Hyundai is set to rapidly expand its Palisade lineup in Australia, introducing a more affordable entry-level model and a rugged off-road variant known as the XRT Pro. The moves are designed to boost sales in a competitive large SUV market, offering buyers greater choice and capability.
Entry-Level Elite Model Arriving in 2026
The new Elite trim will arrive in Australian showrooms in March 2026, priced at $76,500 before on-road costs. This represents a significant price reduction of $13,400 compared to the current base model.
The Elite will exclusively feature Hyundai’s new 2.5-liter turbocharged hybrid engine, delivering 245kW of power and 460Nm of torque.
Hybrid and Petrol Powertrain Options
While the hybrid is standard on the Elite, Australian certification documents reveal that non-hybrid versions of the 2.5-liter turbo-petrol engine are also approved for sale. These models will produce 207kW and 422Nm, paired with an eight-speed automatic transmission.
The non-hybrid versions will be available in both front-wheel drive and all-wheel drive configurations, with a slightly higher braked towing capacity of 2200kg compared to the hybrid’s 2000kg.
The Rugged XRT Pro Variant
Hyundai is also preparing to launch the XRT Pro, a more off-road focused version of the Palisade. This model debuted at the 2025 New York motor show and features exclusive styling and equipment enhancements for improved off-road capability.
The XRT Pro will come standard with all-wheel drive, and Australian specifications may include the non-hybrid 2.5-liter turbo-petrol engine.
XRT Pro Features: Enhanced Off-Road Capability
The XRT Pro boasts a range of off-road features, including:
- Increased Ground Clearance: 8.4 inches (~213mm), 1 inch higher than standard models.
- Improved Angles: Approach, departure, and breakover angles optimized for rough terrain.
- All-Terrain Tires: 255/60 R18 all-terrain tires for superior grip.
- Terrain Modes: Mud, Sand, and Snow settings for optimized performance in various conditions.
- Recovery Hooks: Exposed Canyon Red recovery hooks for self-extraction.
Market Context and Sales Performance
The second-generation Hyundai Palisade launched in Australia in November 2025, initially only in the high-grade Calligraphy trim. In 2025, the Palisade achieved 2364 sales, though this was down 22.8% from the previous year.
Expanding the lineup with the Elite and XRT Pro variants is expected to reignite sales momentum by catering to a wider range of buyers.
Hyundai’s aggressive expansion of the Palisade range demonstrates its commitment to competing in the large SUV segment. The addition of more affordable and off-road capable models will likely attract a broader customer base, solidifying the Palisade’s position in the Australian market.
