Mercedes-Benz GLC-Class vs Hyundai Palisade

What's the difference?

Like I said right from the start, this new, hybrid version of the AMG GLC63 is technically superior to the model it replaces in every meaningful way. It is faster, more powerful and more fuel efficient and therefore a better performance SUV than the model it replaces.

Is it a better model than the one it replaces? Ultimately that will come down to how much stock you put into the soundtrack and your feelings on an AMG not powered by a V8 engine.

Because if you can see past that, then the AMG GLC63 is an absolutely fantastic performance SUV. Not only does the new powertrain make it faster in a straight line, but the chassis is very well-balanced, making for an engaging driving experience.

For those who can look past the smaller engine they will be rewarded with an incredibly fast and rewarding-to-drive member of the AMG family.

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

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 GLC63 is unmistakably an AMG from the moment you first lay eyes on it. That’s thanks to the AMG-specific elements, starting with the grille with vertical strikes and the AMG crest on the bonnet; which is now a signature item for the performance sub-brand.

The GLC63 is also fitted with the Night Package II design kit; this adds a darkened grille and black chrome badging to further enhance its visual appeal.

The AMG-specific alloy wheels and more aggressive stance do mean the GLC63 stands out from the rest of the GLC range, helping it look fast even when it’s standing still.

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.

Inside the GLC63 is clearly a derivative of the rest of the range, with its C-Class-inspired design and layout, but there’s enough AMG-specific elements to ensure it looks and feels special. This starts with the AMG steering wheel, which comes not only with a thick rim wrapped in Alcantara, but also some AMG special dials to adjust the various performance settings for the powertrain, suspension and transmission.

Then there are the AMG-specific seats, which look good and offer good support for the driver and front seat passenger. The rear seats offer decent space for what is a mid-size SUV, with room enough for two adults or teenagers or three smaller kids.

Those in the back aren’t particularly well looked after though, with only rear air-con vents and small door pockets but no USB charging ports or other small item storage.

The boot is 590 litres, down from 620L in the rest of the range, thanks to the addition of the rear-mounted electric motor. There’s also no room for the temporary spare the rest of the GLC range gets and instead you have to make do with a puncture repair kit.

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.

This is what lies at the heart of the AMG GLC63’s success or failure. As I mentioned at the beginning, the previous generation’s 4.0-litre twin-turbo V8 has been replaced by an F1-inspired plug-in hybrid powertrain.

But don’t think that means AMG is suddenly focused on efficiency over performance. When AMG says the powertrain is inspired by the brand’s success in Formula 1 racing, what it means is the battery and electric motor provides a significant performance boost to support the internal combustion engine, not just save fuel.

To that end the combination of the turbocharged 2.0-litre four-cylinder petrol engine and the rear-mounted electric motor produces an impressive 500kW and 1020Nm. That’s a massive jump over the 375kW/700Nm made by the outgoing V8.

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.

Mercedes makes no secret that the battery is designed for performance, not saving fuel. It only has a 14km EV range but can recharge quickly on the move to provide a power boost when needed.

But despite all that, the GLC63 is actually significantly more fuel efficient than the old V8, using a claimed 7.3L/100km, which is a massive 4.9L/100km improvement over the old model. Although, on our day-long test drive we didn’t manage to come close to that claimed figure and instead saw returns around 11L/100km, albeit after a lot of spirited open-road driving.

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!

Anyone who still believes in the adage ‘there’s no replacement for displacement’ hasn’t driven a modern turbocharged and hybridised engine. The GLC63 is a demonstration of the metaphorical and literal power of modern technology, combining an extremely efficient and potent internal combustion engine with an electric motor to make enormous real-world performance.

To be blunt, the GLC63 feels like a rocketship out of corners, launching with a ferocity and relentlessness the old V8 simply can’t match. It shouldn’t come as a surprise, a mid-size SUV with 1020Nm was always going to have plenty of performance, but even so it’s a shock to the system every time you give the GLC63 full throttle. Officially AMG claims it takes just 3.5 seconds to run 0-100km/h and has an electronically limited top speed of 275km/h - mighty impressive figures for a five-seat mid-size SUV.

To help get all that torque to the road, AMG deploys torque distribution technology that allows for it to be split an even 50/50 front/rear all the way to 100 per cent to the rear tyres.

Other technologies deployed to enhance its handling include AMG Ride Control suspension with adaptive damping and rear-axle steering. There’s also eight AMG Dynamic Select driving modes and four AMG Dynamics settings (Basic, Advanced, Pro and Master), so it’s a complex vehicle that is designed for the enthusiast.

While it’s easy to drive around town, once you get out on the open road you can really get a sense of the GLC63’s performance potential. Beyond just its powertrain the suspension offers good body control and the rear-axle steering helps it feel agile and responsive. 

It’s not perfect though. At times the complexity of the system does lead to some hesitation when you put your foot down. It certainly lacks the linear power delivery of the old V8 and makes for a slightly trickier driving experience at times.

As for the sound, which is one of the biggest elements missing from the V8, Mercedes has added AMG Real Performance Sound, which features a pressure sensor in the exhaust that picks up on the engine note and plays it through the speaker system. It certainly helps make for a louder, more noticeable engine noise, but it still sounds more like an A45 than the previous GLC63 and for many would-be buyers, that’s a major turn-off.

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.

The GLC63 is covered by Mercedes Australia’s usual five-year/unlimited kilometres warranty.

As for maintenance, Mercedes offers service plans, spanning three to five years. Three years will cost you $5025, $6455 for four years and five years is priced from $7180. Servicing intervals are 12 months or 20,000km, whichever comes first.

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.