Hyundai’s redesigned Palisade sports utility vehicle (SUV) is decidedly more luxurious than the last-generation model. Whether that will help or hurt sales of Hyundai Motor Group’s growing line of electric SUVs or sister company Genesis remains to be seen.

The first pictures of Hyundai’s new Palisade reveal that it has a new, bold grille flanked by LED headlights. Its bold and angular fenders and new wheels look like they’re from a Mercedes-Maybach. The taillights match the front block of lights, and the rear fascia is more decorative from all sides, visually following the Range Rover-like styling.

The new Palisade is larger than the outgoing model, but no official specifications are currently available. In the Korean market, this allows seating for up to nine people thanks to a front center console that folds out to create a seat.

The interior has rich styling and finishes straight out of the Genesis handbook. There are noticeable deep brown materials, warm ambient lighting and a clarity that was not present in the last version. The new Hyundai Palisade features an elongated, curved digital display that doubles as a touchscreen infotainment and digital driver cluster. It also offers multiple wired and wireless charging options.

“However, Palisade’s move further into luxury could complicate lineup dynamics and put pressure on Hyundai’s electric flagship Ioniq 9 and the offerings of the group’s luxury arm, Genesis. How Hyundai balances this internal competition and position while maintaining clear value differences across its products will be key in defining the success of this more premium Palisade.”

At this year’s LA Auto Show, Hyundai unveiled its first three-row electric SUV, the Ioniq 9, which is similar to the Palisade in terms of dimensions and transportation capabilities, albeit significantly less luxurious. The model features different interior and exterior styling than the rest of the Hyundai range, although some technology is shared.

On the other side is Hyundai Motor Group’s luxury Genesis brand and its GV80 three-row SUV. This vehicle has been praised for its ability to stand out even among the Mercedes and BMWs of the show-stopping world, despite its lower power output and lack of track-ready models. The current GV80 features diamond-stitched seats and crystal controls along with a giant 27-inch digital screen. Heated, cooled and massaging seats are available.

Not only does the new Palisade compete with the Ioniq 9 and Genesis GV80, but also the Toyota Grand Highlander, Lexus TX, Chevrolet Tahoe, Jeep Grand Cherokee L, Nissan Armada and Mazda CX-90.

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Hyundai is gearing up for the Ioniq 9 battle

By Eileen Falkenberg-Hull
Editor-in-Chief, Autos

By Eileen Falkenberg-Hull
Editor-in-Chief, Autos

With its new Palisade and Ioniq 9 SUVs due to hit the market around the same time, Hyundai offers buyers options, but those customers will have to choose where their compromise points lie. If they want a smaller interior but zero tailpipe emissions, the Ioniq 9 may be their choice. If they want a higher class interior and don’t mind the lack of battery electric drive, the Palisade might be for them. Either way, if they are kept in the Hyundai ecosystem, the company wins.

Analysts see Hyundai Motor Group’s SUVs as partners, as opposed to vehicles that will be bought across different stores.

“Meanwhile, we doubt it would significantly affect the Genesis crossovers either; these bolder and more distinctive models will coexist with the Palisade much like some Cadillac SUVs are sold alongside their GMC variants.”

The Palisade is already one of Hyundai’s stronger sellers, as is its beefier twin, the Kia Telluride. Sales of Hyundai’s three-row SUV are up 39 percent this year, outselling all but the Elantra and Tucson and nearly tripling sales of the Ioniq 5.