Traditionally, a brand’s luxury flagship won’t see much change when transitioning from one generation to the next, often forgoing a drastic transformation in favour of a subtler evolution of sorts. The reason being that these vehicles are usually found at the business end of a manufacturer’s offering and their most generous of clientele tend to value consistency and/or familiarity among other things.
Evidently, nobody told Hyundai about this unsaid rule or maybe they did and the Korean brand simply chose to disestablish this long held idea. Instead, what they’ve done is create an establishment of their own at the very top of the brand’s pyramid with the Hyundai Palisade.
The Palisade had its international debut in 2018, landing on our shores a couple of years after in 2021 (click here for my review of the first-gen model). At the time of its launch, it was Hyundai’s largest ever production car, a title it still retains to this day. It wasn’t just grand though because grandeur was of equal importance for the big Korean SUV which came kitted out with all the bells and whistles imaginable. The model destined for New Zealand also sported a 2.2L turbo diesel powertrain. Fast forward to 2026 and the Palisade has made a local return for its second generation, only this time it looks unrecognizable against the vehicle it replaces, the diesel has also gone, swapped out for a 2.5L petrol turbo hybrid unit. But with so much change, has the luxury Hyundai lost its identity at all?
My argument against the previous statement starts in the design department itself. Now, a flagship vehicle isn’t just supposed to be a big luxury barge but it’s also meant to introduce new technology and design to the market. The Palisade certainly excels at the latter because this thing is out there! Love it or hate it, the design actually evokes a response. When was the last time you could say such a thing about an SUV? Most of them tend to sit on the proverbial design fence but the Palisade does not. Kudos to Hyundai because they are one of the few manufacturers still pushing the envelope in this department, just take a look at their lineup for evidence, be it the compact Kona or the IONIQ 5 & 6, they are out to make a statement!
And at 5.065m in length, a statement is exactly what the Palisade makes! Width comes in at 1.98m with height at just over 1.8m so it’s not a compact vehicle by any stretch of the imagination. Then again, it isn’t meant to be. Instead, the Palisade is meant to seat seven or eight people in comfort and for that, you do need the space.
The Calligraphy is the only variant that our market will get so owners of the Palisade will receive the utmost luxuries and from an exterior point of view, that includes those sizable 21inch wheels, shiny roof rails and other trims. Colour options are also noteworthy with our review model coming in an unflattering ‘Ecotronic Grey Pearl’ but thankfully, a few splendid choices do exist. ‘Robust Emerald Pearl’ would be my recommendation but ‘Galaxy Maroon Pearl’ and ‘Classy Blue Pearl’ are also worth a look. Throw in the ‘Cast Iron Brown Pearl’ for a wildcard entry!
If you thought that was a lengthy enough list then you weren’t thinking hard enough because even more choices exist once you step into the Palisade. Our review model came with the ‘Obsidian Black Nappa Leather’ option which is standard but buyers will also get the choice of ‘Pecan Brown’, ‘Dark Charcoal’ or ‘Dark Navy’, all finished in nappa leather.
Coupled with a black headliner, privacy glass and other dark finishes, the cabin did feel a tad melancholic at times so my recommendation would be the slightly lighter, ‘Dark Charcoal’ interior specification. While I do like the idea of Pecan, it will likely be a bit too much for most, although, nothing says true luxury like a decent shade of tan leather. Thankfully, the white leather option from the previous generation vehicle has been done away with. White leather looks great in theory and on a press car but over the long-term, it will absorb the colours of your life, a decent pair of Levis will turn it denim blue for example.
Worth noting too that the Palisade features leather upholstery all the way to the third row with all three rows receiving heated seats. The front two rows are ventilated as well with the driver and passenger seats boasting massage functions too. Some may think it pointless for the third row to feature leather as well as heating but remember that the Palisade is a true seven/eight seater with enough space and relative luxury on offer for all of its occupants.
I’ve previously touched on the idea of a flagship vehicle debuting new design but as technology has become such an integral part of the automotive scene, it’s as important for the brand’s flagship model to show off new technologies. As an old soul of sorts, to me, a luxury vehicle is defined by the quality of its finishing, softness of the leather and so on. Evidently, that is an ancient school of thought when compared with those whose perception of luxury comes from having the biggest infotainment screen as premium vehicles seem to do so these days. Reassuringly, Hyundai has listened to both schools of thought it would seem because not only does it have swathes of nappa leather but a dual 12.3inch screen layout. There’s plenty of USB-C charging available along with wireless charging and it features things like a ‘digital centre mirror’ (DCM) and heads up display.
Plentiful ambient lighting continues this marriage of luxury and technology across the interior. Given my take on luxury, I naturally set the hue to purple! No matter your opinion on the aforementioned subjects, hopefully the desire for decent audio is one that can unite the car buying population and luckily, the Palisade ticks that box rather successfully too. This Calligraphy model came with a premium 14-speaker Bose audio system and although that doesn’t sound like nearly enough speakers for the amount of interior room, the system did well to fill the cabin with sound. The Palisade’s unit is definitely one of Bose’s finest works this side of Porsche.
Speaking of magnum opus’, this second generation Palisade arguably features Hyundai’s most advanced implementation of the Hyundai SmartSense safety suite. ‘Blind Spot Collision Avoidance Assist’ and ‘Forward Collision Avoidance Assist’ take urban safety to the next level while ‘Smart Cruise Control’ takes charge on the motorway. The parking aids and cameras are also worth a mention here!
Once inside, the Palisade can be switched on via the additional stalk on the right hand side of the steering wheel, it’s where the gears are also controlled from, freeing up space in the centre console. 245kW of combined power from that 2.5 litre turbocharged four cylinder hybrid powertrain gets this behemoth off the line with ease. 460Nm of combined torque ensures that there’s plenty on tap for overtaking or short bursts or towing for that matter as the Palisade has a braked capacity of 2000kg. The engine and hybrid system are generally quiet for the most part with switching over taking place rather discreetly. Although that’s not a word that can be used to describe the Palisade’s presence as you move through the city. It catches the eye of many, particularly when those statement LEDs turn amber during indication. It’s got presence though, this fact cannot be denied and you are unlikely to see another copycat around so exclusivity is almost guaranteed, another mark of true luxury in my opinion.
Once on the move, the Palisade wafts along with no fuss, it does so rather efficiently too, my time with the car saw it return an average of 7.5-8L/100km! For such a large vehicle, it’s rather easy to maneuver and while it doesn’t handle like something from the Hyundai N stable, it remains composed around most corners. The suspension has been set up rather sweetly so that very little of the road below makes its way into the cabin which benefits from some excellent work in the ‘NVH’ (noise, vibration, harshness) department. For the most part, the suite of safety systems go about their business rather unobtrusively, barring the ‘Driver Attention Warning’ which did irritate me but not to the point where it warranted turning off. Generally, the Palisade offers a comfortable and rather calming drive experience, you can turn up the Bose audio system for some entertainment but that sort of defeats the idea of driving a big luxury barge like this, it’s meant to be an oasis of sorts from the world around you!
The Verdict
If you were expecting the second generation Palisade to be anything but great (particularly in this Calligraphy spec) then you would likely be disappointed. Not only has it successfully pulled off a bold design but it somehow manages to marry traditional luxury with a modern perception of this value. Yes, it’s around $130k for something that wears a Hyundai badge and while that may be a big hurdle for those who remember the Pony, the Palisade is not to be dismissed because it shatters some of the automotive world’s myths about flagship vehicles. Instead, the Palisade chooses to play by its own set of rules, something that Hyundai has excelled at in the last five or so years.
2026 Hyundai Palisade Calligraphy Hybrid: 4.5/5
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Car courtesy of Hyundai Motors New Zealand. Pictures by Harry de Souza, words by Matthew D’Souza.
