The 2025 New York International Auto Show saw the US debut of the 2026 Hyundai Palisade, which now offers a hybrid option for the first time in the model’s history. Adding a hybrid was one of the few suggestions we had about how Hyundai could improve the Palisade, and it’s clear the South Korean automaker was listening to the media and customers. The 2026 Palisade hybrid will arrive in fall 2025, shortly after the gas-only model goes on sale in the “mid-to-late summer.” However, speaking with Hyundai at NYIAS, the company believes the hybrid will quickly gain a major share of Palisade sales.
Though we don’t know how much the all-electric Hyundai Ioniq 9 will cost yet, its base price will likely start on the higher end of the Palisade’s trim ladder. For families that can’t afford an Ioniq 9 or just aren’t ready to go fully electric, the Palisade Hybrid might be the right product at the right time.
“We know hybrid demand is really strong. We’ve seen it across our other SUVs – Tuscon and Santa Fe – we expect the same from Palisade. I wouldn’t be surprised if it’s over 50% hybrid mix in the Palisade moving forward.”
– Ricky Lao, Director of Product Planning, Hyundai Motor America.
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Benefits Of The Hybrid
The new hybrid powertrain brings multiple benefits over the gas-only V6 model. Output is higher (both in horsepower and torque), and the fuel economy will be superior as well. We don’t have official EPA fuel economy numbers yet, but Hyundai says “we are expecting over 30 mpg combined fuel economy” and over 600 miles on a tank of gas. For reference, the current Palisade only achieves 22 mpg combined in front-wheel-drive guise (21 mpg with AWD) with its 3.8-liter V6 engine.
|
2026 Hyundai Palisade Gas Vs Hybrid |
||||
|---|---|---|---|---|
|
Model |
Engine |
Horsepower |
Torque |
Transmission |
|
Palisade |
3.5-liter V6 |
287 hp |
260 lb-ft |
8-speed automatic |
|
Palisade Hybrid |
2.5-liter Turbo-Four |
329 hp |
339 lb-ft |
6-speed automatic |
“Consumers see the benefits of hybrids, especially families,” Lao explained. “The hybrid produces over 300 horsepower and gets over 30 mpg. That combination is a very compelling point.” This new hybrid system will also find its way under the hood of other Hyundai Motor Group products, including future vehicles from Genesis.
Improving The “Perfect” Palisade
Hyundai did a lot more than add a hybrid powertrain to the Palisade. It looked at every possible way it could make its already outstanding family SUV even better.
“Our Palisade is loved by our customers, and obviously it’s received all these accolades, but we looked and asked, how do we make it bolder and more capable? How do we maximize it for families? How do we get the packaging even better?” Lao told CarBuzz. “We increased the wheelbase by 2.7 inches. Overall length is up by about two and a half inches. But it’s still keeping the size profile that fits in a garage.”
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That modest size increase allowed Hyundai to improve the interior and cargo space. “The Calligraphy trim even has a power option for sliding and reclining in the third row. With the third row all the way back, you have 19 cubic feet of space behind the third row. And if you have small kids in the back, it can go up to 21.7 cubic feet,” he explained. Little improvements like this, and the larger improvement of the hybrid system, should make the 2026 Palisade an instant success.
“I think it’s going to be a big hit with the hybrid,” Lao said.
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