Hybrid version of next-gen Hyundai Palisade (U.S.-bound) delivers 48% higher mpg

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While sales of the gas-powered second-generation Hyundai Palisade commenced in South Korea earlier this year, the company is nearing the start of production of the first-ever Palisade Hybrid which is expected at Korean Hyundai dealers during the second quarter.

Hyundai employs an all-new TMED-II powertrain in the next-gen Hyundai Palisade Hybrid, combining a 2.5-liter turbocharged gas engine with an electric motor. The former produces 262 PS (258 hp) and 36.0 kgf·m (260 lb.-ft.) of torque, while the latter generates 54 kW (72 hp) and 264 Nm (195 lb.-ft.) of torque.

In total, the all-new hybrid system produces 334 PS (329 hp) of power, which a 6-speed automatic transmission transfers to the front wheels by default. Hyundai does give an all-wheel drive drivetrain layout option, though, choosing which directs some of the power to the rear wheels for added traction and improved all-weather capability.

Since the launch in 2018, the Palisade nameplate has sold over 900,000 units globally. It set a new Q1 record in 2025 in the U.S., with 26,235 sales. Image: Hyundai

Depending on the configuration, including the wheel size and drivetrain layout, the new Palisade Hybrid returns a fuel economy of 11.4 km/l (26.8 mpg) to 14.1 km/l (33.2 mpg) in South Korea. The new hybrid SUV has a 72-liter (19-gallon) gas tank, which means it could travel anywhere between 821 and 1,015 km (510-631 miles) before needing a gas station.

Compared to the gas-powered new Palisade, which returns between 8.2 and 9.7 km/l (19.3-22.8 mpg), the new Palisade Hybrid is as much as 72% more fuel efficient, and when compared by variant, it is up to 48% more fuel efficient. The fuel economy figures according to EPA will be different, but the South Korean numbers offer a compelling indication of what’s to come.

Variant Drive Tires Seating Hybrid (mpg) Gasoline (mpg) Efficiency Gain (%)
Standard 2WD 18″ 7/9 33.2 22.8 +45.6%
With Built-in Cam 2WD 18″ 7/9 32.7 22.1 +48.0%
Standard 2WD 20″ 7/9 29.9 21.2 +41.0%
Standard 2WD 21″ 7/9 29.4 20.5 +43.4%
Standard AWD 18″ 7/9 29.4 20.5 +43.4%
Standard AWD 20″ 7/9 26.8 19.3 +38.9%
Standard AWD 21″ 7/9 26.8 19.3 +38.9%
NET (New Energy Test) figures; The numbers are from South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT), as published on the Hyundai Palisade Hybrid’s catalog, converted to mpg.

The electric motor allows Hyundai to offer several additional functions in the 2026 Palisade Hybrid, such as E-Ride, E-Handling, E-HA (Electrically Evasive Handling Assist), and e-DTVC (Electric Assisted Dynamic Torque Vectoring Control). The hybrid SUV boasts a vehicle-to-load (V2L) bi-directional charging capability as well. Supplying energy to its ancillary drive unit is a 1.65 kWh lithium-ion battery pack, which operates at 300 volts.

2026 Hyundai Palisade dashboard driver side South Korea
The second-generation Hyundai Palisade receives a complete makeover, with features like an island-type center console, 12.3-inch screens, and a 14-speaker audio system. Image: Hyundai

Hyundai does not reveal the EV-only range, but it does mention the availability of a special Stay Mode that allows the driver to conserve the battery charge for later use.

We expect Hyundai to offer details on the next-gen Palisade’s U.S. arrival later this year. The gas and hybrid versions are expected for MY2026 in America. You can refer to our earlier article that summarizes everything new in the Palisade Hybrid.

Featured image: Hyundai

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