
The domestic hybrid SUV market is entering a new phase of competition. In the first half of this year, major automakers, including Hyundai, Kia, and KG Mobility (formerly SsangYong), will release new hybrid SUV models.
Once dominated by diesel SUVs, the market is rapidly shifting toward electrification. The most anticipated models include the Hyundai Palisade Hybrid, Kia Seltos Hybrid, and KG Mobility Torres Hybrid, each bringing unique features to an increasingly competitive segment.
Hyundai Palisade Hybrid: Electrifying the Full-Size SUV Market

Hyundai’s flagship SUV, the Palisade, will debut in a hybrid variant. The gasoline model was introduced in January, while the hybrid version is expected to launch in the second quarter.
According to Hyundai insiders, hybrid production at the Ulsan plant will begin in early March, followed by initial production runs and full-scale manufacturing soon after.
The Palisade Hybrid will combine a 2.5L (152 cu in) turbocharged four-cylinder gasoline engine with a 54kW electric motor, producing 334 horsepower. Estimated fuel efficiency is between 13 and 14 km/L (30.6–32.9 mpg). Pricing starts at 49.82 million won (approximately $34,376) and reaches up to 69.36 million won (approximately $47,858) for top-tier trims.
While the Palisade Hybrid offers strong performance and ample interior space, its high price may influence purchasing decisions.
Kia Seltos Hybrid: First Domestic SUV with e-AWD

Kia is preparing to introduce a hybrid-powered Seltos in the second quarter. While the Hyundai Kona has had a hybrid option since 2019, this marks the first hybrid version of the Seltos.
The Seltos Hybrid will be powered by a 1.6L (98 cu in) gasoline hybrid engine, expected to produce 141 horsepower—similar to the systems used in the Avante, Niro, and Kona Hybrid models. It will likely be the first domestic hybrid SUV to feature an electric all-wheel-drive (e-AWD) system.
The Seltos Hybrid is estimated to achieve up to 20.8 km/L (48.9 mpg) in fuel efficiency. Its starting price is in the mid-20 million won range (approximately $13,800). The e-AWD system is expected to significantly enhance both on-road stability and off-road performance compared to conventional hybrid SUVs.
KG Mobility Torres Hybrid: Affordable Pricing with a New Powertrain

KG Mobility is set to launch its first full hybrid SUV, the Torres Hybrid, which will feature a dedicated hybrid powertrain distinct from the existing bi-fuel model.
KG Mobility recently completed environmental certification for the Torres Hybrid, confirming its imminent release. The model will feature a 1.5L (91.5 cu in) turbocharged gasoline engine co-developed with BYD, paired with dual electric motors and an e-CVT transmission.
A KG Mobility spokesperson stated that the Torres Hybrid will operate in electric mode for over 94% of city driving. With a projected starting price in the low-30 million won range (approximately $20,700), it is expected to be highly competitive.
The Hybrid SUV Market Gears Up for Intense Competition

The Hyundai Palisade, Kia Seltos, and KG Mobility Torres Hybrid models are set to launch soon. Each offers distinct performance, efficiency, and pricing advantages. Diesel SUVs’ decline and hybrid powertrains’ growing dominance are becoming increasingly evident. Industry analysts will closely monitor how these new models are received in the coming months.