
This month, Hyundai officially unveiled the fully redesigned Palisade in North America, marking the start of its full-scale push into the U.S. market. The new Palisade, which debuted at the New York International Auto Show, now features Hyundai’s next-generation hybrid system, delivering enhanced power output. This move creates direct competition between Hyundai and Toyota in the North American hybrid SUV market.
Toyota has already established its position in the North American SUV market with the Grand Highlander, leveraging its high-output hybrid Max trim to maintain competitiveness. As the 2023 Toyota Grand Highlander approaches its third year in the market, anticipation for a new model is building. Amid this speculation, renderings of a facelifted model have sparked considerable interest in the automotive community.


Rendered Design Showcases a Stylish and Robust Appearance
The virtual renderings of the Grand Highlander facelift reveal an evolution in Toyota’s design language. The front end retains a large grille while incorporating C-shaped daytime running lights (DRLs), reminiscent of those seen on the Camry and Crown, maximizing visual impact. The horizontally separated upper headlamps and DRLs depart from the previous conservative image, emphasizing a more refined aesthetic. Detailed character lines further enhance the overall design.
While it remains uncertain if these design elements will be implemented in the production model, the overall style represents a significant shift, aligning with Toyota’s latest design philosophy. The horizontal DRLs visually connect the lamps at both ends, reinforcing a sophisticated image. Even in rendering form, the design impressively modernizes the robust aesthetic favored by North American consumers.
The rear of the Grand Highlander rendering features full-width taillights and a simple bumper design. The vertically dropped taillights embody Toyota’s traditionally conservative design approach, while the horizontal light bar adds a cohesive element that enhances overall design quality. The rear design reduces unnecessary character lines, focusing on stability and a solid center rather than volume.

Side Profile Emphasizes Clean Lines
North American Hybrid SUV Competition Grows
The side profiles of the two vehicles are distinctly different. While the Palisade emphasizes dynamism with bold character lines and straight wheel arches, the Grand Highlander focuses on practicality with a flat side window design and simplified wheelhouse lines. The roofline maintains a consistent height, emphasizing maximizing interior space. Although both vehicles compete in the midsize SUV segment, they are expected to offer distinct approaches and driving experiences.
The most significant update to the Palisade launched for the North Korean market is replacing the existing 2.5-liter turbocharged gasoline engine with a new 3.5-liter V6, alongside introducing an all-new hybrid lineup. The hybrid model combines a 2.5-liter turbo engine with an electric motor, achieving a total system output of 329 horsepower. Toyota’s Hybrid Max powertrain (362 horsepower) appears more powerful on paper.
However, the Palisade offers a range of strengths beyond performance, including an advanced digital UX, driving assistance features, and premium interior materials. The competition between these two brands will likely be decided by power output and factors like driving feel, interior design, and brand reliability. If the changes shown in the Grand Highlander renderings are implemented, the competition between Hyundai and Toyota will become more intense.