It’s time to upgrade one of the most popular three-row midsize SUVs. The 2025 Hyundai Palisade brings styling upgrades and a second powertrain.
Since it arrived in the market, the Palisade has only been offered with one powertrain. This is a 3.8-liter V6 engine, but the movement toward hybrid powertrains means the pressure is on for Hyundai to add a hybrid of its own. While it’s unclear how much power to expect from a hybrid powertrain, this new addition pushes out the diesel engine that’s been offered in foreign markets but not in the United States.
More power, more efficiency, just more
A hybrid powertrain is big news for the Palisade. This SUV has chugged along with a naturally aspirated setup in our market for a few years. The current 3.8-liter V6 is a bit outdated and unrefined, which makes room for a new 3.5-liter turbocharged V6 to replace the outgoing larger V6. The new hybrid powertrain could bring a 2.5-liter 4-cylinder engine as the starting point, with at least one electric motor aiding in the drive of this new SUV. There could be as many as three electric motors, but that might be taking things a little too far for now.
Hyundai promises significant design changes, but not much more
Recently, Hyundai upgraded the Santa Fe to give it new styling and seven seats. That sounds like it should compete against the new 2025 Hyundai Palisade for a place in the market, but Hyundai executives think differently.
Some Hyundai execs, specifically Olabisi Boyle, vice president of product planning, are excited enough about this new model that they nearly spilled the beans regarding the upgraded style. Boyle did tell CarBuzz that the brand is “designing them for each segment space that’s appropriate,” which means the Santa Fe will continue to be a midsize SUV that plays in the market below the new Palisade.
Hyundai success with the Palisade
The Palisade hit the market in 2018, which is when the Santa Fe XL left the market for good. This new, large three-row SUV was an instant hit, achieving 80,000 units sold each year since 2020. Hyundai upgraded the styling in 2022 and now it’s time for a new model to hit the roads. The 2025 Hyundai Palisade will be the start of a new generation, giving this impressive SUV a second chance at pleasing customers, which it’s been capable of doing since it arrived on the scene.
Will the new Palisade include an upgraded transmission?
The current transmission in the Palisade’s powertrain is an 8-speed automatic unit. Will the change to smaller engines, one being a hybrid, bring about new transmissions, or will Hyundai stick with the 8-speed model? We don’t expect this new Palisade to use a 10-speed automatic transmission, but it’s not out of the realm of possibility. Likely, the hybrid system will either use a 6-speed automatic transmission or a CVT, while the new turbocharged V6 should continue to utilize an 8-speed shifter.
Does this mean the Kia Telluride is changing?
Since they arrived, the Palisade and Telluride have shared a platform, the only difference being the styling offered in each SUV. The marriage of these two models indicates that when the 2025 Hyundai Palisade receives its new changes and generational updates, the 2025 Kia Telluride will as well. This shouldn’t be too difficult for most consumers to understand. It won’t be long before we see the upgrades and learn more about the Hyundai and Kia three-row midsize SUVs.
Will the Palisade offer an electric powertrain?
If Hyundai transitions the Palisade from a 3.8-liter engine to a smaller turbocharged engine and a hybrid system, will an all-electric version come next? It’s highly unlikely the Palisade will ever be sold as an EV. The same goes for the Kia Telluride. Kia and Hyundai have electric platforms and an entire lineup of electric vehicles in the current market. The Hyundai Ioniq 7 and Kia EV9 are both fully electric and have three rows of seats. These two midsize EV SUVs fill the space where an electric Palisade or Telluride might be.
The new 2025 Hyundai Palisade has us talking, and the Hyundai team is excited. This new three-row SUV brings more power, more style, and more efficiency to the market. This SUV is a big hit and should continue to enjoy success with the new build and setup.
Will you wait to see what this new three-row Hyundai SUV brings to the market? It could easily be worth the wait.
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