2025 Hyundai Palisade to say goodbye diesel, hello hybrid

Hyundai’s next-generation Palisade is reportedly entering production in 2025, and will swap its diesel for a pair of hybrids.

Korean outlet ET News reports prototype development of the Palisade replacement, codenamed LX3, will begin in the second half of this year ahead of mass production beginning in January 2025.

It will reportedly offer a choice of a 2.5-litre hybrid four-cylinder engine and a 3.5-litre turbocharged V6, with ETNews reporting the 2.2-litre turbo-diesel four will be dropped due to stricter emissions regulations.

The report makes note of “two types” of hybrid, potentially indicating the Palisade will follow the smaller Santa Fe in gaining both conventional and plug-in hybrid systems.

The Palisade will also reportedly adopt Hyundai’s latest software-driven vehicle (SDV) technology, with wireless over-the-air updates for suspension, brakes and airbags, as well as a Level 3 autonomous highway driving system.

While the current Santa Fe’s mid-life update saw it move to a new platform supporting hybrid and plug-in hybrid powertrains, the Palisade’s mid-life update saw no such move.

That has left it without an electrified option, and therefore no rival for models like the Toyota Kluger hybrid.

That hasn’t stopped it from remaining popular in Korea, so much so it was Hyundai’s best-selling SUV there last year.

It arrived locally at the end of 2020, with a choice of either a 3.8-litre petrol V6 and a 2.2-litre turbo-diesel.

The V6 produces 217kW of power and 355Nm of torque, but is available only with front-wheel drive despite all-wheel drive being offered on left-hand drive V6 Palisades.

The turbo-diesel produces 147kW and 440Nm, while using considerably less fuel (7.3L/100km vs 10.7L/100km).

Hyundai sold 4000 examples of the Palisade in Australia, up 7.5 per cent on the previous year.

It was outsold by the Santa Fe (4595 sales), as well as the Mazda CX-9 (6460 sales) and Toyota Kluger (12,562 sales).

The Palisade will have company at the top end of Hyundai’s SUV line-up, with the electric Ioniq 7 launching in 2024.

It’s expected to be a similar size overall to the current Palisade and could offer a choice of single-motor rear-wheel drive and dual-motor all-wheel drive powertrains like its Kia EV9 cousin.

MORE: Everything Hyundai Palisade