Sangyup Lee, the head of Hyundai global design, speaks about the new Palisade after it was revealed at the 2025 New York International Auto Show on April 16.Mark Richardson/The Globe and Mail
The 2026 Hyundai Palisade that drove onto the stage here at the New York International Auto Show on Wednesday is a little bigger in almost every dimension than the current Palisade and now it comes with a hybrid engine option.
The Palisade was already a large, three-row SUV, but now, its second generation will be 65 millimetres longer, with a wheelbase that’s grown by 70 millimetres. A newly developed, naturally aspirated 3.5-litre V6 engine produces 287 horsepower and 260 lb-ft of torque, with an eight-speed automatic transmission; this is down slightly from the 291 horsepower and 262 lb-ft of the 2025, first-generation model, but should be a little less thirsty in its fuel consumption. It will still be capable of towing 5,000 pounds.
The new hybrid engine will be more powerful, producing 329 horsepower and 339 lb-ft. Hyundai says it hopes for fuel consumption on the highway of seven litres per 100 kilometres – this would be a big improvement over the current Palisade’s 9.7 on the highway. The hybrid’s towing capacity is reduced to 4,000 pounds.
There is also a new off-road edition, for when the whole extended family wants to go exploring. The Palisade XRT Pro has an extra 2.5 centimetres of ground clearance, with 18-inch wheels and all-terrain tires, which help improve the approach and departure angles for hilly terrain. It will only be sold with the standard engine, but it may be fitted later with the hybrid powertrain if there’s a demand for it.
“It’s going to bring all the swagger, the valet is going to park this front and centre,” said Olabisi Boyle, the senior vice-president for product planning at Hyundai Motor North America. “But it’s going to be just as confident with the family in it headed off the beaten path. And while the exterior makes a first impression, the interior will make a lasting impression.”
Relaxation seats that function like recliners will now be available in both the front and centre rows. They became popular with the Hyundai Ioniq 5 as a place to lay back comfortably while waiting for the EV to recharge, but have found a following among those who have to sit and wait in their vehicles for any number of other reasons. As before, the Palisade comes standard with a bench seat for three in the second row that will allow total seating for eight people or a pair of captain’s chairs so the SUV can carry seven people.
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