The Hyundai Palisade had its best-ever global sales performance in 2025, fueled by the introduction of the redesigned second-generation model.
Official Hyundai Motor Company figures show that the Palisade sold a record-breaking 211,215 worldwide, achieving its highest annual sales to date. That represents a 27.4% increase over the previous year, when Hyundai moved 165,745 Palisade units globally.
The United States was by far the biggest market for the Palisade last year, with a total of 123,929 units, accounting for almost 59% of global Palisade sales. US sales of the Palisade rose 13% compared to 2024, but Hyundai did not reveal the take-up rate for the hybrid version. However, it did say that it sold nearly 10,000 hybrid Palisade SUVs in the US in just four months as consumers preferred high-efficiency hybrids after the recent abolition of the EV federal tax credit.
In South Korea, the second-largest market for the Palisade with a total of 59,506 units sold last year, the hybrid is the top seller with 38,112 units or 64% of total sales. Hyundai said it exported over 100,000 units of the 2026 Palisade from Korea in just eight months of full-scale international availability.
Redesigned 2026 Palisade Hybrid Was A Key Growth Driver
Cole Attisha
The Palisade’s spectacular growth is attributed largely to the second-generation model, for which deliveries started in South Korea in January 2025 and in the US in summer 2025. Besides the larger, more rugged-looking body that results in a significantly roomier cabin, the enhanced interior luxury and tech, and improved off-road AWD capability via the new XRT Pro trim, the 2026 Palisade’s main upgrade is the innovative 2.5-liter turbocharged hybrid powertrain, rated at 329 horsepower and 339 lb-ft of torque.
The hybrid system enables a combined driving range of an estimated 619 miles on a fuel gas tank and up to 34 mpg combined on front-wheel-drive variants.
The Palisade’s next-generation hybrid system utilizes two electric motors integrated directly into the six-speed automatic transmission case. One electric motor handles driving and regenerative braking, while the other assists with startup and power delivery. The hybrid system also includes a 1.65-kWh lithium-ion battery pack, which is charged by the system using regenerative braking and the gas engine.
How Does It Stand Compared To Rivals?
Hyundai
The 2026 Palisade competes in the highly-contested three-row midsize SUV market, with top rivals including the Ford Explorer, Toyota Grand Highlander, Kia Telluride, Honda Pilot, Chevrolet Traverse, Jeep Grand Cherokee L, VW Atlas, and Mazda CX-90.
The Ford Explorer dominated US sales in 2025 with 222,706 units, followed by the Chevy Traverse (148,278 units), Toyota Grand Highlander (136,801 units), and Honda Pilot (124,209 units). The Palisade ranked fifth overall with 123,929 sales, followed by the Kia Telluride sister vehicle with over 123,000 units sold.
The Jeep Grand Cherokee, including the 3-row Grand Cherokee L, posted 210,082 sales, but the automaker does not break down sales by variant. Still, the Grand Cherokee L is estimated to make up around 45% of the total, which would put it at around 95,000 sales for 2025.
