Audi Q3 vs Hyundai Palisade Hybrid

The 2026 Hyundai Palisade Hybrid was available in Canada in two trim levels: Luxury and Ultimate Calligraphy. These trims were part of the broader Palisade lineup, which also included the Preferred Trend, XRT Pro, and Ultimate Calligraphy. Each trim level, regardless of price, exuded style and presence. The base Luxury trim came with 20-inch alloy wheels and a prominent grille flanked by LED projector headlights and daytime running lights. The Palisade's profile featured body-colour, heated side mirrors with power-folding capabilities in the Luxury Hybrid trim. Acoustic side glass was standard, enhancing the vehicle's quiet ride. The rear design was equally striking, with wide-spaced letters spelling out the vehicle's name and LED taillights wrapping around the corners. The exhaust was discreetly tucked away, emphasizing the Palisade's focus on efficient and peaceful driving.

Inside, the Palisade Hybrid impressed with its thoughtful design and craftsmanship. The base gas-only trims featured H-Tex synthetic leatherette upholstery, eight-way power-adjustable driver's seat, and heated front seats. Higher trims offered additional features like four-way lumbar adjustment, seat ventilation, and Nappa leather upholstery in the Ultimate Calligraphy trim. The interior design was characterized by organic shapes and well-considered storage solutions, providing a richer feel compared to other non-luxury crossovers. The Palisade's interior was a testament to Hyundai's attention to detail and commitment to creating a comfortable and stylish cabin.

In contrast, the 2026 Audi Q3 aimed for a more SUV-like appearance with its tall front end, elongated hood, and traditional Audi "singleframe" grille. However, the design was cluttered with elements like faux air intakes and textured plastic on the rear bumper. The Q3 featured available headlights with programmable looks and OLED taillights on the Technik trim. Despite its SUV-like appearance, the Q3's design was not universally praised. The vehicle retained the Volkswagen Group MQB architecture, which was shared with the outgoing Q3 and other models. Sportier S Line styling features were standard, including a black grille and rear diffuser, with 18-inch wheels as standard and larger options available.

Inside, the Q3 offered leather upholstery as standard and wood dashboard trim at no extra cost. The cabin featured padded materials and distinct concave surfaces, providing a unique look and feel. While there was still plenty of plastic, the overall quality was in line with the Q3's entry-luxury price point. The Q3's interior design was a mix of practicality and style, with a focus on maximizing space and providing a comfortable driving experience.

The 2026 Hyundai Palisade Hybrid redefined the notion of hybrid performance in a three-row crossover. It featured a 2.5-litre turbocharged four-cylinder engine paired with two electric motors and a 1.65-kWh battery. The turbo-four engine alone produced 258 horsepower and 260 pound-feet of torque, surpassing the Grand Highlander's base hybrid engine. With the combined power of the electric motors, the Palisade delivered a total of 329 horsepower and 339 pound-feet of torque. This powertrain ensured the Palisade never lagged, whether in city driving or highway passing. The advanced eight-speed automatic transmission and next-generation hybrid system contributed to its impressive performance. The hybrid system eliminated the old platform's starter motor and auxiliary belts, relying on a more capable electric motor connected directly to the engine. This setup allowed for optimized power distribution and improved fuel efficiency. Inside the cabin, noise and vibration were minimized, thanks to noise-absorbing carpet and acoustic glass. The steering was sharp and responsive, although the pedal feel was somewhat soft.

The 2026 Audi Q3, on the other hand, was equipped with a 2.0-litre turbocharged four-cylinder engine, producing 255 horsepower and 273 pound-feet of torque. This marked an increase of 27 horsepower and 22 pound-feet of torque compared to the previous model. The Q3 could accelerate from zero to 100 km/h in 5.9 seconds, a significant improvement over the 2025 model's 7.4 seconds. The eight-speed automatic transmission was replaced with a seven-speed dual-clutch gearbox, while all-wheel drive remained standard. Despite its improved performance, the Q3's transmission was not calibrated for quick getaways, and the accelerator pedal was difficult to modulate at low speeds. The steering and suspension were vague, making spirited driving less engaging. However, at higher speeds, the Q3 exhibited a confident and refined character. The new laminated acoustic front-door glass reduced wind noise, but the ride quality was affected by the larger 20-inch wheels.

The 2026 Hyundai Palisade Hybrid offered a total cargo capacity of 2,455 litres, trailing behind competitors like the Chevrolet Traverse, Toyota Grand Highlander, and Honda Pilot. However, it surpassed other three-row crossovers such as the Ford Explorer, Nissan Pathfinder, and Mazda CX-90. The Palisade Hybrid's second-row legroom was slightly compromised due to the battery's position, but it still provided ample space compared to most competitors. The third-row legroom measured a maximum of 815 millimetres, trailing behind the Grand Highlander, Honda Pilot, and Ford Explorer. Despite these measurements, the Palisade's cabin was comfortable, with dual-zone climate control, second-row HVAC controls, and multiple USB-C power outlets. The Palisade Hybrid came standard with a second-row bench seat, offering seating for eight, while captain's chairs were available on higher trims. The interior was designed with practicality in mind, featuring numerous storage cubbies and a spacious centre console.

The 2026 Audi Q3, on the other hand, was slightly larger than its predecessor, with increased length, height, and width. The wheelbase remained nearly identical, resulting in similar legroom in both rows. The Q3 featured a standard reclining and sliding second-row bench seat, maximizing interior space. With the rear seat folded, the Q3 offered 1,414 litres of cargo space, an increase from the previous model. While the Q3 excelled in cargo space behind the second row, it trailed competitors in first-row headroom and rear-seat headroom. The Q3's towing capacity was 680 kilograms, which was competitive for the segment. The interior featured a new control layout, with a bar across the steering column for shifting and signalling. This design freed up space for cupholders and a cooled wireless device charger. The door panels also offered ample storage space.

The 2026 Hyundai Palisade Hybrid was well-equipped with a standard 12.3-inch touchscreen and a matching digital instrument cluster. The infotainment system supported HD and Sirius XM satellite radio, wireless Android Auto, and wireless Apple CarPlay. The Driver Talk intercom system facilitated communication between the first and third rows. Higher trims featured a 14-speaker Bose stereo, while a 15-watt wireless charging pad was standard. The Ultimate Calligraphy trim included a built-in dashcam, recording front and rear views. The Palisade Hybrid also introduced "Stay Mode," allowing the climate control and infotainment system to run while the gas engine was off.

The 2026 Audi Q3 featured the Digital Stage screen setup, combining an 11.9-inch digital instrument cluster and a 12.8-inch touchscreen in one curved housing. The infotainment system was based on Android Automotive OS, with standalone wireless Apple CarPlay and Android Auto. The system included a natural-language voice recognition system with ChatGPT integration. The Technik trim offered a head-up display and a 12-speaker Sonos audio system. The infotainment system featured updated graphics with larger icons for easier use.

The 2026 Hyundai Palisade Hybrid came standard with a suite of advanced driver assistance systems, including blind-spot warning, rear cross-traffic assist, and automatic emergency braking with pedestrian and cyclist detection. The blind-view monitor was standard on the XRT Pro and higher trims, displaying a camera feed of the blind spot in the gauge cluster. The rear doors featured a safe-exit alert indicator. The 2025 Palisade received a Top Safety Pick rating from the IIHS, but the 2026 model had not yet been crash-tested.

The 2026 Audi Q3 offered standard driver-assist features such as adaptive cruise control, lane departure warning, traffic sign recognition, forward collision warning, automatic emergency braking, blind spot monitoring, and rear cross-traffic alert. The Technik trim included a 360-degree camera system and a more sophisticated Adaptive Cruise Assist system. Crash-test ratings for the 2026 Q3 were not available, but the outgoing generation had mixed performance in IIHS crash tests.