Hyundai is doing great across the US automotive market – last year, its subsidiary Hyundai Motor America had record-breaking fourth-quarter, December, and 2023 sales. Rising 11%, the delivery total was of more than 801k vehicles and some nameplates, including Tucson and Santa Fe PHEV, plus the flagship Palisade attained total monthly sales records.
Interestingly, the Santa Fe deliveries were up 10% during the final year of sales before switching to an all-new, completely different generation. In fact, the bold MX5 fifth-generation Santa Fe was just announced to start from $34k in America with standard three-row seating, a 2.5-liter turbo powertrain, and an optional hybrid variant.
The 2024 Hyundai Santa Fe is arriving across nationwide dealerships with the base 2.5-liter turbocharged mill, which is actually a lot more powerful than the hybrid variant – it offers 277 horsepower compared to the 1.6-liter hybrid variant that boasts 'just' 231 combined horsepower. Also, the latter will reach its first clients a little later because deliveries start later this spring. Anyway, now, with the larger all-new Santa Fe packing standard three-row seating, it kind of infringes on Palisade's domain, right?
No worries, as Hyundai is also preparing something new for the latter. As such, our spy photographer partners have caught the first glimpses of the upcoming second-generation Palisade that's probably coming next year as a 2026 offering. Hyundai originally introduced the nameplate at the 2018 Los Angeles Auto Show and recently went through the mid-cycle update for the 2023 model year. It still looks fresh and inviting, but as shown with the Santa Fe, Hyundai has already adopted a fresh styling philosophy.
As such, given how both the Santa Fe and Palisade are mid-size crossover SUVs, it would be logical to try and separate them a little – if not in terms of design, at least regarding the size and market positioning. For example, if we look at the spy photos, we can immediately see that Hyundai is carrying over the new rugged styling from Santa Fe to Palisade. As such, the differentiators remain the CUV's dimensions and the potential flagship positioning.
If you're curious and can't wait for the official reveal that's probably at least a year away, the Halo oto channel on YouTube provides fresh automotive info corroborated with their virtual designs; now, there are some new CGI ideas about the next Palisade. According to their pixel master, the potential second-generation CUV will be slightly larger, boxier, and much more ritzier than the Santa Fe.
So, do you think Hyundai will go in that direction and make Santa Fe the adventurous family-oriented CUV and the Palisade a near-premium offering, or not? Also, do you think the channel's host is right thinking that Hyundai's next Palisade iteration will also feature the same powertrain options as the 2024 Santa Fe?
Aurel has aimed high all his life (literally, at 16 he was flying gliders all by himself) so in 2006 he switched careers and got hired as a writer at his favorite magazine. Since then, his work has been published both by print and online outlets, most recently right here, on autoevolution. Full profile
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