Lexus TX vs Hyundai Palisade Hybrid

The 2026 Hyundai Palisade Hybrid was available in Canada in two trim levels: Luxury and Ultimate Calligraphy. These trims seamlessly integrated into the existing gas-only Palisade lineup, which included the Preferred Trend, the rugged XRT Pro, and the Ultimate Calligraphy. While the top trim was predictably more impressive, every Palisade trim exuded style and presence. The base Luxury trim came standard with 20-inch alloy wheels, and the front of each Palisade featured a massive grille with horizontal slats framed by LED projector headlights and a stack of five large LED daytime running lights. The rear view was equally handsome, with wide-spaced letters spelling the vehicle’s name below a large Hyundai emblem and stacks of five LED taillights wrapping around the rear corners. The exhaust was tucked away, hinting at the Palisade's focus on peaceful, efficient driving rather than outright performance.

Inside, the 2026 Hyundai Palisade was even more impressive. The base gas-only trim levels came standard with H-Tex synthetic leatherette upholstery, eight-way power adjustment for the driver’s seat with two-way lumbar support, and three-stage heating elements for the driver’s and front-passenger seat. Moving up the trim ladder added features like four-way lumbar adjustment, seat ventilation, integrated driver’s seat memory settings, and on the Ultimate Calligraphy trim, beautiful Nappa leather upholstery. The Palisade’s interior design was a delight, filled with organic and natural shapes that felt thoughtfully considered and engineered. Overall, there was a richer feeling of craftsmanship inside the Palisade than in other non-luxury crossovers.

The 2026 Lexus TX was available with a variety of packages depending on the powertrain. The TX 350 came with the Luxury package by default and was also available with Ultra Luxury, Executive, and F Sport 3 packages. The 500h hybrid started with the F Sport Performance 2 package and could also be optioned with the F Sport 3 package. The most affordable packages got 20-inch wheels, but most went big with standard 22-inch platters that filled out the wheel wells. The grille retained some of the older “spindle grille” shape, but it didn’t draw focus from the sharp bi-LED headlights. The rear LED lighting spanned the width of the vehicle, topped off by a small roof spoiler. Roof rails were also available for those who wanted to add a rack or other storage.

Inside, the Lexus TX offered three interior colour options: the standard grey, a light grey called Birch, and a dark brown called Peppercorn. Ambient lighting brought warmth to the cabin, and there was some lovely suede trim over the glovebox on the passenger side. However, overall material quality wasn’t up to luxury car standards, with plenty of basic plastic scattered about. Lexus also redesigned the door handles, which merely reacted to pressure and didn’t actually pull out or engage any kind of mechanical lever. Inside, you opened the door by pushing on a handle, not pulling it. It wasn’t a deal-breaker, but more attention to detail in the cabin would have been appreciated.

The 2026 Hyundai Palisade Hybrid defied the stereotype that hybrids were slow, especially for a big, three-row crossover. Hyundai had turned that notion on its head with the Palisade's launch in 2020, and the 2026 model continued its reputation as a fun-to-drive family car. The hybrid relied on 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. Combined with the electric motors, the Palisade delivered a total of 329 horsepower and 339 pound-feet of torque, ensuring it never lagged, whether around town or on the highway.

The Palisade Hybrid's performance was further enhanced by its advanced eight-speed automatic transmission and propulsion systems. Hyundai's next-generation hybrid system eliminated the old platform’s starter motor and auxiliary belts, handling their functions via a more capable electric motor connected directly to the engine. This motor supported a second unit responsible for vehicle propulsion when needed. The result was an optimized powertrain that produced more power while consuming less fuel. The Palisade also impressed with its lack of noise and vibration inside the cabin, thanks to noise-absorbing carpet and acoustic glass. The steering feel was sharper than expected for a three-row crossover, although the pedals felt a bit squishy.

The base Lexus TX 350 came with a 275-horsepower 2.4-litre turbocharged four-cylinder engine, while the TX 500h added hybrid power to boost output to 366 hp. The gas model featured an eight-speed automatic transmission, while the hybrid included a six-speed automatic, which some drivers appreciated over the continuously variable transmission (CVT) typically equipped with electrified powertrains. The TX 350 had electronically controlled full-time all-wheel drive (AWD) as standard, while the TX 500h came with Lexus’s Direct4 AWD system, which used electric motors to distribute torque to each axle on demand.

Drivers could choose between Normal, Eco, or Sport drive modes. Sport mode increased throttle sensitivity for a more immediate response, although it wasn’t the most aggressive Sport mode. The TX 500h came with both adaptive suspension and rear steering for better handling. Overall, the TX wasn’t meant to be a sports car, but it offered a comfortable and capable ride.

The 2026 Hyundai Palisade Hybrid offered 2,455 litres of total cargo capacity, trailing the Chevrolet Traverse, Toyota Grand Highlander, and Honda Pilot, which offered 2,764, 2,761, and 3,166 litres respectively. However, it provided more space than other three-row crossovers like the Ford Explorer, Nissan Pathfinder, and Mazda CX-90. The Palisade Hybrid didn’t offer as much second-row legroom due to the battery’s position under the front passenger seat, but it still provided more space than most competitors. The third row was less spacious, with legroom measuring a maximum of 815 millimetres and headroom at 957 mm.

Despite these measurements, the Hyundai Palisade offered a more comfortable cabin than the competition. Dual-zone climate control with second-row HVAC controls came standard, as did seven 100-watt USB-C power outlets. The Palisade Hybrid came standard with a second-row bench seat and seating for eight, but captain’s chairs were available on the Luxury Hybrid and standard on XRT Pro and both Ultimate Calligraphy trims. The Palisade was also awash with cubbies for smaller items, with a centre console featuring a rubberized cargo space and a small shelf ahead of the front passenger seat.

The 2026 Lexus TX included three-zone automatic climate control, heated and cooled front seats, heated second-row seats, and a heated steering wheel. Ventilated second-row seats were standard on the TX 500h. The third row was remarkably spacious, with a recline function and plenty of headroom, making it comfortable for full-sized adults. Each seat had its own cupholder and USB-C port. A one-touch button on the shoulder of the second-row seat tilted and slid it forward for easy entry into the third row, although folding the second row flat was more complicated.

The front seats were roomy but could have used more thigh support. The heating function was excellent, and the cupholders were versatile, accommodating both large and small water bottles. Most climate controls were on the screen, but Lexus retained physical dials for temperature controls. The TX had excellent cargo space, with 572 litres accessible with all three rows in place, expanding to 1,625 litres with the third row flat and 2,747 litres with all rear seats folded. All TX models could tow up to 2,268 kilograms when properly equipped.

The 2026 Hyundai Palisade Hybrid came well equipped with a standard 12.3-inch touchscreen and a matching 12.3-inch digital instrument cluster. While the screen didn’t dominate the dash, it was a bit far from the passenger’s seat. HD and Sirius XM satellite radio were supported, along with wireless Android Auto and Apple CarPlay. The standard Driver Talk intercom system made communication between the first and third rows easier. All trims except the base model added a 14-speaker Bose stereo, and a 15-watt wireless charging pad was standard. The Ultimate Calligraphy trim featured a built-in dashcam, and the 2026 Palisade Hybrid introduced “Stay Mode” for running the climate control and infotainment system while the gas engine was off.

The tech in the Lexus TX was hit or miss. The 14-inch colour touchscreen was easy to use and responsive, but some features lacked polish. Wireless Apple CarPlay and Android Auto were standard but sometimes conflicted with the native audio system. A subscription was required for in-dash navigation and other features like a voice assistant and digital key. The back-up camera was clear and featured an available bird’s-eye view. The available Advanced Park system could handle parking duties, and the rear-camera mirror provided an unobstructed view. With seven USB ports and wireless charging, devices were well-supported.

Every 2026 Hyundai Palisade came standard with a suite of advanced driver assistance systems (ADAS), 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 up, including both hybrid trims. The rear doors featured a standard safe-exit alert indicator. The 2025 Palisade received a Top Safety Pick rating from the IIHS, the institute’s second-highest honour.

Every Lexus TX included the company’s Safety System+ 3.0 as standard, featuring forward collision warning, lane tracing assist, lane departure warning, traffic sign recognition, and Proactive Driving Assist. The adaptive cruise control worked well once set up, although it was initially confusing. The NHTSA rated both the TX 350 and TX 500h five out of five stars for crash safety, while the IIHS gave the TX a mid score of “Acceptable” in its small overlap front crash test on the driver’s side and a top score of “Good” for the passenger’s side.