Lexus GX vs Hyundai Palisade

What's the difference?

The new Lexus GX 550 Sports Luxury looks fantastic and has enough mod cons to satisfy a family but it’s not as luxurious as you’d expect from a premium brand and the fuel economy and driving range will turn off some. But if you’re still interested, there’s a lot here that will make you happy and it’s one of the smoothest 4WDs I’ve driven.

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 new GX 550 looks massive and while it shares the same platform as the Toyota LandCruiser 300 series, it doesn't share all of its bulk. They both stand at 1980mm wide but differ on length (5015mm vs 4980mm) and height (1670mm vs 1950mm), respectively.

The new design is fabulously rugged but each body panel looks meticulously crafted and is just the right size. This just means the proportions look right and your eye sort of glides over the big body rather than stopping on any one feature.

But having said that, there are a lot of nice features to focus on, like the long LED headlights and rear strip light, auto-folding side steps, 22-inch alloy wheels and sharply styled rectangular side mirrors.

The tailgate window can also be opened if you need to pop something into the boot but don't want, or have the space, to open the tailgate itself.

The styling takes a minor nose dive once you hit the cabin, though, because it doesn't look as sumptuous as you'd expect in a premium SUV.

I love the utilitarian and military vibe of the vertical dashboard, chunky air vents and relatively small windscreen. It looks great but some trims are plasticky and the touchpoints, while soft, are not Lexus-plush.

However, the technology looks gorgeous with an integrated 14-inch multimedia display and a 12.3-inch digital instrument cluster. The fixed sunroof with its two settings (clear or opaque) is also a lovely feature.

But on a whole, the GX 550's European rivals outclass it with their flashier cabins.

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.

The cabin of the new GX 550 is fairly practical with plenty of head- and legroom in each row (yep, even the third!). When you first hop in, it can feel a big snug on elbow-room but this feeling quickly dissipates.

Despite a 215mm ground clearance, access is pretty good for the front and middle rows due to the wide door apertures and side-steps. Third row access is a bit awkward for an adult but my eight-year old loved scampering back there this week.

The electric front seats are comfortable with their extra functions and I like the way the massage feature extends to the seat cushion as it limits fatigue on longer journeys. However, you sit on top of them rather sink into them which makes it feel a little trucky at times.

The wide middle row has a bench seat that will be comfortable for kids but an adult might get a sore behind on a long trip. The transmission tunnel also compromises foot room for adults but the seat is wide enough to make use of all three top-tether anchor points (there are ISOFIX mounts too).

It was a little bit of an effort to lift my big booster seat into the back because the GX 550 sits so tall but otherwise, there's plenty of room around a child seat for them not to feel like a sardine.

Individual storage is made up of a glove box that fits an owner's manual, a small shelf in the dashboard and a middle console that doubles as a cool box (mini fridge) and can fit up to four cans or bottles in it.

Each row gets four drinkholders and two USB-C ports but the front also enjoys a 12-volt socket and wireless charging pad. There's a 220V domestic plug port in the boot for larger appliances, too.

It's sometimes awkward to use the wireless charging pad because it's easy for your phone to slide around on it and it quite often disengaged from charging.

My son enjoyed all of the other amenities in the middle row, like the reading lights, climate control, two USB-C ports and retractable sunblinds and I applaud carmakers when they position rear directional air vents in the pillars and/or roof. It just makes it so much easier to cool down sweaty kids!

The 14-inch multimedia display has clear graphics and a responsive touchscreen. The layout is easy enough to get used to after spending some time with it and the sat nav is simple to use.

I like that the sat nav directions can be pulled into the 12.3-inch digital instrument cluster and head-up display.

There is a Lexus connected services app, which you get a three-year subscription to. It's easy to connect to the wireless Apple CarPlay and there is also wireless Android Auto.

The system also has Bluetooth and digital radio, which is a delight to use through the 21-speaker Mark Levinson sound system.

The cabin is rounded out by the well-shaped boot which has a massive 1063L of capacity when the third-row is folded. That's been more than enough for my family's needs this week and my German Shepherd was pretty comfy back there, too. The powered tailgate has a kick-function and there is a full-size spare wheel underneath the car.

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.

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.

All GX 550 grades share the same 3.5L V6 twin turbo-petrol engine which produces up to 260kW of power and 650Nm of torque.

This 4WD has high- and low-gearing, as well as a bunch of driving modes to suit most occasions, like 'Eco', 'Comfort', 'Sport' and 'Sport+'.

The 10-speed automatic transmission shifts through its gears smoothly and it always feels like it's engaged in the right gear. Which isn't always the case for a big SUV!

The Sports Luxury is fitted with a towing hitch and cover but unlike the base Sports grade which has a 3.5-tonne braked towing capacity, this model only has a 3130kg capacity which might not appeal to families with big toys to tow. 

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.

I didn’t have high hopes for fuel economy because the official combined (urban/extra-urban cycle figure is a hefty 12.3L/100km but after mostly open-road driving, with some urban stuff mixed in, my real-world average came in at 11.8L.100km! This figure is based on my actual km travelled (358km) and litres of fuel used (42.41L).

While I’m surprised by the fuel usage result, I wouldn’t say this car has good fuel economy compared to its diesel-powered counterparts but it’s not terrible!

The GX 550 has a relatively small fuel tank compared to its Toyota cousins at 80L and based on the combined fuel cycle, you’ll get a theoretical driving range of up to 650km.

Not all that great. Not for a big family mover and not if you’re typically driving in the city, where fuel usage will be a lot higher.

The GX 550 only accepts premium unleaded petrol (95 RON), too.

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.

Oh my goodness the Sports Luxury is a masterclass on 4WD refinement! You never feel the bulk or weight of this massive SUV when you’re driving it. The power delivery is effortless and there’s lots of grunt available when you hit hills.

The handling is also very good with responsive steering and enough road feedback as a driver to make you feel comfortable with what the car is doing. There is some roll in corners but it can tackle more corners at speed than I thought it would. 

The high driving position makes me feel like I can see a long way ahead yet while visibility is mostly good, it can be compromised when you have the side window shades and the third row headrests up. Which is why I love the digital rear view mirror.

Overall, ride comfort is good with forgiving suspension and low cabin noise, even at higher speeds. It’s pretty easy to chat with all rows and there’s not a lot of engine noise which adds to the refinement. I do like hearing a V6 rumble but that’s just a personal preference. 

I was a little worried about hitting my local Westfield car park but this is a nimble SUV to manoeuvre and parking it is a breeze with the 360-degree camera system and parking sensors. 

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.

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.

Lexus offers the GX 550 with a five-year/unlimited km warranty, which is fairly standard compared to its Euro rivals.

You get five years capped-priced servicing which costs $5950 but the servicing schedule is a bit of a bear at every six months or 10,000km, whichever occurs first.

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.