Australians are crazy for large SUVs. But, is the refreshed Hyundai Palisade enough to tempt buyers from new rivals such as the Mazda CX-90, Nissan Pathfinder, and Ford Everest?

The pre-update Hyundai Palisade arrived in Australia rather belatedly – around three-years after its launch overseas. While it’s designed for the American market, it quickly became a sight on our local roads. But, it never looked attractive enough in my opinion with its shrinking pug face.

Enter the facelifted Palisade. It brings its design in line with the latest Tucson SUV, adds more safety tech, and debuts the Hyundai Bluelink internet-connected services and smartphone app to Australia (finally).

Does the update make it a worthy contender if you’re looking for a more upmarket large three-row family SUV? Well, yes with one key caveat…

EDITOR’S NOTE: The test vehicle was provided by Hyundai Australia for a seven-day independent evaluation. No copy approval was given before publication and we have no commercial arrangements with the company.

Car as tested:

Model	2023 Hyundai Palisade
Variant	Highlander
Starting price	$79,900 before on-road costs
Exterior colour	Robust Emerald
Interior colour	Black/Dark Khaki Nappa leather
Options	2.2 diesel engine + seven-seat layout
Country made	South Korea

Design.

The updated Hyundai Palisade has a markedly improved design than its predecessor – it has pushed it more into luxury SUV territory.

Even though most changes are limited to the front, it is a bolder step up with a larger grille boasting segmented satin chrome blocks (or black on the base Elite model), hidden LED indicators at the top, and a thick LED daytime running light that drops down vertically this time around.

This Highlander’s 20-inch turbine-style alloy wheels with knurled centre caps and our tester’s Robust Emerald exterior colour shimmers dark green under the sun (while being discreet in the dark) also give a more upmarket appearance. I suspect that the same design team was also tasked with the strikingly similar Genesis Electrified G80 electric limousine…

But, changes at the back are fairly limited to a tweaked lower bumper, full-width LED brake light, and hidden LED light streaks beside the tail-light clusters. There’s still no hiding its long 4995mm side profile and tall 1750mm height that’s apt for its American focus giving off a cool gangster-like Cadillac design vibe.

Inside, the three-row large SUV continues the upmarket Genesis-like theme with a thick and plush suede headliner and sun visors, plus a no-cost optional two-tone Nappa leather interior with seat and door quilting (which extends to the rear seats).

Our tester was fitted with Black/Dark Khaki, with the latter being so dark that it looked black at without glancing closely under the sunlight. Unfortunately, the two-tone interior is only available on select exterior colours and the available cabin colour combination varies colour-by-colour.

While the standard black interior is most practical to keep clean, it does unfortunately feature gloss black trim on the upper dashboard and doors, instead of a wood finish on the two-tone interiors. The Black/Dark Khaki is therefore a good compromise.

Overall material quality is business class-like, but there are still signs that it still has a Hyundai badge – the light wood trim looks good, yet doesn’t feel as real, and the textured ‘diamond pattern’ silver plastics doesn’t feel particularly premium.

Also missing is any sort of cabin ambient lighting, which is surprising given its $80,000 price tag.

Practicality.

2023 Hyundai Palisade Highlander 2.2D dimensions:

Length	4995mm
Width	1975mm
Height	1750mm
Wheelbase	2900mm
Ground clearance	203mm
Cargo capacity (minimum)	311-litres
Cargo capacity (third-row folded)	704-litres
Rear seat split fold (third-row)	60:40
Child seat anchors	3x ISOFIX child seat anchors (second-row and left third-row seat) + 4x top-tethers (all second-row and third-row left and centre seats)

The Hyundai Palisade offers a decent 311-litres of cargo space when all three-rows are in place, which is quite usable with a bag hook offered at the back of the right-side seat.

It expands to a capacious 704-litres once the third-row is folded down and even gets larger to 1297-litres thanks to the second–row captains chairs being able to fold completely flat with no gaping hole in the middle when slid in the most rearward position.

Unfortunately, I wish there were more sturdy bag hooks other than the one offered at the back of the right-side third-row seat, with the hooks on each side being too narrow to hook any item thicker than string. There is a luggage net included to secure items when the third-row seats are folded, though it can be a fuss to attach/detach if you’re regularly using the third-row.

Thankfully, the cargo cover (which can only be attached when the third-row is folded) can be easily stored thanks to a dedicated slot underneath the boot floor – as opposed to the Hyundai Santa Fe.

Note: The previous loaner of this vehicle attached the second-row headrests backwards and has subsequently been locked.

The third-row is folded down via pulling and pushing the velcroed latch, plus there’s handy buttons at the boot for folding the second-row, LED illumination, and a 12-volt power socket. However, once the third-row seats are folded, the wheel arch cup holders and seatbelts can get in the way if you need to fit wider items.

As for the Palisade’s third-row seats, it’s easy to get in and out thanks to our tester’s no-cost optional seven-seater captain’s chairs arrangement allowing passengers to simply walk through the middle to the back. Alternatively, there’s a button on the left kerb-side to spring forward the second-row seat.

All four doors extend to cover the side sills, meaning they don’t collect dust on the bodywork to avoid making your pants or legs dirty while ingress/egress.

Unlike its Hyundai Santa Fe SUV counterpart, the third-row has complete airbag coverage, with more head space and it has an ISOFIX child seat anchor point on the outer-left seat.

But, legroom still remains tight, the floor is naturally higher being at the rear axle (resulting in perched knees), and three adults abreast will be a squeeze.

Two cup holders are on each side, alongside a USB-C charging port, but it’s a hard plastic material that isn’t comfortable to use as an armrest.

There’s also coach-style ceiling-mounted air vents on each side of the third- and second-row, which feels more effective than blowing directly onto the face thanks to direct or disperse air modes. They can all be controlled via the physical buttons at the middle-row centre console or via the front as part of the large SUV’s three-zone climate control system.

Additionally, the second-row is far more palatial thanks to the captain’s chairs, which are essentially replicated front individual seats with a dedicated adjustable middle armrest and ‘winged’ hugging headrests.

If you don’t need an eight-seater SUV, I’d recommend this configuration as it lifts its perceived premium interior, too.

Middle passengers are treated to spacious leg and headroom, with enough space to stretch your feet underneath the front seats. The captain’s seat rails impressively boast lots of lateral (forwards/backwards) and recline manual adjustment.

I also commend the inclusion of two accessible cup holders beside the door armrests, alongside nets beside the seat and the front seatback to tuck a smartphone, for example.

Note: The previous loaner of this vehicle attached the second-row headrests backwards and has subsequently been locked.

Other amenities include: built-in manually retracting window sunshades; USB-C charging ports beside each front passenger seat; a single 12-volt socket; LED illumination; and three-stage heating and ventilation functions (which is still available on the outer seats of the eight-seater’s middle bench).

As per big family haulers, there’s two separate glass roofs – the rear being larger than the front, but only the front can be opened. Both can be covered by an electrically retracting thick suede sunshade.

However, it’s an inconvenience that the rear glass roof sunshade can’t be opened/closed by rear passengers – it must be operated via the front overhead buttons.

The Hyundai Palisade’s second-row is impressive for an SUV priced under six-figures. Though, the only element that’s missing is a tray table.

The quilted Nappa leather, wood trim and stainless-steel speaker grilles continue up the front, where the silver textured centre console is home to a stack of physical buttons and dials, and the side of the touchscreen bezel clearly indicates the seatbelt status of all seats.

Most impressive is a spacious lidded centre storage area with pop in/out cup holders that can liberate more space to store larger items like a camera, plus a 15-watt Qi wireless charging pad and an USB-A data/charging port.

That’s in addition to an open storage area underneath the console with USB-C and 12-volt power sockets (which finally has its own illumination lights – a key gripe of the Kia EV6 electric car), a large centre armrest that hides a deep felt-lined cubby with another USB-C and 12-volt socket duo and small tray atop, and a decent-sized glovebox.

Any downsides? All four side door pockets aren’t wide enough to hold large hard bottles, the front passenger is strangely missing a roof grab handle, and the light-coloured suede headliner can get dirty quickly while showing every single hand streak.

There’s also a dedicated pop-down rear-view mirror for looking at rear passengers, but it’s a bit too slim to easily view.

The Nappa leather seats are comfortable and the front pews also benefit from heating and ventilation with electric adjustment.

Technology.

2023 Hyundai Palisade Highlander 2.2D tech features:

12.3-inch touchscreen with built-in maps	12.3-inch driver instrument display
Wired Apple CarPlay and wired Android Auto	Keyless entry with remote engine start and push button start
Bluelink connected services and mobile app	Remote smart parking assist (forward/reverse)
12-speaker Infinity premium audio	10-inch head-up display
Camera-based digital rear view mirror

The South Korean company’s flagship SUV features a 12.3-inch touchscreen and 12.3-inch instrument display running the Hyundai Motor Group’s own operating system, with wired Apple CarPlay and wired Android Auto via an USB-A port.

Although the screens are clear with a reasonably modern-looking user interface, I did notice the Palisade seems to use a slower processor – the animations when switching between drive modes look laggy and there’s a noticeable delay in going into an app or menu within the infotainment compared to other models, such as the Hyundai i30 Sedan N.

It is at odds with this facelift, which is heralded as ‘high-tech’ by (finally) debuting Hyundai Bluelink connected services in Australia.

It embeds a SIM card in the vehicle to bring internet-connected services to the touchscreen, including checking the weather, syncing calendars, and built-in voice control. The latter doesn’t use natural language commands and is quite unreliable (saying ‘increase the temperature’ zealously results in six-degrees hotter and heated seats activating).

The key highlight is the connected Bluelink smartphone application, which allows owners to monitor the vehicle status, turn on the engine, set the air-conditioning temperature, adjust the heated/ventilation on all four seats, open/close/vent windows, send navigation directions, and even turn on the panic alarm remotely – without needing to be close to the vehicle.

I most liked the ability to take a still photo from all four 360-degree stitched cameras and see each view in the phone itself. It does take some time (plus unfolds the mirrors and briefly flashes the lights) and uses the 12-volt battery in the process, but it’s great that the cameras are put to better use (if you’re like me constantly paranoid about nearby parked cars).

The Bluelink app even sends reminder notifications about leaving the lights on while parked (and handily provides a button to turn it off remotely), having windows open while the doors are locked, and idling the engine for long periods.

Although it can take some time to send and receive commands, Bluelink is a welcome addition and is quite well-featured.

Furthermore, the touchscreen features a Passenger Talk function to pipe the front microphones to the rear speakers. The steering wheel favourites button can be programmed to toggle it on without diving into the screen, which wasn’t available on the Hyundai Santa Fe Hybrid I tested.

There are physical climate control buttons at the centre stack with a clear dedicated LED display panel (as opposed to the Santa Fe), which can also control the rear air vents.

The digital instrument display is clear with an analogue dial design and the heads-up display clearly projects the speed readout and road signs onto the windscreen.

It also boasts a 12-speaker Infinity audio setup, which was decent but didn’t sound outstanding to my admittedly non-audiophile ears.

Safety.

2023 Hyundai Palisade Highlander 2.2D safety features:

Front auto emergency braking (AEB) with vehicle/pedestrian/cyclist/intersection detection	Adaptive cruise control with overtake acceleration assist
Rear AEB	Safe exit assist
Blind-spot assist with blind-spot view camera	Driver attention monitoring
Rear cross-traffic assist	360-degree camera
Lane keep and centring assist	Front and rear parking sensors
Road sign recognition with speed limit assist	Reverse guide light ground projection

The Hyundai Palisade has received five-star ANCAP safety rating from the 2022 criteria, which is a step up from the pre-update since a front centre airbag and improved safety assistance technologies have now been added.

The South Korean SUV utilises a front camera and radar sensor to power a comprehensive active safety assistance suite as standard, including lane centring assist that works without needing to enable the adaptive cruise control, front auto emergency braking (AEB) now with intersection detection, multi-collision braking, and reverse AEB.

This top-spec Highlander model also benefits from a clear 360-degree camera – which should really be standard-fit for such a large SUV – blind-spot view cameras, and projects guideline lights on the ground a night while reversing that’s usually a hallmark of a Genesis product (though, ironically, be careful that children like to step on them).

Furthermore, it’s the first Hyundai model in Australia to debut a new road sign recognition and stricter speed limit assist system, following European regulations.

The camera scans road signs effectively in any lighting condition (including no entry, stop and school zone signs), but once the speedometer gets just a touch above the recognised limit, it activates several warning chimes.

Also, every time there’s a road sign detected (regardless of whether the speed limit remains the same), the Palisade voices a light chime.

While it is actually useful at reminding and encouraging drivers to stick to the legal speed limit (just to avoid the chimes and save yourself from being an embarrassment to your passengers), it is annoying – particularly travelling through school zones since the car doesn’t know that there’s a time limit.

I got quite used to it during the week (like hearing some chimes on an aeroplane), but I wish there was some leeway as travelling at GPS speed habitually triggers the chimes.

Thankfully, it can be turned off. But, you’ll need to dive into the settings every time you start the car and it also deactivates displaying the handy road sign recognition icons in the instruments and heads-up display.

The Palisade Highlander also features a camera-based digital rear view mirror, which activates with a flick and has a wider-angle view than the conventional glass mirror (stretching at least two lanes across the road).

Naturally, it does take some time for eyes to adjust the focus onto the screen and night-time camera performance isn’t as good with glaring headlights, but it can be quite useful if there are third-row passengers or the boot is stuffed to the roof.

The Bluelink connectivity also enables automatic emergency services calling in the event of the airbags being deployed or manually via a red button at the front overhead switches – an underrated critical safety feature.

The large family SUV includes large and bright LED headlights with good spread and reach at night and an auto high beam function, even though there’s no adaptive pixel technology here.

Range and fuel consumption.

2023 Hyundai Palisade Highlander 2.2D fuel and efficiency specs:

Claimed driving range	973km
Claimed fuel efficiency (combined)	7.3L/100km
Fuel tank	71-litres
Minimum fuel quality requirement	Diesel
Claimed carbon dioxide emissions (combined)	193g/km
European emissions compliance	Euro 5

Our Hyundai Palisade tester was fitted with a $4000 optional 2.2-litre four-cylinder diesel engine with on-demand all-wheel drive – which is the pick for regular long-distance drivers.

After a week of driving a mix of urban and highway environments, the Palisade indicated a real-world fuel consumption of 10.0L/100km, meaning 710km of driving range from a full tank. It’s a wide gap compared to the claims, but is still respectable given its size.

Unfortunately, the Palisade is only Euro 5 compliant and harmful and hazardous diesel exhaust fumes, including nitrogen oxides, are apparent – even when not directly standing at the back of the SUV. In one instance, I turned on the engine via remote start and could smell the fumes emnating from the driveway into the (closed) garage.

In 2023, the Hyundai Palisade should be offered with a petrol-hybrid option like the Santa Fe Hybrid, as an urban-focussed family SUV (though it’s unlikely). It would help it reduce local exhaust emissions, while improving its fuel efficiency.

Keep in mind that the diesel also requires regularly driving on highways to burn the diesel particulate filter matter away.

Yes, diesels are still the best choice today for towing and long range, especially for commercial vehicles that constantly drive long distances across our vast land everyday.

But, it isn’t suited to a family SUV driving mainly in urban or suburban areas – unless you’re constantly on long road trips.

On the other hand, the standard 3.8-litre six-cylinder petrol engine is only two-wheel drive and has a claimed fuel consumption of 10.7L/100km (expect it to be higher in the real-world).

The diesel is superior on paper; however, for many families, it is unnecessary – the petrol engine is enough, albeit at the expense of higher fuel consumption and lack of an all-wheel drive safety net.

Driving.

2023 Hyundai Palisade Highlander 2.2D powertrain specs:

Engine	2.2-litre four-cylinder in-line diesel engine
Power	147kW @3800rpm
Torque	440Nm @1750-2750rpm
Transmission	Eight-speed torque converter automatic
Drive Type	AWD (4×4 on-demand)
Claimed 0-100km/h time	N/A
Towing (unbraked/braked)	750 / 2200kg

The Hyundai Palisade brings the hallmarks of a traditional large SUV with a high seating position and window line aligned with other body-on-frame utes and ute-based SUVs, plus a grunty diesel to match.

Stepping in from the Santa Fe, I was surprised at the noticeable difference in ride height and mass.

The diesel engine provides enough power to move the two-tonne large SUV with high torque outputs at low revs, even though it isn’t ‘instant’ with the eight-speed automatic transmission needing to take some time before it launches off the line or shift down gears while on the move.

The standard petrol powerplant has identical towing capabilities, though the diesel can naturally pull better on paper with all-wheel drive.

At times, the Palisade does feel like driving a minibus with a compliant soft suspension, light steering that’s numb in the centre centre, longer brake pedal travel, and the whole body slightly wallows when coming to a stop due to its higher centre of gravity.

The ride is comfortable and mostly quiet at suppressing outside noises, including the less refined grating diesel engine. But, there was some noticeable wind buffeting noise around the driver’s side wing mirror when travelling at high speeds.

Additionally, the Palisade benefits from good all-round visibility, with a glass opening between the A-pillars and wing mirrors, and large rear window thanks to the boxy design.

Although it is quite a long and wide SUV, it isn’t too awkward to manoeuvre with a respectable 11.8-metre turning circle.

Ownership.

The Hyundai Palisade SUV is covered by a five year, unlimited kilometre vehicle warranty.

It benefits from a rarely seen unlimited capped-price servicing scheme and unlimited roadside assistance services renewed 12 months every time you service it with Hyundai.

Bluelink connectivity is included for the first five years of the vehicle and will need to be be paid to renew thereafter (for an undisclosed fee as at the time of writing).

Both the petrol and diesel powerplants require servicing every 12 months/15,000km. A free 1.2 month/1500km initial service is also required. After the first five visits, it will cost $2445 to maintain.

All models include a full-size spare tyre, though it’s harder to access since it’s underneath the vehicle.

2023 Hyundai Palisade Highlander 2.2D capped-price servicing prices:

12 months/15,000km	24 months/30,000km	36 months/45,000km	48 months/60,000km	60 months/72,000km
$489	$489	$489	$489	$489

Rivals.

The Hyundai Palisade directly competes with the forthcoming Mazda CX-90 upmarket seven-seat SUV (from $74,385 before on-road costs).

The new-generation Nissan Pathfinder (from $71,490 before on-roads) has a similar American-orientated SUV design and comes with eight seats as standard.

The venerable seven-seat Toyota Kluger (from $51,120 before on-roads) benefits from a lower starting price and the option for an emissions-cutting and fuel-efficient series-parallel hybrid powertrain.

Meanwhile, the new Ford Everest (from $60,590 before on-roads for a seven-seater) caters to those who really need better off-roading capabilities with a body-on-frame platform and traditional turbocharged petrol and diesel engines.

The Kia Carnival people mover van (from $51,690 before on roads) is an alternative worth considering, as a more affordable entry point to get eight seats with a longer warranty, similar technology setup, and the same engine options as per the Palisade.

---

Would I pick the 2023 Hyundai Palisade Highlander 2.2D?

It’s worth considering the Hyundai Palisade if you’re looking for a practical, large and upmarket three-row family SUV – without a six-figure price tag.

The facelift brings a much-needed bolder freshen-up, with new tech and safety assist systems that have now afforded it to gain the maximum five-star ANCAP rating.

This top-spec Highlander model is my pick since it crucially gains a 360-degree camera and rear AEB that should really be standard given its size. I’d also choose the seven-seat captain’s chairs configuration, but would go for the inferior petrol instead.

For those who only use the third-row occasionally, the smaller Hyundai Santa Fe is a better choice that balances interior space and manoeuvrability, particularly in tight urban car parks.

Unfortunately, its traditional engines aren’t fitting for this otherwise premium modern-day family SUV. You’d really need to be regularly driving long distances to opt for this $4000 optional diesel engine.

The tide is turning quickly (or arguably has already turned) for this old-hat powerplant, which produces harmful pollutants that no family should breathe in.

For an urban-focussed family SUV in 2023, it really deserves a hybrid option to cut on local exhaust emissions and improve fuel efficiency, even though it’s quite unlikely.

Nonetheless, the updated Palisade does set a good precedent for the upcoming Hyundai Ioniq 7 large all-electric SUV. We’ve already seen the Kia EV9 evolve the best Palisade traits for the electric era and I can’t wait to see how it will move forward unnecessarily large diesel-obsessed SUV markets, such as Australia.

Photographs by Henry Man

---