Hyundai Motor Co.’s redesigned Palisade SUV drew more than 33,000 preorders on its first day, making it the automaker’s third-most successful launch by first-day reservation volume. The milestone trails only the Ioniq and the new Carnival.
The hybrid version of the Palisade accounted for 70% of preorders, underscoring robust consumer interest in fuel-efficient vehicles. Industry experts attribute the surge to a broader shift toward hybrids as demand for internal combustion engine (ICE) vehicles declines and challenges with electric vehicle (EV) adoption persist, including limited infrastructure and reduced subsidies.
Hyundai Motor Group announced that preorders for the All-New Palisade, set for release in January 2025, reached 33,567 units on Dec. 20. This marks a 50% increase compared to the 20,000 units preordered during the launch of the original Palisade six years ago.
Despite the hybrid model’s higher price—roughly 6 million won ($4,600) more than the gasoline version—and later delivery due to pending certification, it outsold gasoline variants by more than twofold. The hybrid’s fuel efficiency, rated at approximately 14 kilometers per liter (33 mpg) compared to 9 kilometers per liter (21 mpg) for the gasoline version, has been a key draw.
“Hybrid buyers can save nearly 1 million won ($770) annually on fuel costs,” said an industry insider. “With additional benefits like tax breaks, parking discounts, and toll exemptions, the price gap can be recouped within just a few years.” Advances in hybrid technology, including improved fuel efficiency and extended driving ranges, have also bolstered its appeal.
Hybrids take center stage in South Korea
Hybrids have become a dominant force in South Korea’s automotive market. Kia’s Sorento SUV, likely to be the nation’s best-selling vehicle in 2024, saw 71.3% of its sales come from hybrid models. Other popular vehicles, including the Kia Carnival (47.5%), Hyundai Santa Fe (71.4%), Kia Sportage (42%), and Hyundai Grandeur (53.6%), also reported significant hybrid adoption rates.
The trend is even more pronounced for newer models. Renault Korea revealed that 90% of sales for its recently launched Grand Koleos SUV were hybrids.
Data from the Korea Automobile & Mobility Association shows hybrid vehicle sales in the domestic market surged 25.9% year-over-year, reaching 321,857 units from January to November 2024. Meanwhile, EV sales fell 18.8% to 89,233 units during the same period. Hybrids now represent 35% of total vehicle sales, second only to gasoline vehicles at 39%.
“Environmental concerns are growing, but fire risks and charging infrastructure challenges are causing many consumers to hesitate in switching directly to EVs,” said Cho Chul, a senior researcher at the Korea Institute for Industrial Economics and Trade. “Hybrids offer an attractive middle ground with better fuel efficiency and eco-friendliness.”
