WardsAuto handed the 2026 Hyundai Palisade Hybrid one of its 10 Best Engines & Propulsion Systems awards today, and the reasoning is worth unpacking: judges chose it specifically because it doesn’t make the usual compromises.
The powertrain at the center of the award is a 2.5-liter turbocharged four-cylinder hybrid producing 329 hp and 339 lb-ft of combined torque, paired with a 6-speed automatic. Both front-wheel-drive and Hyundai’s HTRAC mechanical all-wheel-drive are available, and that last part matters. Most hybrid systems in this class route drive through electrically decoupled rear axles, which calibrate traction electronically rather than through a direct mechanical connection. The Palisade Hybrid uses a fully mechanical AWD setup, the same architecture buyers get in the non-hybrid model. WardsAuto judge Robin Warner called that out directly: the system delivers AWD traction on slippery surfaces while still improving fuel economy, with highway efficiency projected above 30 mpg. Hyundai has not shared final EPA certification figures, but the company’s internal testing puts estimated range at 619 miles for the Blue SEL Premium trim on a fully charged battery.
Towing capacity lands at 4,000 lb, which is below the 5,000-lb ceiling of the Palisade’s non-hybrid powertrain but respectable for a hybrid drivetrain in a three-row package. A Stay Mode function allows extended use of the infotainment and climate systems while parked by managing the hybrid battery, an ownership-experience feature that edges the Palisade Hybrid closer to plug-in EV behavior without requiring a plug.
This is Hyundai’s 18th product win in the WardsAuto program, which has recognized the best powertrains offered in the U.S. market annually since 1995. The award marks only the second time a Hyundai three-row SUV powertrain has been honored in the program’s 32-year history. The 2026 class is also notable as the first year WardsAuto’s selection featured only electrified powertrains across all 10 winners.
The recognition lands against a backdrop of real commercial momentum. The Palisade sold 123,929 units in the United States in 2025, a 13% increase over 2024, with global volume reaching 211,215 units. The hybrid powertrain introduced with the second-generation model now accounts for more than half of global Palisade sales. That kind of consumer uptake gives the WardsAuto recognition more weight than the typical industry-awards announcement — it confirms what buyers have already been choosing at dealerships. Hyundai’s broader push into U.S. production is running parallel, with the Kia Sportage Hybrid now built at the Georgia Metaplant, expanding the group’s domestic hybrid manufacturing footprint.
WardsAuto evaluated 26 powertrain nominees for the 2026 award cycle, assessing horsepower, torque, NVH behavior, observed efficiency, and technological innovation under driving conditions. Only all-new or significantly improved powertrains, along with prior-year winners, are eligible.
The Palisade Hybrid is the kind of vehicle that tests whether hybrid engineering can earn respect in a segment that has traditionally rewarded towing capacity and third-row practicality above fuel economy. A WardsAuto nod suggests it can do both, and 123,000 U.S. buyers in 2025 got there before the judges did.
Source: Hyundai. Images courtesy of Hyundai.
