Volkswagen Touareg vs Hyundai Palisade

What's the difference?

A car as impressive as it is frustrating, the Touareg R is a vehicle for a very specific buyer. Someone whose daily commute consists of limited distances, someone who can always charge at home overnight and someone who appreciates the subtlety of the performance and luxury the Touareg brings.

For everyone else - there are better options. Performance-focused PHEVs can be tricky to charge and extract the full benefit from, and at this price you have access to some serious performance-oriented combustion SUVs or the choice of going fully electric.

While this R-badged VW might be the most mind-bending of the lot then, it also has the most 'specific' appeal.

The Palisade Calligraphy is a nice SUV to drive on road. It’s composed and refined, and as an eight-seater, it makes a sensible daily driver, especially for those of us with more than a couple of children.

My teenagers loved this Palisade because there were charge points for everyone – namely them – and that second row, according to them, is very comfortable.

It has a few niggles, but, while it’s not perfect, the Palisade Calligraphy does so many things so well that you are willing to forgive it its few quirks and AWD gives it a handy advantage over any of its 2WD rivals. 

The Touareg, as always, screams big Volkswagen. It’s more subtle than the Porsche Cayenne and Audi Q7 with which it shares its underpinnings, yet looks as slick as either up close.

It’s defined in its face by a massive black grille, integrated light fittings, and as usual with Volkswagen, some pretty subtle highlights and tail-lights in attractive LED patterns.

The wheels sell the vibe of an R. They’re enormous and gloss black, matching the theme and style of its smaller siblings, black highlight trims replace chrome or body colour bits to set it apart from the rest of the range.

It doesn’t look quite as modern as something like Kia’s Sorento or EV9, and it doesn’t look as elegant as the Volvo XC90 or as defined as the Land Rover Defender, all in the same price bracket.

This helps the Touareg maintain a certain mainstream appeal, and a sporty edge, without being too egregious.

Still, some might want some more overt visual flourish to indicate they’re driving a vehicle which is capable of sprinting to 100km/h from a standstill in 5.1 seconds.

Perhaps I’m in a different camp, one which appreciates the ‘sleeper’ nature of a giant family SUV capable of incredible driving feats when pushed.

Inside is always a pleasant surprise in a Touareg. While it might be the most affordable of the giant SUVs on this platform, it maintains the air of luxury and plush nature of its more expensive counterparts from Audi and Porsche.

You’re met by nicely trimmed leather seats and a chunky VW R steering wheel, massive screens and lavish amounts of padded leather surfaces everywhere. It feels every bit the luxury SUV the price indicates, in case you were worried you’d be getting something which feels more like a T-Roc than an Audi. For what it’s worth I quite like all the Volkswagen switchgear.

This is a nice looking SUV in a generic, non-offensive way.

The Calligraphy is in the top ranks of the Palisade range, so, in terms of design you'd expect it to be a bit easy on the eye and it is, especially the exterior, from the big grille all the way back.

Our test vehicle’s colour looks a lot like black to me. Hyundai calls it 'Robust Emerald' and I started to not strongly dislike it after a few days.

The interior has a real premium look and feel to it with Nappa leather accents and expanses of soft-touch surfaces adding to that prevailing overall impression.

This is a cleanly designed space – it's really quite easy on the eyes – and it's comfortable to be in. Bonus: the build quality is great, it all feels so well put together. 

This Palisade is also a prime example of a car maker effectively blending high-tech displays and controls into a cabin in a low-key way – nothing really seems out of place here and everything is easy to locate and operate.

It’s a big SUV with big interior dimensions. It feels spacious and wide on the inside with a large centre console area for spreading out and a highly adjustable driver’s seat.

The seats are plush and comfortable, and visibility is pretty solid out of the cabin. Again, you're greeted by excellent touchpoints, from the steering wheel to the door cards and there’s even lashings of padded leather trim down the sides of the centre console for your knee to rest on.

Volkswagen’s screens are usually some of the best in the business and that continues here. They’re bright, sharp and served up with attractive and mostly functional and easy-to-navigate software.

The hardware behind them is also enough to keep them lightning fast when reacting to inputs, with satisfyingly smooth animations, too.

The one thing I like a bit less is how a few of the menus can be confounding. It took me a while to figure out I needed to set the default battery level higher than its current charge to get the engine to stay on, and I’d also love a button to simply switch between EV and hybrid mode.

In fact, the lack of buttons is one of the major issues in this car. Sure, the enormous centre screen is an impressive feature, syncing up with the dash design nicely, but you’re also forced to negotiate with touch elements for key climate functions. No matter how fast or slick the software is, there’s no compensating for a toggle or dial you can easily reach while you’re focused on the road.

For what it’s worth, the wireless Apple CarPlay worked seamlessly with the car in my time with it (and looked good too) while the wireless charger is rubberised and in a good location so your phone will be able to at least maintain its state of charge on the go.

Storage is plentiful up front, with large pockets with integrated bottle holders in each door, a large dual cupholder set-up in the centre console with variable edges and a large armrest console box.

In the back seat I have enough room for myself behind my own driving position at 182cm tall. It’s plenty wide and tall, but I don’t feel as though I had an enormous amount of legroom considering the size of the vehicle.

Still, the width will give you space for three adults across in relative comfort. Yes, there’s a large raise in the floor in the centre position to accommodate the all-wheel drive hardware underneath, but the width of the floor should allow a centre passenger to put their feet on either side.

Big door openings and the wide cabin make for easy child seat fitting, and there's even built-in window shades alongside two rear climate zones with physical controls, large bottle holders in the doors and a drop-down armrest, with some flimsy nets on the backs of the front seats to round things out.

Boot space is allegedly enormous at a quoted 810 litres, but the shape of it is less than ideal. Sure it’s nice and wide and oblong shaped at the base, but the rake of the boot quickly eats into the amount of height available, making it tricky to fit larger objects.

The space accommodated our CarsGuide three-piece luggage set with ease, but it didn’t leave much room to spare. It doesn’t feel like it’s double the 400 litre space typical of a one size-down SUV. 

There’s also a needlessly complex two-piece shelf, which lifts with the tailgate, but the boot wouldn’t completely close with the luggage set present unless you removed it. To the Touareg’s credit, the second row seats hinge forward significantly to expand space by a fair bit.

Under the floor there’s only a repair kit, as the huge PHEV battery takes up the rest of the space. A decidedly less than ideal flat tyre option.

Once you've spent any time in the Palisade Calligraphy cabin, you get to realise just how comfortable it is. 

The driver and front-passenger seats are very comfortable and very supportive, and these are both power adjustable. The driver’s seat is 12-way power-adjustable so you can precisely dial in your position.

There are so many handy features to the interior that if you can find something that's missing, I want to hear about it. 

There are plenty of storage spaces and cupholders* and lots of charge points, including a USBs up the front and two USB-Cs for each row’s passengers.

* Hyundai reckons there are 17 cupholders throughout the Palisade interior but I didn’t count them so we’re taking the company's word for it.

The second row is quite spacious and on the right side of comfortable and the passengers have access to sufficient controls including climate control. 

The outboard seats are heated and there are controls for the fan on the back of the centre console. There are USB-C points on the inside edges of the front seats for the second-row passengers, a couple of cupholders either side as well as sun shades on each second-row window.

That’s helpful if you're trying to get your little ones to sleep, or at least prevent the sun from blasting them in the eyes. 

In terms of child restraint points in the second row, you have three top tether points and two ISOFIX anchors and in the third row you have two top tethers and one ISOFIX location. 

The third row is the domain of children, or two adults if you don't like them. There's not a lot of room. I racked the second row forward just a bit to give me some much-needed knee room.

There are a couple of cupholders either side in the third row and passengers there do have access to air vents. This is sufficiently comfortable for children, but it's a no-go zone for adults. 

With all three rows in use, there is a claimed 311 litres of cargo space in the boot area, which doesn’t mean a lot until you can see what fits in there, for better or worse.

Now, normally in a Family review, you might expect to see groceries and maybe a pram in the rear cargo area as an illustrative measure of what you can or cannot fit in there. Well, that’s not my style.

This is an AWD vehicle, and I drive on dirt roads as part of any AWD test, so I wanted some items from my vehicle-recovery kit onboard, including a set of four MaxTrax (vehicle-recovery boards, if you don’t know already), an air compressor (to re-inflate a punctured or intentionally deflated tyre), a first-aid kit, and a tyre-puncture repair kit.

All of these things fit easily into the rear cargo area with the third row up and theoretically in use.

That listed cargo space increases to 704 litres with the third row stowed away.

Then, with the second and third rows down you’re at 2447 litres.

Kerb weight is 2070kg and GVM is 2755kg, so you have a little bit of wiggle room in terms of how much you can pack onboard. A full-size spare sits under the body at the rear. 

The Calligraphy is available as a 3.8-litre petrol front-wheel drive with an eight-speed automatic transmission and eight seats, or with the 2.2-litre turbo-diesel engine, eight-speed auto and AWD, as in our test vehicle, priced from $82,175 (excluding on-road costs).

Standard features include a 10-inch head-up display, heated steering wheel, Nappa leather-appointed seats, 12-way power-adjustable driver’s seat (with preferred position memory), ventilated first- and second-row seats, heated second-row seats, dual sunroof with tilt function, remote park assist (forward and reverse), a digital rear-view mirror and 20-inch alloy wheels with a full size spare wheel.

The Touareg offers a performance-focused plug-in hybrid (PHEV) drivetrain. Usually this means a little turbo four-cylinder engine and an electric motor, but instead this big SUV offers a 100kW electric motor and a 3.0-litre V6 turbo-petrol engine which combine for a whomping “total system power” of 340kW/700Nm.

This allows a 0-100km/h sprint time of just 5.1 seconds. Power is sent to all four wheels via an eight-speed automatic transmission and Torsen central differential. Up to 70 per cent of power can be sent to the front wheels, with up to 80 per cent of power going to the rear.

It is capable of driving at up to 135km/h under electric power alone, with the V6 kicking in beyond that speed.

It’s a rare set-up for two reasons. Firstly, it’s a plug in which maintains a large six-cylinder engine, and it runs even electric power through the transmission to all four wheels.

Some PHEV rivals, for example, use front combustion-drive only with no mechanical connection between the engine and the rear axle, which is driven purely electrically.

When it comes to towing specs, the Touareg offers solid official figures of 750kg for an unbraked trailer and 3500kg braked, although the maximum towball download is 220kg.

Our test vehicle has a 2.2-litre four-cylinder, common-rail, turbo-diesel engine sending 147kW (at 3800rpm) and 440Nm (at 1750-2750rpm) to all four wheel via an eight-speed automatic transmission. 

This Palisade has an AWD system called 'HTrac' (Hyundai Traction) and it operates on a similar principle to most other AWD systems in city-going SUVs, and that is it directs power to the appropriate wheels to optimise traction. 

This vehicle also has multiple drive modes – 'Comfort', 'Sport', 'Eco' and 'Smart' – for on road and 'Sand', 'Mud' and 'Snow' for when you go off-road.

These off-road drive modes are absolutely no substitute for 4WD, but they are fine for when conditions get slippery, for example, if there’s a little bit of rain on the bitumen or the dirt track becomes slightly muddy.

Like other plug-in hybrids, the official combined (urban/extra-urban) cycle fuel efficiency number for the Touareg R is an eyebrow-raisingly low figure which you know won’t be achievable in the real world, but is probably technically feasible in lab-style conditions. 

In this case, it’s 3.3L/100km. When I picked up the car it had a low charge level, and the next day I was able to top it up to just 50 per cent because I don’t have a power point in my garage, and the achingly slow 3.6kW maximum AC charging speed is severely limiting if you need to rely on the public network, as the 17.9kWh battery is relatively large.

This should bring you to the obvious conclusion the Touareg R is not a good hybrid if you can’t charge at home, as you’ll never extract the full benefit of the electric set-up. Perhaps adding evidence to this is its official energy consumption which comes in at a painful 21.1kWh/100km.

As for hydrocarbons, in my week of driving (in which I tried to pick up charge wherever I could) I saw over 14L/100km. Makes sense for a heavy petrol V6 SUV. I’d say you’re likely to see a figure like this on a longer journey or if you drive it with enthusiasm as the R badge encourages. To add additional pain, it requires 98RON premium unleaded fuel.

With a realistic maximum pure-electric range of closer to 40km compared to the official WLTP-rated 51km (more on this in the driving section of the review), the R is also best for people whose daily commute is relatively short.

I can’t imagine, for example, the best benefit of this car will be extracted from someone who lives in the urban sprawl and commutes to the city every day with distances in excess of 50km for a return journey.

Additionally, the hybrid mode is very EV-heavy, draining the battery relatively quickly unless you manually put it in preservation mode.

For nerds who could be bothered, this mode is potentially a nifty feature allowing retention of some EV range at the end of a long freeway journey. But it takes a certain buyer to even be bothered with this.

Can you see why plug-less hybrids are the Australian new car buyer’s electrification configuration of choice?

Fuel consumption is listed as 7.3L/100km on a combined cycle. On this test, I recorded 9.0L/100km. 

The Palisade has a 71-litre fuel tank. So, going by that on-test figure, you could expect a driving range of almost 800km from a full tank.

But remember you’ll be carrying more people and gear onboard so fuel economy will be affected accordingly.

Here’s where things get a bit frustrating, and your experience will vary dramatically depending on how you use this car.

One thing we can get out of the way immediately is the Touareg is deeply technically impressive when you attack a few corners. Its immediate electric thrust is capable of propelling this large object forward with eye-widening speed, and the air suspension, wide grippy tyres, Torsen centre differential and tidy steering tune conspire to make it mind-bending to carve corners in.

It’s flat, stable, and far more accurate and agile than expected. The only hint as to the sheer physics of wrangling the Touareg around bends is the tyres screaming out in agony as the suspension and all-wheel drive system work their magic to keep it all under control.

Once the electric torque pushes you out from the corner, the deep satisfying thrum of the 3.0-litre petrol V6 quickly takes over as you lurch forward on the almost fluid-feeling suspension. It’s laugh-out-loud satisfying and certainly enough to capture passengers' attention.

In this sense, the R fulfils its mission of transforming the big Touareg into a handling and acceleration hero, but despite all the cleverness it doesn’t feel as sharp or lean as the Golf R, T-Roc R or Tiguan R.

There’s still a massive battery, as well as huge complexity and weight to deal with, no matter how technically fast it is. There’s always the unsettling feeling of this amount of weight moving around, and the occasional slight delay from the transmission as it figures out what’s going on between the electric motor and big engine.

Then there are the compromises. Normally, I’m a huge fan of how plush and luxurious the Touareg feels. It’s usually such a step above its station in the VW Group, occasionally even feeling preferable to its platform relations, but the R has some issues.

For a start, the enormous 22-inch wheels and low-profile tyres ruin the day-to-day ride quality, crashing over bumps and road imperfections, despite the fact there’s also air suspension supposedly providing a buffer between you and the tarmac.

Even in the more comfort-oriented drive settings you can hear and feel every bit the moment the wheels contact a pothole or bump. Clearly, it’s tuned more toward handling than maintaining the same luxury feel as the rest of the range.

The transmission is also occasionally hesitant, either from a standing start or when switching between electric thrust and the engine. This is much better when the battery is charged up from the reserve level, as there isn’t enough charge when driving around as a hybrid to push a big, heavy (and always) all-wheel drive very far.

But hybrid driving is also frustrating, for reasons mainly related to the software. With the battery charged, the 51km of claimed driving range feels a tad ambitious. I was able to charge it to about 50 per cent (the battery is huge, at 17.9kWh, and I could only pull about 3.5kW from a local AC charging unit) and scored about 20km of driving range.

It drains quickly, even in the hybrid driving mode, as it relies on the electric motor a lot for initial take-off.

This means unless you set the battery preserve mode manually in the hybrid settings screen, it will likely run the battery dry before you’re even able to get it somewhere where it can take full advantage of the extra electric thrust.

As an electric vehicle it’s also only alright. The short time I was able to spend in full EV mode proved the battery will drain faster than advertised, and the regen is so-so for assisting in braking.

Other more performance-focused PHEVs suffer the same issue. For example, I felt largely the same way about the much-maligned four-cylinder PHEV Mercedes-AMG C63.

While hybrids like this may be impressive when conditions are ideal, they’re ultimately frustrating to use in reality. It’s a shame, because I wanted to like it more but it doesn’t quite capture the same magic of its R-badged forebears and siblings.

This is an easy driving wagon. It's nice and comfortable, it's refined, it's always composed and it's always controlled and it's just an all around nice drive from the engine and the auto, which are a really good pairing. 

As mentioned earlier, kerb weight is listed as 2070kg and this Palisade has an 11.8m turning circle, so it’s not an insubstantial vehicle to steer around.

It’s not very dynamic, not very lively, but it has a nice consistent feel to it all – and being composed and consistent is important with something that's intended as a people mover, as a family vehicle because that's what you want. 

Ride and handling are well sorted out and, though there’s a touch of firmness to the suspension, ride quality is smooth in general terms. 

There are the paddle shifters on the steering wheel if you want a little bit more input into shifting up and down in the automatic transmission, but it’s rather clever so you can just let it do its job as it does that nicely. 

There are four on-road drive modes – Comfort, Eco, Sport and Smart. Smart tweaks vehicle characteristics such as engine output, transmission settings and braking to suit your driving style, and depending on which of the other modes you select, it will adjust those characteristics and/or more to suit the terrain or the conditions you’re driving in. 

And while this Palisade is impressive in terms of performance and driving characteristics, there are a few niggles. 

Acceleration is a bit laggy and it takes a heavy right boot to get the Palisade moving at pace.

Some of the driver-assist tech is often abrupt and intrusive. The traffic-sign recognition (or speed limit assist) is clunky. It detects and reacts to signs that don't apply at that time of day, say school zone signs, or it picks up on signs that don't apply to that section of road.

So, it's forever chopping and changing between speeds you should be at and speeds you shouldn't. You can adjust those settings or switch them off in the Hyundai app via the touchscreen multimedia system, but those settings return as defaults when you next start the vehicle. 

Now for some dirty talk. The Palisade Calligraphy is an all-wheel drive SUV wagon that does sufficiently well on terrain that would be moderately challenging for a 2WD vehicle. 

Our light-duty test track is sandy and there are some very shallow wheel ruts – nothing serious – and this Palisade handled all of the minor challenges well.

Ride quality over some of the lumpier sections was good. It's a bit on the firm side as you'd expect because this is a SUV designed for the suburbs not the Simpson, but it is perfectly reasonable on a very easy dirt track in dry conditions. 

And that’s the good thing about an AWD over a 2WD vehicle; you have that extra degree of traction, especially if you get into a traction-compromised situation such as a slippery wet bitumen road or a slightly muddy, but otherwise well-maintained, gravel route. 

This Palisade has three terrain driving modes – Sand, Mud, and Snow – which each adjust throttle response, engine output, and the automatic transmission, among other things, to ensure you keep moving safely with controlled momentum. 

If you’re planning to use your daily driver / family mover as a towing platform it’s handy to note that the Pailsade’s towing capacity is 750kg (unbraked) and 2200kg (braked).

The Palisade has the maximum five-star ANCAP safety rating, from testing in 2022.

As standard the Calligraphy has seven airbags, as well as a stack of driver-assist technology including AEB, adaptive cruise control, a 360-degree camera, lane keeping assist and more.

The standard five year, unlimited kilometre warranty features with one year of complimentary roadside assistance provided (renewed for another year with each service at an authorised dealer).

Servicing is required once every 12 months or 15,000km and the most affordable way to do it is with pre-packaged service plans bundled in with purchase. These come in at $3400 for five years (a saving of $668 over the a-la-carte program) or $2050 for the three year plan (a saving of $222).

Even in its most affordable form this makes servicing average $680 a year which is a far cry from most affordable brands, but it could be worse considering the complexity of the powertrain.

Every Palisade is covered by a five-year/unlimited kilometre warranty and roadside assistance is complimentary for the first 12 months, renewed annually (for the life of the vehicle) if you have your Palisade serviced at an authorised Hyundai dealer. 

Service intervals are set at every 12 months or 15,000km, whichever occurs soonest, and pre-paid plans are available over three, four or five years.

The latter costs $2445, which equates to $489 per service. Not cheap but not outrageous.