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By Jake Lingeman
Managing Editor
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Hyundai's redesigned Palisade sport utility vehicle (SUV) is definitively more upscale than the last-generation model. Whether that will help or hurt sales of Hyundai Motor Group's growing lineup of electric SUVs or sister company Genesis remains to be seen.
The second-generation Palisade was revealed for Korean media outlets last week. The U.S. version is expected to debut next year. A Hyundai spokesperson told Newsweek that there will be "significant" differences between the Korean and U.S. versions but that the company was not prepared to show their hand yet.
Hyundai's first images of the new Palisade reveal it as having a new, bold grille flanked by LED headlights. Its pronounced and squared wheel fenders and new wheels look like something from a Mercedes-Maybach. The taillights match the front block of lights and the rear fascia is more decorative all around visually linking to Range Rover-like styling.
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The new Palisade is bigger than the outgoing model but no official specifications are currently available. For the Korea market, this allows for seating of up to nine people courtesy of a front center console that flips up to make a seat.
The interior has rich styling and surfaces straight from the Genesis playbook. Rich brown materials, warm ambient lighting and a cleanliness that wasn't in the last version are apparent here. The new Hyundai Palisade has a stretched, curved digital display acting as touchscreen infotainment and digital driver cluster. It also features several wired and wireless charging options.
"The 2026 Hyundai Palisade takes a bold step upmarket, blending a boxier design, a more refined character with a commanding presence, and the infusion of more tech, including a hybrid powertrain. The next Palisade will stand out in the market, representing another example of the strong and unique styling the Hyundai Motor Group design teams are pumping out," Paul Waatti, director of industry analysis at AutoPacific told Newsweek.
"However, moving the Palisade further into luxury territory could complicate lineup dynamics, putting pressure on Hyundai's Ioniq 9 electric flagship and offerings from the group's luxury arm, Genesis. How Hyundai balances this internal competition and positioning while maintaining clear value differentiations across its products will be pivotal in defining the success of this more premium Palisade."
At this year's LA Auto Show, Hyundai revealed its first three-row electric SUV, Ioniq 9, which is similar in both dimensions and passenger-carrying abilities to the Palisade, though markedly less luxurious. The model features different interior and exterior styling than the rest of the Hyundai lineup though some technology is shared.
On the other side is Hyundai Motor Group's luxury brand Genesis and its three-row GV80 SUV. That vehicle has been praised for its ability to stand out even among the Mercedes and BMWs of the world in finery despite having lesser performance and a lack of track-ready models. The current GV80 features diamond-stitched seats and crystal-like controls along with a giant 27-inch digital screen. Heated, cooled and massaging seats are available.
Not only does the new Palisade compete against Ioniq 9 and Genesis GV80, but also the Toyota Grand Highlander, Lexus TX, Chevrolet Tahoe, Jeep Grand Cherokee L, Nissan Armada and Mazda CX-90.
Analysts see the Hyundai Motor Group SUVs as partners, as opposed to vehicles that will be cross-shopped.
"The new Palisade should be a nice compliment to Hyundai's forthcoming all-electric Ioniq 9 rather than a competitor; we see these two crossovers as largely appealing to different buyers, though they'll certainly work together to elevate the Hyundai brand," David Undercoffler, editor-in-chief at Autolist and head of consumer insights at CarGurus told Newsweek.
"Meanwhile, we doubt the Genesis brand's crossovers would be much affected either; those more expressive and statement-making models will coexist with the Palisade much in the way that some Cadillac SUVs are sold alongside their GMC variants."
The Palisade is already one of Hyundai's stronger sellers, the same as its more rugged twin, the Kia Telluride. This year, Hyundai's sales of the three-row SUV are up a 39 percent, dwarfing everything except the company's Elantra and Tucson, and nearly triples Ioniq 5 in sales.
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