Despite tariff pressures from the Trump administration, the highly anticipated new Palisade Hybrid is finally ready for its debut. Hyundai Motor will begin exporting the new Palisade this month, starting in North America, with plans to introduce the vehicle to Australia and China by August.
Industry watchers are particularly interested in whether Hyundai can successfully launch the Palisade in the United States while navigating tariff barriers. The full-size SUV Palisade sells about 100,000 units annually in the U.S., making it its largest market. While Hyundai’s Vietnam plant produced a small number of Palisades last year, most are manufactured in Korea and exported worldwide, including to the U.S., Australia, and China. Starting this year, exports to the U.S. will face a 25% tariff, which could significantly impact the vehicle’s price competitiveness and ultimate success in the market.
Fortunately for Hyundai, no direct competitors in the U.S. market match the Palisade Hybrid’s class. While many three-row SUVs are available in the U.S., the only comparable hybrid model is the Ford Explorer Hybrid. Last year marked the first time internal combustion engine vehicles accounted for less than 80% of total U.S. auto sales.
In contrast, hybrid vehicle sales have grown by double digits each year, surpassing 1 million units. The upcoming Palisade Hybrid is expected to receive praise for its performance, with an estimated range of 1,000 kilometers (621 miles) on a single gas tank, thanks to its advanced parallel hybrid system. Hyundai will also continue to export its existing internal combustion engine models. An industry insider noted, “Despite the potential risks associated with the Trump administration, hybrid vehicle sales continue to increase in the U.S.”
Sales for the new Palisade have already begun in South Korea, generating an enthusiastic response. From January to March this year, cumulative sales reached 10,983 units, an 80.6% increase compared to last year. Upon launch, over 40,000 units were contracted, quickly fulfilling 70% of Hyundai’s domestic sales target of 58,000 units for the year.
To meet the growing demand for the Palisade, Hyundai has decided to expand production beyond its Ulsan Plant 4 to include Plants 2 and 5.
The new Palisade is Hyundai’s first new model in six years. It boasts a bold and grand exterior design that highlights its unique character, a spacious interior based on a length exceeding 5 meters, configurations for 7 and 9 passengers with three-row seating, the first application of next-generation hybrid systems, and advanced safety and convenience features that provide an optimal driving experience—all befitting a flagship large SUV.
A Hyundai representative stated, “The new Palisade will elevate the value of Hyundai’s SUV lineup while providing the ultimate mobility experience.”
