Hyundai unveiled the Palisade in November 2018 at the Los Angeles Auto Show and facelifted its fullsize SUV in April 2022 for the New York Auto Show. A second-generation model being engineered under the "LX3" codename is apparently on the way, according to South Korean outlet ETNews. Mass production is allegedly scheduled to begin in January 2025, representing a two-month delay caused by a reevaluation of the project.

It is believed the next-gen Palisade will move to a different platform that'll bring a longer wheelbase compared to the current model, which measures 196.7 inches (4995 millimeters) between the axles. It would appear that Hyundai will finally electrify its big SUV by offering a 2.5-liter gasoline hybrid powertrain. Stricter emissions regulations are said to force the discontinuation of the 2.2-liter diesel in the markets where the large family vehicle is offered with the CRDi engine.

2023 Hyundai Palisade

ETNews mentions Hyundai intends to drop the naturally aspirated 3.8-liter V6 in favor of a smaller turbocharged 3.5-liter unit. That should translate into a more efficient engine and likely with extra power over the 291 hp and 262 lb-ft (355 Nm) offered today by the GDI engine. The next Palisade is unlikely to offer a purely electric setup since that role will be fulfilled by the upcoming Ioniq 7, previewed by the Seven Concept.

Naturally, the mechanically related Kia Telluride is likely to go through the same changes. Similarly, it probably won't spawn an EV derivative since a zero-emission version would clash with the already-unveiled EV9. The Hyundai Motor Group's luxury division Genesis is working on a posh version of the Ioniq 7 and EV9, likely to be called the GV90.

According to the same report, Hyundai wants to give the new Palisade a Level 3 self-driving system and wide support for over-the-air updates to improve the big SUV post-purchase. Following its Korean launch in early 2025, the three-row family vehicle is rumored to hit the US in June of the same year, potentially as a 2026MY.

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