Volkswagen’s full-size SUV, the Atlas, is ready to launch in South Korea. Industry analysts believe it could threaten Hyundai Palisade’s position as the segment’s long-standing leader.
The Atlas combines a large interior with solid performance and is expected to influence the full-size SUV market in Korea.
Bigger, more powerful, and more accommodating
The 2025 Atlas is 5,097 mm (200.7 inches) long, 1,990 mm (78.3 inches) wide, and 1,778 mm (70.0 inches) high, with a wheelbase of 2,980 mm (117.3 inches). These dimensions make it longer and wider than the Hyundai Palisade. The interior can accommodate three rows of seating, and its trunk capacity expands from 582 liters to 2,735 liters (20.6 to 96.8 cubic feet).
The Atlas has a 2.0-liter turbocharged gasoline engine with an 8-speed automatic transmission. It delivers 273 horsepower and 370 Nm (273 lb-ft / 37.7 kg·m) of torque. The fuel efficiency is rated at 8.6 km/L (20.2 mpg) combined, 7.6 km/L (17.9 mpg) in the city, and 10.1 km/L (23.7 mpg) on highways. All-wheel drive comes standard, supporting stable handling in various driving conditions.
Luxurious interior, robust exterior, and packed with features
The Atlas’s exterior features Volkswagen’s rugged yet refined design. The front light bar and rear taillights highlight the brand’s visual identity. Inside, the SUV includes a 12-inch digital display, digital instrument cluster, ventilated and heated front seats, and a three-zone climate control system.
Advanced Driver Assistance Systems (ADAS) are included as standard. These include a 360-degree surround-view camera and adaptive cruise control to enhance safety and convenience.
The Atlas is priced at $38,200 in the U.S. While this is higher than the Palisade’s starting price of $30,000, it is competitively priced based on its premium features and spaciousness.
Mixed consumer reactions: Is the interior a letdown?
Consumer reactions have been mixed. Some praise the Atlas’s exterior design over the Palisade, but others find the interior disappointing. One consumer noted that while maintenance costs may be higher, emotional satisfaction is strong. Another criticized the Palisade’s rising price and interior quality, preferring the Atlas. However, some remain skeptical that the Atlas, which trails the Palisade in U.S. sales, can succeed in Korea.
How the Atlas could reshape the market
Hyundai continues to defend its position with the all-new Palisade. It is 5,060 mm (196.7 inches) long, 1,980 mm (77.8 inches) wide, and 1,805 mm (71.0 inches) high, with a wheelbase of 2,970 mm (117.0 inches). Its Smartstream 2.5-liter turbocharged engine produces 281 horsepower and 430 Nm (317 lb-ft / 43.0 kg·m) of torque.
The Palisade’s interior features a horizontal layout inspired by high-end furniture. It includes power-adjustable second-row seats, Relax Comfort seating and wing-out headrests. Hyundai added features such as an AI assistant, curved display, driver monitoring system, and premium audio system. The Palisade costs between $33,000 and $47,000, making it more affordable than the Atlas. The Atlas is emerging as a direct rival to the Palisade in Korea’s full-size SUV market.
Volkswagen’s aggressive push in the first half of 2024
Volkswagen Korea plans to release one new model each month in the first half of 2024. The schedule starts with the 2025 ID.4 in February, the new Golf in March, and the ID.5 in April. The Atlas will launch in May, and the Golf GTI in June. Through these releases, Volkswagen aims to strengthen its brand presence in Korea.
