANCAP star rating for commercial vans above 3.5-tonne GVM but the eSprinter did score the maximum Platinum grade in ANCAP’s Commercial Van Safety Comparison in 2024.
It comes standard with six airbags, active distance assist (can automatically brake and accelerate in traffic), lane-keeping, multiple blind-spot monitoring, rear cross-traffic alert, tyre pressure monitoring, reversing camera, front/rear parking sensors, crosswind assist and many more.
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.
Then eSprinter comes standard with a five-year/250,000km warranty including 24/7 roadside assist for the same duration. There’s also a separate eight years/160,000km warranty covering the lithium-ion battery.
Scheduled servicing is every 12 months/40,000km whichever occurs first. Capped pricing applies to the first five scheduled services totalling $1920, or an average of $384 per service. Pre-paid service packages offer additional savings.