Hyundai is gearing up to launch the next-generation Palisade sooner than expected to meet the rising demand for hybrid vehicles. The new Palisade, codenamed LX3, was originally scheduled for production in January 2025 but has now been moved up to December 2024.
According to reports from the Korean Car Blog, Hyundai plans to produce 210,000 second-generation Palisades annually, a 30% increase from last year’s production targets for the current model. Of these, 70,000 units will be petrol-powered, while the remaining 140,000 units will be hybrids. Notably, there will be no diesel options for the new generation.
The new Palisade is expected to feature a turbocharged 2.5-litre hybrid four-cylinder powertrain and a 3.5-litre turbo V6, moving away from the current diesel and petrol engine options. Reports suggest that there will be two types of hybrid systems available, possibly indicating both conventional and plug-in hybrid variants.
With a significant increase in hybrid SUV sales in Australia and Korea, Hyundai is strategically aligning its production to cater to the growing market. The current Santa Fe received a mid-life update that introduced hybrid powertrains, but the Palisade did not see such changes.
The second-generation Palisade is expected to incorporate Hyundai’s latest software-driven vehicle (SDV) technology, offering wireless over-the-air updates for various systems and a Level 3 autonomous highway driving system.
In 2020, Hyundai sold nearly 4000 Palisades in Australia, trailing behind models like the Santa Fe, Mazda CX-9, and Toyota Kluger. The new Palisade will join the lineup alongside the upcoming electric Ioniq 7, positioning Hyundai strongly in the SUV segment.
