Hyundai Palisade sets annual sales record after North American award

Hyundai Motor’s Palisade, a recent winner of the North American Car, Truck and Utility Vehicle of the Year (NACTOY) award, set a new annual global sales record. The milestone was driven by the launch of the second-generation Palisade, which added a hybrid model capable of traveling more than 1,000 kilometers on a single tank.

Hyundai Motor said on the 3rd that global sales of the Palisade totaled 211,215 units last year, based on IR figures. That was the highest annual total since the model’s debut in November 2018. Sales rose 27.4% from 165,745 units in 2024.

Global exports of the second-generation model, “The All-New Palisade,” launched last year, topped 100,000 units. The milestone came in just eight months, given that full-scale exports of the new Palisade began in May last year, starting with North America. Sales totaled 101,608 units, including 73,574 gasoline models and 28,034 hybrids.

In the U.S., nearly 10,000 hybrid models sold in just four months. The Palisade Hybrid, equipped with a next-generation hybrid system, appears to be emerging as a popular choice in a market where consumers have traditionally favored large vehicles. Demand for hybrids, which offer high fuel efficiency without the need to recharge, is growing in the U.S. following the recent elimination of electric vehicle tax credits.

In South Korea, hybrid sales outpaced gasoline-model sales. Palisade hybrid sales totaled 38,112 last year, nearly 17,000 more than the 21,394 gasoline models sold.

The market sees the next-generation hybrid system, first introduced in the new Palisade, as a key driver of sales growth. Combining the generous interior space characteristic of a large SUV with a hybrid system has maximized the model’s appeal.

Hyundai Motor’s next-generation hybrid system uses two motors. Compared with the previous system, it adds a new P1 motor, which handles starting, power generation and drive assistance, to the P2 drive motor, which provides propulsion and regenerative braking. This improves power and fuel efficiency while enabling smoother shifts and reducing noise and vibration.

The Palisade’s 2.5-liter turbo hybrid powertrain delivers a maximum combined fuel economy of 14.1 km per liter (2WD, seven- and nine-seat models with 18-inch wheels), a system output of 334 horsepower and maximum torque of 46.9 kgf·m. Compared with the 2.5-liter turbo gasoline model, fuel economy is about 45% higher, while peak output and maximum torque are up about 19% and 9%, respectively.

The new Palisade is also 65 millimeters longer and 15 millimeters taller than the previous model, providing more generous headroom and legroom. Second-row seats with a forward-tilting walk-in function and sliding third-row seats make it easier for third-row passengers to get in and out and improve use of the interior space.

For a more comfortable ride, the Palisade is the first Hyundai SUV to feature preview electronic control suspension. Enhanced sound insulation in the first- and second-row door glass also helps deliver a refined driving experience befitting a flagship large SUV.

With its strong product appeal, the Palisade earned 270 points in the 2026 North American Car, Truck and Utility Vehicle of the Year (NACTOY) awards, securing the Utility Vehicle title by a wide margin over the second-place Nissan Leaf (135 points) and third-place Lucid Gravity (85 points).

Global media outlets have also praised the Palisade. Joann Muller, Axios’ transportation correspondent, said, “Available for less than $40,000, the Palisade now offers a new hybrid powertrain, creating a compelling blend of value, technology and efficiency.”

John Vincent, an editor at U.S. News & World Report, said, “The Palisade Hybrid sets a new standard in its class. It’s the best SUV you can buy today.”---