The 2026 Hyundai Palisade just secured the 2026 MotorWeek Drivers’ Choice Award for Best Large Utility. This win comes as Hyundai launches the second generation of its flagship three-row SUV. The award reflects more than just a fresh face. It highlights a shift in how Hyundai approaches the large utility segment with a mix of V6 power and a new hybrid powertrain.
MotorWeek evaluates vehicles based on driving impressions, reliability, value, and consumer trends. The 2026 Palisade stood out in a field of competitive finalists. This victory coincides with the Chicago Auto Show, a key event for the automotive industry.
New Powertrain Options for the Second Generation
Hyundai updated the mechanical heart of the Palisade for 2026. Buyers now choose between a traditional internal combustion engine and a high-tech hybrid system.
The 3.5-liter V6 Engine
The standard engine is now a 3.5-liter V6. It replaces the outgoing 3.8-liter unit. This new V6 engine produces an estimated 287 horsepower and 260 lb-ft of torque. It uses Gasoline Direct Injection (GDI) to maximize efficiency.
This engine targets a 5,000-pound towing capacity. It provides a familiar driving experience for those who prefer naturally aspirated power. The 8-speed automatic transmission handles gear changes. This setup is available in both front-wheel drive and HTRAC all-wheel drive configurations.
The 2.5-liter Turbo Hybrid
The biggest news for 2026 is the hybrid powertrain. This system pairs a 2.5-liter turbocharged four-cylinder engine with an electric motor. The results are significant.
- Total System Output: 329 horsepower.
- Total System Torque: 339 lb-ft.
- Target Driving Range: Up to 619 miles on a single tank.
- Battery: 300V Lithium-ion system.
The hybrid offers more power and torque than the V6. It uses a next-gen dual-motor system. One motor drives the wheels while the other acts as a generator. This improves regenerative braking and fuel economy.
Design and Interior Refinement
The 2026 Palisade is larger than its predecessor. The wheelbase grew by 2.7 inches. The overall length increased by 2.5 inches. These changes create a more premium silhouette and a more spacious cabin.
First-Class Cabin Experience
Hyundai focused on refinement and proportion. The interior features a Panoramic Curved Display with a 12.3-inch digital cluster.
The new Relaxation Seats are available for both the first and second rows. These seats recline deeply and include deployable leg supports. They aim to reduce fatigue on long trips.
Technology and Convenience
The 2026 model introduces several new tech features:
- Digital Key 2.0 Premium: Use a smartphone or smartwatch to unlock and start the car.
- Built-in Dual-Camera Dash Cam: Records continuously while driving and monitors the car when parked.
- 100-watt USB-C Ports: High-speed charging for laptops and devices.
- UV-C Sterilization: A dedicated compartment in the console to sanitize small items like phones.
The All-New XRT PRO Trim
For drivers seeking off-road capability, the XRT PRO is a new addition. It is more than an appearance package.
| Feature | XRT PRO Specification |
|---|---|
| Ground Clearance | 8.4 inches (+1 inch over standard) |
| Approach Angle | 20.5 degrees |
| Departure Angle | 22.4 degrees |
| Tires | 255/60R18 All-Terrain |
| Rear Differential | Electronic Limited-Slip (eLSD) |
| Recovery Hooks | Functional Canyon Red Hooks |
The XRT PRO also includes specific Terrain Modes for mud, sand, and snow. It features a Surround View Monitor with a forward ground view to help avoid rocks and obstacles.
Safety and Driver Assistance
Safety remains a core focus for the Palisade. The 2026 model comes standard with ten airbags. It also features the latest Hyundai SmartSense suite.
- Forward Collision-Avoidance Assist: Now includes junction turning and crossing support.
- Highway Driving Assist 2: Helps maintain distance and lane position on the highway.
- Blind-Spot View Monitor: Projects a live video feed of the blind spot into the instrument cluster.
- Remote Smart Parking Assist: Allows the driver to move the car in or out of tight spots while standing outside the vehicle.
Market Context and Competition
The large SUV segment is crowded. The 2026 Palisade competes directly with the Toyota Grand Highlander, Honda Pilot, and Ford Explorer.
The Palisade starts at approximately $39,000 USD for the base V6 trim. High-end Calligraphy models with the hybrid powertrain can reach over $61,000 USD.
Competitive Comparison
The Palisade offers a 10-year/100,000-mile powertrain warranty. Most competitors like Ford and Toyota offer 5-year/60,000-mile coverage. This value proposition is a major factor in the MotorWeek win.
The hybrid option also sets it apart. While the Toyota Grand Highlander offers a hybrid, the Palisade targets a higher total range of over 600 miles.
Hyundai Motor Group Investment in the US
The production of the 2026 Palisade is part of a larger strategy. Hyundai Motor Group is investing $26 billion USD in the U.S. from 2025 to 2028.
This investment supports:
- The Hyundai Motor Group Metaplant America in Georgia.
- Upgrades to Hyundai Motor Manufacturing Alabama.
- New R&D facilities.
- Battery production ventures with LG Energy Solution and SK On.
The goal is an annual production capacity of 1.2 million vehicles in the U.S. across the Hyundai, Kia, and Genesis brands.
Final Thoughts on the 2026 Palisade Win
The 2026 MotorWeek Drivers’ Choice Award validates Hyundai's updates to the Palisade. By adding a hybrid powertrain, increasing interior space, and introducing the XRT PRO trim, Hyundai addressed the core needs of the large utility buyer.
The vehicle delivers refinement and tech at a price point that remains accessible. It serves as a practical guide for families looking for a three-row SUV that does not compromise on performance or comfort.
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