The new Hyundai Palisade Hybrid has captured widespread attention, with over 30,000 pre-orders recorded on its launch day. While its robust performance and cutting-edge features are drawing in buyers, concerns are mounting about its fuel efficiency, which could limit its eligibility for hybrid tax benefits in South Korea. According to a leaked document, only the entry trim could have benefits.
The Allure of the Palisade Hybrid
For the first time, Hyundai has introduced a hybrid powertrain to the Palisade lineup, marking a major milestone for this flagship SUV. Equipped with a 2.5 turbo hybrid system, the Palisade Hybrid delivers an impressive 334 horsepower, ensuring strong and comfortable driving performance. This power upgrade positions it as a standout in the hybrid SUV market.
Fuel Efficiency: A Stumbling Block
Despite its high performance, the Palisade Hybrid’s fuel efficiency raises questions. South Korea’s hybrid tax benefits are tied to specific fuel efficiency standards based on engine size:
• Small vehicles (<1,600cc): Minimum 17 km/L
• Medium vehicles (1,600–2,000cc): Minimum 14.3 km/L
• Large vehicles (>2,000cc): Minimum 13.8 km/L
The Palisade Hybrid, built on a 2.5-liter gasoline turbo engine, falls under the large vehicle category and must achieve at least 13.8 km/L to qualify for these benefits. However, only the 7-seater Exclusive trim meets this standard, leaving the higher trims ineligible for tax benefits due to their lower fuel efficiency.
Tax Benefit Implications
The inability of most Palisade Hybrid trims to qualify for hybrid tax benefits may influence purchasing decisions. Buyers looking for tax savings might gravitate toward the 7-seater Exclusive trim, which achieves the required efficiency, while others may find the lack of incentives for upper trims a drawback.
Pricing Breakdown
The new Palisade Hybrid is priced as follows:
• 7-seater Exclusive trim: Starting at KRW 51.46 million (eligible for tax benefits)
• 9-seater model: Starting at KRW 49.82 million, benefiting from consumption tax exemptions.
A Balancing Act: Performance vs. Efficiency
While the Hyundai Palisade Hybrid delivers on power and innovation, its fuel efficiency leaves room for improvement. The exclusion of most trims from hybrid tax benefits could deter buyers seeking both performance and cost savings. However, for those prioritizing power and the prestige of a hybrid SUV, the Palisade remains an appealing choice.
