Hyundai Palisade vs Volkswagen Tiguan

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.

The new Tiguan is as confident as ever in its identity, even in such a crowded mid-size SUV space where there are so many models worthy of your attention.

No matter which version you choose, this is still the mid-size SUV for a driving enthusiast who doesn’t quite have premium dollars to spend.

While it may not quite expand its appeal as much as the brand hopes precluding a hybrid variant, those who are choosing this as their family hauler for the right reasons won’t be disappointed.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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.

The new Tiguan is a bit of a mind-bender. Its new design seems to make it feel smaller than the outgoing vehicle, despite it being both slightly wider and longer.

This, I have decided, is because the design creates a visual effect, where the upper curvier parts seem to shrink it down, and the additional length makes it seem narrower than the more boxy visage of the previous model. Also, it’s 20mm shorter than the previous design, which we’re told combines with the new bodywork to make for a 15 per cent drag reduction.

Either way, it’s nice not to see a mid-size SUV not continually engage in an arms race to get bigger and bigger. Volkswagen will also introduce the dedicated seven-seat Tayron later in 2025. It’s a half-size up and replaces the outgoing Tiguan Allspace, and this time it features a much more distinct design from its Tiguan sibling.

The third-generation Tiguan not only embraces a more curvy design aesthetic than its predecessor, but it also features many more contemporary design elements. The headlights and curvy accents over the wheelarches feel like they more closely associate this SUV with the new ID.4 and ID.5 EVs, while the light bar across the front on some grades combines with the new light bar across the rear to give it a trendy silhouette. It tops things off with the ‘Tiguan’ letterwork on the tailgate, and, as usual, a sporty spoiler fitting giving the rear hatch a bit of depth.

As usual, VW’s array of gloss-black, chrome or plastic garnishes on the outside, depending on grade, offer a subtle and tasteful finish to the exterior appearance.

The inside is revolution rather than evolution, now heavily screen-centri, and featuring an array of lighting features like many of its rivals.

The screens look the part and have fast and mostly straightforward-to-navigate software, while the seat designs are a real highlight, being both aesthetically pleasing and nice to the touch in all grades.

The ambient lighting features add a sense of presence to the cabin, and unlike the outgoing car, the new one feels a bit more driver-centric thanks to the design of the dash and screens effectively pointing their way down the road from the driver’s point of view.

It does away with the sparse feeling of the previous car, elevating things a notch with an increase of nice materials throughout.

While some may find the abundance of gloss-black finishes a bit harder to maintain, it’s hard not to feel like this new Tiguan is a major generational jump from the previous one. Mission accomplished, VW.

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 the previous model, VW hasn’t forgotten its pragmatic touches for the interior, despite its increase in complexity and appointments.

Finding a driving position was easy for me at 182cm tall, with both a healthy adjustment range for the seats and steering wheel. The digital instrument cluster remains one of the best on the market in terms of usability and customisation, while the multi-function steering wheel commits to buttons rather than the widely-disliked haptic feedback panels, which have appeared on various other VW models.

Unfortunately, this doesn’t entirely extend to switchgear for key functions, with the climate control exclusively controlled via touch sliders, a touchscreen menu or the Tiguan’s new voice control suite, none of which are as intuitive as just having a physical dial for temperature and fan speed and buttons for recirculate, auto and on-off.

However, the Tiguan does have a central dial on the console, which can cycle through volume control, drive modes or ambient lighting modes when pressed. A welcome addition.

Moving the shift stalk to the steering column, like the ID.4 and ID.5, has also allowed additional space for the centre console area, which is now quite versatile. It includes a variable-height armrest console box with either dividers or a dual-bottle-holder fitting, which can be interchanged between the two areas, while the dual-charging bays up front have a rubberised cover, which can be pulled down as to not waste the storage space. This has the additional feature of making the cooling system for the wireless charging phones more effective.

There are two large bottle holders and pockets in each door, which have a carpeted finish to reduce vibration, and there’s also a passenger glovebox.

The rear seat offers a healthy amount of space behind my own driving position. I had leagues of knee room and a healthy amount of airspace above me, however the presence of a tall raise for the transmission tunnel eats into the amount of room a centre passenger would have for their feet.

The comfortable seats continue and are on rails if you need to increase the amount of room in the boot, or simply want a more aggressive recline. When it comes to storage, there are bottle holders in each door, a drop-down armrest with dual bottle holders, dual USB-C outlets on the back of the console, as well as dual air vents with a touch control panel for the independent third climate zone. The only thing it seems to be missing is built-in window shades, which are offered on some Skodas and the now-discontinued Passat (RIP).

The boot helpfully features a powered tailgate on all grades, and measures in at 652 litres with the second row up, or 1650L with the seats down. Numbers can be deceptive, but it does seem large for the class, and there’s a space-saver spare wheel under the floor.

Volkswagen is attempting to broaden the appeal of the Tiguan this time around. As such, it hasn’t jacked prices up massively like some recent new-generation versions of rivals, despite a comprehensive cabin tech overhaul and big lift in standard equipment.

As a result, the range is vast, with six variants covering a wide price spectrum and, as the brand says (or hopes), a wide range of potential buyers.

Kicking it off is the base model 110TSI Life, which, at $44,990 plus-road costs, is only $1000 more than the outgoing version. It sports a carryover 1.4-litre turbocharged four-cylinder engine, although it has a new version of VW’s seven-speed wet dual-clutch automatic sending power to the front wheels, replacing the derided dry dual-clutch that marred the base version of the old car.

Standard equipment on the base car is high, including 19-inch alloys, a full array of LED lights both for the headlight clusters and rears, it also includes a 12.9-inch multimedia touchscreen with wireless Apple CarPlay and Android Auto, a 10.25-inch digital instrument cluster with the brand’s signature digital cockpit software, tri-zone climate control, ‘comfort’ cloth seats (said to be benchmarked against the best in-class) with manual adjustments, a leather-trimmed multifunction steering wheel, dual wireless phone chargers, ambient dashboard lighting and even an electric tailgate.

The mid-spec Elegance grade can be chosen with either the 110TSI engine in front-wheel drive, or the new 150TSI 2.0-litre engine in all-wheel drive, priced at $50,690 and $60,690 respectively. It increases the equipment to include chrome styling on the exterior with alternate 19-inch wheel designs, rear privacy glass, improved LED headlights with a lit-up centre strip and dynamic cornering functions, leather interior trim, power adjustments with heating, ventilation, and message functions for the front two seats, and a heated steering wheel.

Alternatively, there is the 150TSI R-Line which starts at $55,690, representing a $4600 price reduction compared to the outgoing 162TSI R-Line. It is also all-wheel drive only and features an R-Line styling pack inside and outside, with sporty but manually adjusted cloth bucket seats featuring integrated headrests up front (which miss out on the heating and ventilation of the Elegance grade), black headlining, an R-line steering wheel with additional contouring, 19-inch alloys in a sportier design, a wider wheel and tyre package for enhanced grip, and the VW’s signature progressive steering tune.

Both 150TSI cars also add adaptive chassis control and hill descent control as standard, with an additional off-road and snow driving mode, while the Elegance specifically scores a larger 15-inch multimedia screen.

Finally, topping out the range is the new 195TSI R-Line priced at a massive $70,490. Not only does this grade score its own 195TSI engine sourced from the Golf GTI, but it also adds everything available in the range, swapping out the 150TSI R-Line’s cloth seats for the leather-trimmed, heated, cooled and massaging ones otherwise only available on the Elegance, along with the larger 15-inch screen, sporty steering wheel and R-Line appearance package inside and out, along with its own set of 20-inch alloy wheels.

Option packs include a black styling pack for the R-Line at $1500, a panoramic sunroof available on the Elegance and R-Line grades at $2100, and the Sound and Vision package, which adds premium audio and the larger 15-inch multimedia screen to the 110TSI variants for $2700.

This makes the Tiguan range span from surprisingly good value at the low end, to a real enthusiast-only proposition at the pinnacle, with VW even pitching the 195TSI R-Line at the lower-end BMW X3 and Mercedes-Benz GLC buyers.

In reality many of its mainstream rivals should include options like the dominant Toyota RAV4 ($42,260 - $58,360), Subaru Forester ($38,690 - $50,140), Nissan X-Trail ($38,025 - $59,265), Hyundai Tucson ($39,100 - $61,100) and Kia Sportage ($32,995 - $55,420).

The surprise, some will note, is all of the Tiguan’s rivals have at least one hybrid variant, where VW has chosen to stick with combustion only for the time being for its new-generation mid-sizer.

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.

There are three engine options in the Tiguan range, and it is notable none are even mild hybrids (MHEVs) in 2025.

The base engine present in 110TSI variants is even a carryover 1.4-litre four-cylinder turbocharged petrol engine, providing 110kW/250Nm to the front wheels. The big news for these base cars is the dry-clutch DCT has been swapped out for the better-performing wet-clutch version, which also has various improvements made to it for this iteration. Notably, VW has stripped-out the stop-start system with this engine and transmission combination. 

The brand says it opted not to use the more recent 1.5-litre MHEV version of this engine as it simply didn’t need it to meet Australia’s new emissions standards and it would have added a prohibitive amount to the cost of entry-level variants to justify its inclusion in the range.

Next up is the new 150TSI engine. It is a 2.0-litre turbocharged four-cylinder unit, which replaces both the 132TSI and 162TSI engines from the previous-generation model. It provides 150kW/320Nm and drives all four wheels via the same seven-speed dual-clutch automatic. This engine also reintroduces stop-start.

At the top of the range, solely available on the R-Line, is the 195TSI engine. VW says this offers buyers of the previous Tiguan R somewhere to go, but also an option for those who wanted more than the previous 162TSI R-Line offered. The 2.0-litre four-cylinder turbocharged 195TSI engine is sourced from the Golf GTI and produces 195kW/400Nm, driving all four wheels via the same seven-speed dual-clutch. It reduces the 0-100km/h sprint time from 7.1 seconds to 5.9 seconds.

It is a shame in the current environment VW hasn’t chosen to make a splash with the 1.5-litre plug-in hybrid (PHEV) variant, which is available overseas. This Tiguan features a 25kWh battery paired to the 110kW engine to make for an estimated 100km electric-only driving range. It even features both 11kW AC charging and 50kW DC charging for convenient top-ups.

If you want it, tell your dealer. VW tells us they’re working on a business case for the PHEV in the background, but if you want electric driving for now, it’s pointing current customers to the ID.4 (from $59,990 before on-roads).

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!

Efficiency is remarkably even across the Tiguan range, with the new engines and updated transmission helping to make things reasonably straightforward.

The base 110TSI versions have an official/combined fuel consumption of 7.6L/100km, as do the 150TSI versions thar benefit from the stop/start system but have the added heft of all-wheel drive.

The top-of-the-range 195TSI R-Line, meanwhile, is said to consume 8.5L/100km. All versions require 95RON mid-shelf unleaded. And for those who care, the 110TSI and 150TSI produce 173g/km of CO2, while the 195TSI produces 194g/km.

Interestingly, the 110TSI variants have a 55-litre fuel tank, while the 150TSI and 195TSI have a 58-litre fuel tank.

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.

The Tiguan range has some significant upgrades from behind the wheel this time around, but there are a handful of areas where I was surprised to find it didn’t quite live up to expectations.

Firstly, the seating position and driver-centric cabin design make the Tiguan feel like more of a driver’s car than ever before. The bucket-style seats and the high beltline combine to make the seating position feel like more of a hatchback than an SUV. Yet visibility out of the cabin is healthy thanks to large windows and mirrors.

As you set off, the Tiguan feels smoother through its drivetrain than its predecessor, thanks to the new dual-clutch automatic being sandpapered when it comes to its initial engagement and shift-mapping. Even the base 110TSI, which can sometimes struggle for initial torque thanks to a dollop of turbo-lag, has a decent roll-on, and with no stop-start system this time, it’s much more friendly when hopping on the accelerator from a standstill.

The steering tune is great in all grades, helping to make this new Tiguan feel light and reactive, despite its slightly expanded dimensions. This lightness is a trait which shines through on this new version, making it feel much less pedestrian than almost all of its rivals.

On the base variant, this can be to its detriment at times, with the 110TSI engine occasionally overcoming the grip of the front tyres when a lot is asked of it, however all-wheel-drive versions are much more confident in their footing, not only delivering power in a more linear fashion, but also putting it to the ground more smoothly.

R-Line variants, with wider and more expensive tyres, are reactive, grippy, and simply outstanding to drive in this mid-size segment, with the 195TSI bringing a strong additional lump of torque and a throatier engine note.

Indeed, this version of the Tiguan leans into the nameplate’s best traits and solidifies its position as the driver’s option in the segment. The 150TSI R-Line in particular stood out as raucous amounts of fun for a mid-sizer for a fair price, as it could be driven significantly harder than the more powerful 195TSI.

However, this new Tiguan was also not without some disappointments. The amount of road noise in all grades was notable, and while VWs are usually known for their balanced ride quality, all Tiguan variants also featured a certain seemingly inherent firm response to sharper blemishes in the road, perhaps a cost for the otherwise superb body control.

These blemishes in driving ambiance were relatively minor in scale, but surprising to find nonetheless.

Every new Tiguan gets the full array of modern active safety kit, including freeway-speed auto emergency braking with vulnerable road-user protections and intersection features, lane-keep assist, blind-spot monitoring, both rear and front cross traffic alert, a 360-degree parking camera suite, driver attention alert, traffic sign recognition, adaptive cruise control and exit warning.

It also features an emergency assist feature, and there’s a suite of nine airbags, including a centre airbag. VW is anticipating a maximum five-star ANCAP rating, although at the time we put this review together, the SUV’s score was yet to be released.

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.

Volkswagen offers the Tiguan with its usual five-year/unlimited-kilometre warranty. While this is still the prevailing standard, the warranty wars are back with more manufacturers pushing into the seven-to-10-year category.

The Tiguan requires servicing once every 12 months or 15,000km, although pricing for the service packages was yet to be revealed at the time we put this review together.