Updated 2023 Hyundai Palisade Leads Hyundai’s SUV Strategy

Hyundai has found success in electric vehicles in recent years, which now make up 14 percent of the brand’s U.S. sales in a market where EV share is around 4 percent. But the automaker’s real success story is found in its SUV product line, which included just two models 5 years ago. Now the company offers seven SUVs, and those models deliver 77 percent of Hyundai’s U.S. sales volume (versus 46 percent in 2018). These models are the driving force behind Hyundai’s growing U.S. market share, which now sits at 5 percent and continues to rise.

Hyundai’s expanded SUV strategy was well under way when the company introduced its three-row Palisade SUV in 2019 as a 2020 model. The Palisade was quickly embraced by consumers, with high satisfaction scores and 70% of Palisade sales ringing in above $45,000 — confirming most buyers are going for the higher trim, highly equipped models. Its 291 horsepower V6, refined driving dynamics, and spacious interior design have impressed family shoppers. The Hyundai Palisade is now the fifth best-selling model in the midsize SUV segment, challenging perennial leaders like the Honda Pilot.

These numbers suggest Hyundai could leave the Palisade alone and still sell every model they build, but conventional product cadence demands a mid-cycle refresh. The Palisade’s arrives for the 2023 model year and features updated exterior styling in the form of a wider, squared-0ff grille, revised LED headlights and taillights, a streamlined rear bumper, and a .7-inch longer front overhang. New wheel designs, a standard integrated tow hitch and auto-dimming side mirrors round out the exterior changes.

The Palisade’s roomy, three-row interior was already a strong selling point, featuring available heated and ventilated seats in the first two rows, plus an optional heated, power-folding third-row seat. The latest Palisade cabin now includes a new dash featuring integrated air vents and an optional larger 12.3-inch digital gauge cluster and standard 12.3-inch central touchscreen. There’s also new ambient interior lighting and upgraded Nappa leather available. The new optional power driver’s seat includes enhanced adjustments and an available massage feature, while the second-row seats now offer “bendable” headrests similar to premium airliner seats.

Mechanical changes to the 2023 Hyundai Palisade are limited to updated programming for the 8-speed transmission to improve “Tow Mode” performance and suspension tuning optimization for a more refined ride quality and high-speed stability. Our experience behind the wheel of the 2023 Palisade confirmed its placid-yet-confident driving experience along the Blue Ridge Parkway in North Carolina, aided by new acoustic-laminated rear glass and increased sound absorption materials. We also appreciated the new digital rearview mirror that uses a camera mounted in the Palisade’s rear spoiler to provide an unobstructed rearview.

The digital rearview mirror is one of several high-tech additions to the 2023 Palisade. Hyundai’s digital key technology, which lets owners use a credit card-sized key or smartphone to unlock and drive the vehicle, has been around for a few years, but now it works with iPhones as well as Android models. This same tech lets owners instantly share (and revoke) the key with others. Hyundai’s remote-controlled parking system, allowing owners to park the vehicle while standing outside of it, has also migrated to the Palisade, as has an upgraded smart cruise control system (”Highway Driving Assist 2”) with more advanced lane change assist and lane placement accuracy.

The 2023 Hyundai Palisade also has a new XRT trim featuring dark 20-inch wheels and exterior trim. It starts at $40,250, about midway between the base SE model ($34,950) and the top trim Calligraphy trim ($48,900). Even the base Palisade SE includes the 12.3-inch touchscreen with navigation, heated front seats, a new 4G WiFi hotspot, and a full complement of driver-assist tech. The $37,950 SEL adds heated and ventilated front and second-row seats, leatherette seat covers, a power sunroof, and a power lift gate.

The XRT adds the dark exterior accents, while the $46,500 Limited trim includes a dual-pane sunroof, leather seats, the power-folding and heated third-row seat, and a new 10-inch heads up display. The Calligraphy model adds Nappa leather, the massaging drivers seat, the upgraded second-row seat headrests, remote smart park assist, the digital rearview mirror and ambient interior lighting.

Hyundai’s success over the past two decades can be traced directly to the value equation the brand has consistently offered, though in the past 10 years the automaker has added attractive styling, advanced technology and engaging driving dynamics, particularly in its N models like the Elantra and Kona. The Hyundai Palisade follows this pattern. From its impressive standard and optional features list to its high-tech capabilities that most competitors can’t match, the brand’s newest SUV was already adding to Hyundai’s success, and that momentum will likely continue with the 2023 updates.