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…
An American all-electric car brand with a unique take on the automotive industry, an up and down share price and a cheaper model in its future plans. You could be mistaken for thinking I’m talking about Tesla, but I’m not.
Recently CarsGuide got the opportunity to experience an alternative electric car brand, and one that, despite having many similarities to Tesla, is also in many respects its polar opposite.
I’m talking about Rivian, which is very much behind Tesla in terms of sales, market cap and just about every other measure. But what it does have is a compelling line-up of electric vehicles, with plans for expansion, including an eventual entry into Australia.
Back in 2023 we drove the brand’s ute, the R1T, but on a recent trip to Los Angeles we sampled the brand’s other model, the R1S SUV. It was an eye-opener to see how far the brand has come in two years and showcased just how different Rivian is from Tesla.
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.
While there are some obvious signs that the R1S is Rivian’s first mass-market vehicle, the good news for the company is that its problems are not impossible to overcome. The suspension needs retuning to improve the ride quality and the multimedia system’s software needs upgrading. But even with those issues the R1S left a positive impression.
This is a very stylish SUV with great space and excellent performance, that also happens to be electric, rather than relying on being electric as its primary selling point.
Rivian has put more effort into the design and finishes than many of its EV rivals and the result is a vehicle that can genuinely compete with the established premium players with more credibility.
The only catch is there’s no clear timeframe for when, or even if, this generation of R1S will make it to Australia. The brand has repeatedly spoken of its hopes of entering the market here without locking anything in, but given the current state of the EV sales it may pay off to wait until the conditions are right for a new, premium player to try its luck here.
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.
Design is another area where Rivian has carved out a unique position for itself. Whereas other brands, including Tesla, have focused on simplicity and aerodynamic efficiency, Rivian has given the R1T a unique style that looks interesting, different and most definitely not plain.
The oval daytime running lights make every R1S and R1T stand out from a mile away, even on LA’s busy freeways. The overall design is high quality and manages to strike a good balance between aesthetics, aerodynamics and practicality - even if it doesn’t suit everyone’s personal taste.
The cabin is worth highlighting in particular, because rather than go for the ‘minimalist’ look that so many brands are going for these days, with as little switchgear and different trims as possible to keep costs down, Rivian has opted for something more complex and, frankly, more impressive.
There’s a level of craftsmanship, a great mixture of premium materials (including some striking light wood options) that make the R1S feel like a stylish and relaxed environment inside the cabin. Our particular example had a great mixture of colours, textures and patterns that really elevated the cabin experience.
The technology is also nicely integrated into the design, rather than being the focal point, like so many other modern electric vehicles. It still offers the same level of technology - a pair of screens - but doesn’t rely on them to carry the design of the interior.
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 R1S comes standard as a seven-seat SUV, split across three rows (two in the first row, three in the second row and two in the third row). Space across the three rows is fairly typical for an SUV of this size, which is to say generous up front, good in the second row and a little bit tight in the back.
What is good though, is the length of the cabin allows for quite a spacious boot even with the third row in use, which is definitely not something all seven-seat SUVs can claim. Using a direct conversion from Rivian’s specifications that list cargo capacity in cubic feet, the R1S has a claimed 498 litres with the third row in use and up to 1331L with the third row folded down. There’s also 314L under the bonnet and another 144L underneath the boot floor (although that comes at the expense of a spare tyre).
As mentioned in design, Rivian has nicely integrated the technology into the cabin, with the 12.3-inch digital driver display and 15.6-inch central multimedia touchscreen feeling like a natural part of the car rather than a centrepiece. Rivian has also managed to incorporate eight USB-C charging ports spread around the cabin to keep everyone’s devices charged up.
However, while the technology is nice from an aesthetic design perspective, the same cannot be said about its useability. Like Tesla, Rivian has opted to go it alone with its multimedia system and has developed its own Google-based software that is not compatible with either Android Auto or Apple CarPlay. That would be acceptable, although still disappointing, if the system worked as well as Tesla’s, however the Rivian system is very slow. It repeatedly took several seconds to load between the various functions, which may not sound like long, but when you’re trying to get back to the navigation so you don’t miss your freeway exit a few seconds can make a big difference.
But, honestly, in this day-and-age, systems like this should work quickly and seamlessly, so it’s an area Rivian needs to improve.
On a positive note, Rivian does have some cool accessories for the R1S including what it calls a ‘Camp Speaker’ which is a US$400 option that it integrates into the sound system but is also removable, so you can pull it out of the centre console and listen to your music if you’re around the campfire or having a picnic.
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.
When we drove the R1T in 2023 Rivian was still in the ramp up stage of production and was limited with what it could offer customers. Fast forward to 2025 and the brand now has both the R1T and R1S available with dual or tri motor powertrains, with a quad-motor powertrain expected by the end of the year.
The R1S Dual Standard begins the range at US$75,900 (approx. A$118,000), the R1S Dual steps it up to US$83,900 (A$130k) and the R1S Tri-motor completes the current line-up at US$105,900 (A$165k). While those prices are definitely in the premium end of the market the R1S is actually cheaper than the Tesla Model X, which is still on sale in the US market, and starts at US$86,630 (A$135k) and stretches to US$101,630 (A$158k).
For more context, the Audi Q8 e-tron starts at US$74,800, the BMW iX from US$87,250 and the Mercedes-Benz EQE from US$77,900.
Standard equipment across the range includes the 12.3-inch digital instrument display, 15.6-inch multimedia touchscreen, dual-zone climate control, heated and ventilated front seats, heated steering wheel, eight-way power adjustable driver and passenger seat and panoramic glass roof, so it certainly has premium levels of equipment.
We drove the range-topping RS1 Tri-motor which, aside from an extra motor, gets standard 22-inch alloy wheels, a dynamic glass roof, a soft-touch suede textile headliner as well as unique colour and trim options.
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.
As mentioned earlier, there are currently three versions of the R1S available, each with a different powertrain.
The Dual Standard AWD has, unsurprisingly, dual motors (one at the front and one at the rear) which make a combined 397kW/827Nm. That’s enough for it to launch 0-60mph (0-96km/h) in just 4.5 seconds. The R1S Dual AWD has the same power, torque and acceleration figures, however it gets Rivian’s Large battery, which we’ll detail below.
The Tri-Motor AWD obviously has three motors, one on the front axle and two on the rear, which naturally provide more power, 633kW/1495Nm. With so much power and torque the Tri-motor is wickedly fast, taking just 2.9 seconds to launch 0-60mph.
If, for some reason, the Tri-Motor isn’t fast enough for you, Rivian has released the details on the Quad-Motor. It will have two motors on each axle providing a staggering 764kW (that’s 1025-horsepower!) and 1624Nm, enough to rocket it from 0-60mph in just 2.6 seconds and across the quarter mile in 10.5 seconds.
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.
Rivian offers three different battery types across the three variants, each with a different driving range. The R1S with the Standard battery (92.5kWh) has a claimed 434km driving range, the R1S Dual with Large battery (109.4kWh) extends that to 530km, while the Tri-Motor comes standard with the Max battery (141.5kWh) that has an impressive 597km of range.
It is worth noting, though, that those range claims are based on US EPA estimates, rather than either the WLTP or NEDC methods usually used.
Charging times vary depending on the type of charger used, in the US Tesla has given access to its network to other EV brands and the Rivian is available with a plug adaptor to use a Tesla charger. The R1S is capable of charging up to 220kW, which means it takes approximately 40 minutes to take the battery from 10 to 80 per cent.
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 R1S and R1T are Rivian’s first mass-produced cars, and it shows. It’s not all bad news by any stretch, but there are some major issues the brand will need to address in the future if it wants to succeed globally (or even just in the US).
The biggest issue is the ride, which just doesn’t feel as well resolved as the more established brands that have been designing, developing and building cars for decades. The R1S isn’t bad to drive by any stretch, but the ride is too firm at times and it also lacks control and feels too soft at others.
All R1S grades come standard with Air Suspension that has multiple levels of firmness and can adjust the ride height. However, in the ‘normal’ setting the ride feels too busy, with the heavy (3096kg) SUV skittering over the imperfections in the road rather than absorbing them. The problem is, if you adjust the suspension to the softer setting it lacks control and has a tendency to bounce over bigger bumps and take a few seconds to settle. This was particularly noticeable on LA’s concrete freeways, but it would be an issue on any road with undulations or joints.
But while the ride needs improvement, the R1S has strengths in other areas - namely performance. The Tri-motor AWD we sampled had immense punch from its three motors and it certainly felt like 633kW and 1495Nm was on tap. We didn’t test its acceleration claim officially, but any take-off could be made into a rapid one with just a squeeze of the accelerator pedal.
The R1S is also capable of towing up to 3500kg, so it’s a strong and capable SUV too, rather than just a speedy EV.
Another strength is the regenerative braking system. There are multiple settings but we found the lowest regen was the best option, as it still provides powerful regen but is more progressive than the more powerful modes.
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 R1S comes loaded with safety equipment across the range, including eight airbags, adaptive cruise control, autonomous emergency braking, blind spot monitoring, forward collision warning, lane departure warning, lane keeping assist and rear cross-traffic alert.
It also comes with what’s called the ‘Rivian Autonomy Platform’ that includes 11 cameras and 12 ultrasonic sensors for mild-autonomous functionality in specific circumstances, such as freeway driving or on well-marked roads.
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.
Rivian offers a four-year/80,000km warranty for the R1S vehicle as a whole, as well as a separate battery pack and drivetrain specifically. The Standard battery is covered for eight years/190,000km while the Large and Max batteries are covered for eight years/240,000km.
As for servicing, Rivian uses an app-based system, which allows owners to schedule a service at any time via the app and then either have a Rivian technician come to your home for a small service or drop it off at a service centre if it’s a bigger job. The app is also connected to the car, so if the car’s own diagnostic system recognises a problem, it can prompt you to book a service proactively.