2026 Hyundai Palisade: V6 and diesel to be axed in favour of four-cylinder and hybrid

Details of the 2026 Hyundai Palisade have been uncovered ahead of second-generation large flagship SUV’s scheduled Australian arrival in late 2025. 

The new Palisade had already been confirmed to bring a hybrid powertrain for the first time – replacing the existing 2.2-litre turbo-diesel four-cylinder – in order to rival the Toyota Kluger, and Hyundai had previously also said a 2.5-litre turbocharged four-cylinder petrol engine was “under study” for Australia.

Now Australian government certification documents confirm the next Palisade will offer a full range of front-wheel drive and all-wheel drive options, powered by both hybrid and non-hybrid 2.5-litre turbo-petrol powertrains. 

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No other engines are included in the filing, signalling the end of not only diesel power but also the 3.8-litre petrol V6 from the new Palisade lineup. 

The Australian Design Rule documents also show the next-generation Palisade, codenamed ‘LX3’, has again been approved in both seven- and eight-seat interior configurations. 

Hyundai Australia could not share any details on the new Santa Fe’s powertrain options or otherwise when contacted by CarExpert.

The Palisade HEV (hybrid electric vehicle) has been granted approval in four model grades – seven-seat front-drive and AWD, and eight-seat FWD and AWD. 

The Palisade HEV is already on sale in the US, where it’s offered in both FWD and AWD layouts, both priced $US1000 ($1537) higher than equivalent petrol-powered versions.

In Australia, the HEV is expected to be priced similarly to the existing diesel Palisade, which is currently priced from $70,800 before on-road costs, although Hyundai is currently offering drive-away deals on certain variants. 

The hybrid system comprises the Hyundai group’s 2.5-litre turbocharged four-cylinder petrol engine (T-GDI) and six-speed torque-convertor automatic transmission, but adds a single electric motor powered by a 1.65kWh lithium-ion battery. 

US-market Palisade hybrids are rated at 258hp (245kW) and 339lb-ft (460Nm) of torque, and while these figures cannot be directly carried over to Australian vehicles, our Palisade hybrid should still out-muscle the turbo-diesel’s 147kW/440Nm outputs.

That will also make it more powerful than the 3.8-litre V6 in the current model, which makes 217kW/355Nm and has official combined fuel consumption figures of between 10.8-11.1L/100km. 

Based on overseas specs, the Palisade HEV will be marginally thirstier than the diesel, with average consumption of 8.8L/100km against the diesel’s 8.6-8.8L/100km.

The Palisade’s non-hybrid 2.5-litre turbo-petrol four – already seen under the bonnet of the Hyundai Sonata N Line in Australia, where it makes 213kW/422Nm – has also been approved in seven and eight-seat Palisade, in both FWD and AWD forms.

ADR documents also confirm the second-generation Palisade will be larger than its predecessor in almost every dimension, growing an additional 65mm to 5060mm in length on a 70mm longer (2970mm) wheelbase. 

Overseas specs show no change in cargo volume or cabin space between petrol and hybrid versions. 

The cabin is expected to feature a 12.3-inch digital instrument cluster and a 12.3-inch infotainment touchscreen, plus a more premium look including ‘pixel’ lighting elements.

Further details are expected to be confirmed by Hyundai Australia as the MkII Palisade’s Australian arrival – scheduled between October and December this year – draws near. 

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