Lexus NX250 vs Hyundai Palisade

What's the difference?

So, is the cheapest Lexus NX the grade you’d skip? Depends on where you live and drive.

If you’re urban based and bound, save up a bit more and go the petrol-electric hybrid; otherwise, out on country roads especially, the spirited and sporty NX 250 is more than up to the task.

Either way, though, the latest NX is finally fit to fight the other premium brands’ medium SUV efforts, head on and held up high. Welcome to big mid league, Lexus.

Ignore or underestimate at your own peril, everybody else.

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.

Lexus says that nearly one million of the original-shape NX versions were produced, so there’s no way that the brand was going to mess with the styling of the latest version. Which explains why picking new from old is a serious case of trainspotting.

But that migration to the TNGA GA-K platform has brought some benefits from a design point of view. The styling now breathes more, especially when viewed rear-on, thanks to a body that’s 20mm longer and wider, as well as a handy 30mm wheelbase stretch.

Drilling into the details, the headlights have an LED ‘tick’ motif, the corporate ‘spindle’ grille isn’t as in your face and the rear gains ‘LEXUS’ lettering spelled out, probably to accentuate stance.

Crisp and elegant, the design works well. This is a handsome machine. Looks expensive too.

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.

Though distinctively attractive and obviously well built, the previous NX was quite small for a medium-sized SUV inside, with tight rear legroom.

It also had a nonsense mouse-operated multimedia controller that was fiddly, annoying and counter-intuitive to use.

Thankfully, the new-from-the-ground-up design has rectified both these issues in the latest version.

Now the NX is properly medium-sized, and so easier to get in and out of, as well as palpably roomier front and rear. Employing the RAV4’s TNGA architecture results in a lower and roomier cabin, that benefits all in terms of packaging.

Being the entry-level 250, you might not expect much in terms of interior presentation or style, but Lexus Australia’s product planners have been deft in specifying this grade to make it look luxurious and on-brand.

Body-hugging bolstered perforated leather front bucket seats, in our example finished in a black/cream hue with orange stitching, belie the base-grade reality of the 250. This scheme is also found on the centre console, armrest and door cards, lifting the ambience no end. It looks, feels and smells expensive in here.

The only thing that seems to be missing is a smartphone charger. That's part of a $3K option pack that also throws in a sunroof and foot-operated actuation for the electric tailgate. Not bad.

Then there’s the driving position, with an electrically-operated reach/height adjustable steering column and a multi-configurable seat to help find the right spot. All-round vision is also better than you might expect, no doubt helped out by huge exterior mirrors and a large reversing camera screen.

Typical Lexus-style classy digital instrumentation, directly ahead, are positioned in such a way that you’re not really aware of/missing the available head-up display in higher grades. Though it takes a quick amount of familiarisation, all the info there is ultimately clear and easy to take in.

The same applies to the now touch-only centre screen, which has a slick rich finish and tactility, and also encompasses the climate-control display.

Along with banishing the dreaded mouse pad, kudos to Lexus for also installing physical switches or buttons for the most-used items – audio volume, temperature setting, and front and rear window demisting.

These and the simplified sub-screen menus for navigation, wireless telephony/audio streaming, vehicle diagnoses and vehicle settings amongst other features, is quickly second-nature in their accessibility and operation. And the sound system quality is great too.  

One of our very few complaints concerns the Apple CarPlay experience, which seems needlessly complicated to return to if you temporarily switch away from it to the NX’s native multimedia system. Confusing and distracting. 

Never mind. There are minivan levels of practicality at work here, from the superb and easily manipulated ventilation system to the seemingly endless storage options, that include bottle holder capability in the doors, a clever lid operation for the huge centre console and properly engineered cupholders.

Lovely lush materials of satisfying quality are further plus points.

We’re also fans of the NX’s electric door opening system with a failsafe handle, meaning you can grasp the door handle inside or out and a solenoid activated by a press in of a thumb releases the door quickly and naturally in a single action; it feels… upmarket and ergonomic once accustomed to.

Accessing the back seat is easy due to the latest model’s larger proportions. Much of the same applies out back as the front seat area in terms of quality of finish and attention to detail. Sculptured and enveloping backrests (adjustable for two reclining positions), a well-padded cushion and more-than-sufficient space for two burly adults or three smaller people means this NX is more family friendly than the swoopy exterior styling suggests.

We’re also happy to find large people-facing air vents, two USB and a 12V outlets, one-touch electric windows with that premium-car soft close mechanism, overhead LED lights, grab handles, centre armrest with cupholders, map storage behind both front seats, coat hooks and good lines of vision further enhance the appealing and comfortable back seat environment. It feels like a Lexus should.

Further back than that, after releasing the electric tailgate via either an interior button or exterior switch, you’ll find that the boot has a fairly high loading lip, but then offsets this with a long, flat floor with matching levels of appropriate-quality finishes. Another 12V plug and two bag hooks are included, along with ample lighting and tie-down hooks. There’s also a hidden deep storage compartment underneath the floor, due to the discontinuation of a spare wheel (due to runflat tyres, remember).

Capacity is rated at a fairly ordinary 520 litres, extending to 1411L with the split/fold backrests folded. You’d expect a remote actuation for the latter like Mazda wagons have had for decades, but none is found at this price point.

Note there is no solid cargo cover either, just a flexible/flimsy fabric item that’s foldable and easily stored.

Overall, though, despite of its base positioning within the NX hierarchy, the 250's interior experience is in keeping with the brand's image.

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.

The Hyundai Palisade range is fairly straightforward, offered in two trim levels. We’re looking at the recently added mid-spec Elite here, which sticks with an eight-seat layout and is priced from $76,500 before on-road costs. Step up to the flagship Calligraphy and you can choose between seven or eight seats, depending on how often you’re playing chauffeur.

Price-wise, the Palisade Elite hybrid does sit above its perceivd rivals. The Toyota Kluger GXL Hybrid starts from $71,930 MSRP, while the smaller Kia Sorento Sport+ Hybrid undercuts it more noticeably again at $67,180 MSRP. So yes, you are paying a premium here, but the Hyundai is quite a bit bigger than those two models.

That said, the features list does a decent job of justifying it. You get leather-appointed upholstery, power-adjustable front seats with heating, a heated steering wheel and power-folding outboard seats in the second row, all things that make day-to-day family life a bit easier.

Tech is another strong point. There’s a 14-speaker Bose sound system, dual 12.3-inch displays, built-in navigation, over-the-air updates and three-zone climate control. Charging is well covered too, with six 100W USB-C ports, an additional data port, two 12-volt sockets and a wireless charging pad.

There are a few newer touches worth mentioning. A fingerprint authenticator can store up to two users, which is handy if the car gets shared, and this generation also introduces two digital keys. You also get access to Hyundai’s Bluelink app, which allows for remote functions like pre-conditioning the cabin, locking or unlocking the car and checking its location.

On the practicality front, there’s a full-size spare alloy wheel, a 360-degree camera system and a powered tailgate. Families will also love the four ISOFIX child seat mounts and five top-tether anchor points.

There are two ways of looking at this.

Yes, the NX 250 is powered by a variation of the same engine found in the humble base Camry Ascent in Australia at almost half the price. On the other hand, it’s a Toyota powertrain and everything that’s good and reliable and dependable about that. Which is not always the case with premium SUVs.

Dubbed Dynamic Force, which may imply forced-induction like a turbo or supercharger but there isn’t any, the 2487cc 2.5-litre naturally aspirated direct-injection D-4S twin-cam four-cylinder engine delivers 152kW of power at 6600rpm and 243Nm of torque at between 4000rpm to 5000rpm.

Drive is sent to the front wheels only, via an eight-speed torque-converter automatic. Tipping the scales at a pretty hefty 1705kg, it’s nonetheless the lightest NX, and manages a power-to-weight ratio of 89.1kW per tonne. That’s about the same as a GLC 200, which uses a 2.0-litre turbo petrol engine.

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.

Rated Euro6b, the NX 250 demands 95 RON premium unleaded petrol. Same as Camry, actually,

We recorded a decent 9.7 litres per 100km during our time using the NX 250 in city, urban and rural conditions, against the trip computer’s 9.5L/100km and the official combined average of just 6.9L/100km.

Note this may be so because there was a lot of fast back-road driving, as the engine loves a rev and there’s a palpable wave of power that comes on strongly between 5000rpm and 6500rpm. A bit like Mazda’s naturally-aspirated units, but just not as sonorous.

At 55 litres, the fuel tank will allow for up to 797km based on the combined average cycle between refills.

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!

The NX 250 truly is a tale of two cars.

Around town, it is utterly capable and benign. The 2.5-litre atmo four-pot petrol unit is a revvy, raucous sort of engine, pulling away strongly off the line, responding quickly to pressing down on the throttle, shuffling up through seven of the lower gears smoothly (top is a highway overdrive), and generally being an easy vehicle to drive.

About the only concern is how noisy the engine can become if you’re needing to accelerate hard, with a definite mechanical zing that gives the Lexus a bit of a hoon attitude. We’re also a little hesitant about using the Sport mode in built-up areas, as ratios are held on to whether up or down shifting, amplifying the loud nature of this powertrain.

Other aspects of the NX 250’s driveability around town rate highly: light yet linear steering, with a tight turning circle providing easy manoeuvrability and parking; firm yet still absorbent suspension, offering an appropriately isolating ride over most bad road surfaces; and an overall sense of sound engineering. It seems quieter than an equivalent RAV4, more importantly.

Which led us to initially conclude that, in an urban environment, you’d naturally pay the extra $3K for the NX 250 Hybrid, to eliminate that noisy engine when pushing down hard on the throttle. Easy.

However, then we ventured out on a long rural drive, a few couple of hundred kilometres from the big city. On country roads, the NX 250 really sparks up in a most compelling way.

Yes, the engine is still a bit rowdy, but as the revs rise and the needle edges near the 6800rpm red line, the Lexus just keeps on building up speed rapidly, providing an unexpectedly sporty edge. Above 5000rpm this thing still has plenty of oomph, relying on a deep well of power to really extend its legs.

It also makes sense to slot the auto lever into manual, and use the finely positioned paddle shifters. That’s when you’re most aware of the gearbox being a torque-converter auto, with defined and assertive selections. It’s a good way to feel involved in the experience too.

Actually, as a mechanical ensemble, it all comes together at speed; that light and easy steering remains relaxed yet reactive, weighing up nicely if you choose Sport. The handling maintains a fluid, connected feel, with ample levels of grip from the Bridgestone tyres.

It occurred to us that driving the NX 250 Hybrid out on rural backroads would deny the enthusiast of the base model’s lightness and agility, since the latter weighs hundreds of kilos less; the brakes are perfectly modulated instead of feeling vaguely mushy and/or trigger happy as with many electrified SUVs; and – even with the road noise being well-supressed – you’re far less aware that the atmo petrol engine is singing loudly at speed.

Plus, the ride out in the sticks, even on our craggy old test strip that would jar the bones of some other midsized SUVs, remains calm and comfortably firm. That’s real progress for the NX.

We’d appreciate a bit more nuance in the way the stability control kicks in (quite late) to catch the tail; while the driver-assist tech like the adaptive cruise control and lane-keep assist do their jobs admirably, the latter’s constant chiming can be annoying; and there's a fair amount of road-noise intrusion over coarse bitumen. Like most midsized luxury SUVs, actually. Still quieter than a RAV4, though.

No jarring faults then. Lexus has done its homework and fixed most of the things that annoyed or infuriated us about the previous generation version. Good work.

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 Hyundai Palisade holds a five-star ANCAP safety rating from testing conducted in 2025, and comes equipped with eight airbags, including curtain airbags that extend across all three rows.

The safety suite is comprehensive, covering most of the expected bases. You get blind spot monitoring, lane keeping assist, lane departure warning, forward collision warning, a 360-degree camera system, front and rear parking sensors, rear cross-traffic alert and side exit assist.

There are a couple of omissions worth noting. It misses out on emergency call functionality, and there are no seatbelt reminders for the two middle seats in the second and third rows.

The adaptive cruise control isn’t well-calibrated as it slows down firmly on hills, up to 10km below the set speed limit, which is better than going over the limit but still makes the system feel a bit clunky in real-world use.

Autonomous emergency braking with pedestrian, cyclist and motorcyclist detection is operational from 5.0-85km/h, and up to 130km/h for vehicle detection.

For families, there’s solid flexibility with four ISOFIX child seat mounts and five top-tether anchor points, making it well set up for multiple child seats across the rear rows.

Since the beginning of 2021, Lexus offers a five-year, unlimited kilometre warranty with roadside assistance. It used to be four years.

Service intervals are at 12 months or 15,000km, whichever comes first.

The NX also includes three years and 45,000km of capped-price servicing, with each one costing $495 – and as we’ve noticed in the recent past, that is very highly competitive pricing for a luxury brand.

Plus, there’s also Lexus’ ‘Encore’ aftersales subscription program offering myriad offers and services.

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.