The Hyundai Palisade has beat out a strong line-up of competitors to win the Best Seven-Seat Under $90K category in the Drive Car of the Year 2026 awards.
The Hyundai Palisade has won the Best Seven-Seat Under $90K category in the Drive Car of the Year 2026 awards, taking the title off the Hyundai Santa Fe.
The seven-seat segment is where Australian families look for the all-in-one package. Whether you need a third row full-time, or just every now and then, they provide flexibility, practicality and space in spades, in a way that medium SUVs with a 5+2 setup can't.
The number of hybrid, plug-in hybrid, and electric offerings is increasing too, which means good fuel efficiency has become key buying consideration as well.
While outright affordability isn’t the key focus, buyers here want good value for money.
For 2026, Drive revamped this award from Best Large SUV Under $80K to become Best Seven-Seat SUV Under $90K, to better reflect consumer practices.
The three finalists in this category are all good all-rounders, but the Palisade is the most polished.
The Santa Fe was completely new in 2024, arriving with a striking new look that truly set it apart from the rest of the pack, as well as larger dimensions and hybrid power.
A former DCOTY champ back in 2021, the Sorento received a major facelift in 2024. In 2025, it was treated to more than a mere model-year update, with the range now comprising 20 variants, offering petrol, diesel, hybrid, and plug-in hybrid power – the only car in Australia to do so.
Although many of the vehicles eligible for this category can go off-road, the focus here is more on urban living. For off-roaders, check out our Best Off-Road SUV Under $90K award.
Drive's pick: Hyundai Palisade Hybrid Calligraphy priced from $89,900 plus on-road costs.
Hyundai Palisade key facts:
- Priced from $89,900 + ORCs
- 245kW/460Nm 2.5-litre turbo petrol hybrid
- 6.8L/100km fuel consumption claim
Why the Hyundai Palisade won:
- Luxurious interior
- Refined hybrid powertrain
- Locally-tuned suspension
This year, the final three contenders were all from the Hyundai Motor Group, and it was a close fight, with all three offering excellent driving manners, high-quality interiors, and a mix of powertrain options.
But there has to be one winner, and the Palisade is a notch above the rest.
In 2025, Hyundai completely revamped the Palisade as it ushered in the second-generation model, doing away with the V6 petrol and 2.2-litre four-cylinder diesel powertrains and replacing them with a single 2.5-litre turbo-petrol hybrid.
There is now only a single grade in the new Hyundai Palisade line-up, with the model range trimmed down to just the top-of-the-line Hybrid Calligraphy grade, which is available in standard form as an eight-seater, or a seven-seater with captain’s chairs in the second row.
The eight-seater starts from $89,900, while the seven-seater costs $1000 more.
The new Hyundai Palisade is a huge leap forward compared to its predecessor. The 2.5-litre hybrid powertrain is slicker and more refined than the Santa Fe’s, and it offers a more upmarket look and feel.
It is one of only a few seven-seat SUVs to offer a genuinely liveable third row for adults, coupled with practical touches and an abundance of space overall.
Judges also admired the cabin's quietness, achieved through improvements such as tyres with internal sound deadening, thicker interior carpeting, additional soundproofing for the engine bay, and acoustic laminated glass.
The Palisade also debuts Hyundai's clever Digital Key 2 system, and the sound system has been upgraded from a 12-speaker Harman Kardon installation in the old model to a 14-speaker Bose setup.
While not perfect, as it only has passive dampers, the Palisade has a number of suspension components, including springs and anti-roll bars, that have been developed for Aussie conditions to improve ride.
Buyers may miss the towing capacity, however, which is down with the Hybrid compared to the previous generation, now 2000kg braked versus 2200kg with its predecessor.
In addition to the more refined hybrid powertrain, judges felt the Palisade has a more premium aesthetic and luxury features than its stablemates, which offer their best value for money further down the price range.
A born-and-bred newshound, Kathryn has worked her way up through the ranks reporting for, and later editing, two renowned UK regional newspapers and websites, before moving on to join the digital newsdesk of one of the world’s most popular newspapers – The Sun. More recently, she’s done a short stint in PR in the not-for-profit sector, and led the news team at Wheels Media.
