BMW X3 vs Hyundai Palisade

What's the difference?

If a BMW X3 is for you, then we have no quarrels with that. It’s a better all-round vehicle than the one it replaces and represents better value. And even though BMW mandates a hybrid driveline, there are still some significant choices within that framework.

By all means buy the M50 if you crave the rush of acceleration that almost 300kW can provide. And if efficiency is your altar of choice, then the plug-in 30e makes a lot of sense, too.

But even if you can afford either of those two more expensive variants, whatever you do, don’t dismiss the entry-level 20 model. At least drive it alongside the others and then make a decision based on all the facts, and not the assumption that entry-level equals the car you afford rather than the car you want.

It might be cheaper, but there’s absolutely no doubt that the 20 model is the one that shines and arguably makes the most of the opportunities BMW’s latest tech offers.

Sometimes less really is more.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

The Palisade Calligraphy is a nice SUV to drive on road. It’s composed and refined, and as an eight-seater, it makes a sensible daily driver, especially for those of us with more than a couple of children.

My teenagers loved this Palisade because there were charge points for everyone – namely them – and that second row, according to them, is very comfortable.

It has a few niggles, but, while it’s not perfect, the Palisade Calligraphy does so many things so well that you are willing to forgive it its few quirks and AWD gives it a handy advantage over any of its 2WD rivals. 

It might be badged an X3, but this is no small vehicle. In fact, it’s bigger than the original BMW X5 (which set the tone for this entire market segment) with a length of 4755mm (4667mm for the first X5) and a width of 1920mm (1872mm). That said, it’s 25mm lower than the outgoing X3 in a move to emphasise its sportiness. Shorter it may be, but it’s also 16mm wider on the front track and 45mm wider on the rear than the outgoing model.

BMWs latest styling cues also appear in the new car, including the large, split-kidney grille that, for Australian-delivered cars, is also lit around its edges. The short overhangs that characterised the original X5 (and soon characterised this whole BMW genre) remain, and the T-graphic LED tail-lights round out the stylistic touches.

The other thing we noticed (and we’ve seen it on other cars recently) is a panoramic sunroof that doesn’t actually open.

This is a nice looking SUV in a generic, non-offensive way.

The Calligraphy is in the top ranks of the Palisade range, so, in terms of design you'd expect it to be a bit easy on the eye and it is, especially the exterior, from the big grille all the way back.

Our test vehicle’s colour looks a lot like black to me. Hyundai calls it 'Robust Emerald' and I started to not strongly dislike it after a few days.

The interior has a real premium look and feel to it with Nappa leather accents and expanses of soft-touch surfaces adding to that prevailing overall impression.

This is a cleanly designed space – it's really quite easy on the eyes – and it's comfortable to be in. Bonus: the build quality is great, it all feels so well put together. 

This Palisade is also a prime example of a car maker effectively blending high-tech displays and controls into a cabin in a low-key way – nothing really seems out of place here and everything is easy to locate and operate.

Cabin space is plentiful in the X3 with loads of room in the front, possibly thanks to the dashboard that is pulled back from you with only the twin screens and steering column offering themselves up to the driver. Even the air-vents are somewhat hidden. There’s good vision out and the seats themselves are lovely. The step into the cabin feels to be at just the right height, too; not too high, not too low.

Rear seating is good, too, although the X3 will always be better as a four seater than five thanks to the shape of the rear bench, but the glass roof opens the space up and there’s plenty of charging points and storage nooks. The sun blinds on the rear-side windows of the more expensive versions should be standard kit on every car sold in Australia.

We’ll take exception to the new gear-selector which doesn’t have a defined Park position and instead relies on applying the park-brake to engage Park. But the ambient light and contrasting cabin colours are a bit of a breath of fresh air.

There are levers in the cargo area to quickly fold the rear seats (60:40) at which point luggage space jumps from 570 litres in the mild hybrid cars to 1700 litres. The battery-pack of the 30e model means that luggage space starts at 460 litres and can be expanded to 1600 litres.

The latest version of BMW’s sometimes controversial iDrive operating system is simpler and easier to use than before and supported by a new operating system, but there’s still some familiarisation necessary. One improvement has been the addition of QuickSelect which works somewhat like the old favourites button system and gets around the need to drill into menus to access the functions you want.

A head-up display is a terrific addition, although where some displays are more tolerant of polarised sunglasses, the HUD in the BMW didn’t like mine and went dark at the most inconvenient angles.

None of the X3 variants feature a spare tyre of any sort. The 19-inch tyres on the base grade are run-flats, while everything else gets a repair kit for roadside emergencies.

If you want to tow, the good news is that all X3 variants can do so. But you will need to purchase the $2200 towing package which enables the X3 to haul a trailer weighing up to 2000kg with a maximum tow-ball down-weight of 200kg.

Once you've spent any time in the Palisade Calligraphy cabin, you get to realise just how comfortable it is. 

The driver and front-passenger seats are very comfortable and very supportive, and these are both power adjustable. The driver’s seat is 12-way power-adjustable so you can precisely dial in your position.

There are so many handy features to the interior that if you can find something that's missing, I want to hear about it. 

There are plenty of storage spaces and cupholders* and lots of charge points, including a USBs up the front and two USB-Cs for each row’s passengers.

* Hyundai reckons there are 17 cupholders throughout the Palisade interior but I didn’t count them so we’re taking the company's word for it.

The second row is quite spacious and on the right side of comfortable and the passengers have access to sufficient controls including climate control. 

The outboard seats are heated and there are controls for the fan on the back of the centre console. There are USB-C points on the inside edges of the front seats for the second-row passengers, a couple of cupholders either side as well as sun shades on each second-row window.

That’s helpful if you're trying to get your little ones to sleep, or at least prevent the sun from blasting them in the eyes. 

In terms of child restraint points in the second row, you have three top tether points and two ISOFIX anchors and in the third row you have two top tethers and one ISOFIX location. 

The third row is the domain of children, or two adults if you don't like them. There's not a lot of room. I racked the second row forward just a bit to give me some much-needed knee room.

There are a couple of cupholders either side in the third row and passengers there do have access to air vents. This is sufficiently comfortable for children, but it's a no-go zone for adults. 

With all three rows in use, there is a claimed 311 litres of cargo space in the boot area, which doesn’t mean a lot until you can see what fits in there, for better or worse.

Now, normally in a Family review, you might expect to see groceries and maybe a pram in the rear cargo area as an illustrative measure of what you can or cannot fit in there. Well, that’s not my style.

This is an AWD vehicle, and I drive on dirt roads as part of any AWD test, so I wanted some items from my vehicle-recovery kit onboard, including a set of four MaxTrax (vehicle-recovery boards, if you don’t know already), an air compressor (to re-inflate a punctured or intentionally deflated tyre), a first-aid kit, and a tyre-puncture repair kit.

All of these things fit easily into the rear cargo area with the third row up and theoretically in use.

That listed cargo space increases to 704 litres with the third row stowed away.

Then, with the second and third rows down you’re at 2447 litres.

Kerb weight is 2070kg and GVM is 2755kg, so you have a little bit of wiggle room in terms of how much you can pack onboard. A full-size spare sits under the body at the rear. 

The Calligraphy is available as a 3.8-litre petrol front-wheel drive with an eight-speed automatic transmission and eight seats, or with the 2.2-litre turbo-diesel engine, eight-speed auto and AWD, as in our test vehicle, priced from $82,175 (excluding on-road costs).

Standard features include a 10-inch head-up display, heated steering wheel, Nappa leather-appointed seats, 12-way power-adjustable driver’s seat (with preferred position memory), ventilated first- and second-row seats, heated second-row seats, dual sunroof with tilt function, remote park assist (forward and reverse), a digital rear-view mirror and 20-inch alloy wheels with a full size spare wheel.

Hybrid tech across the board is the key phrase here, with the base-model 20 xDrive fitted with a mild hybrid electric motor and battery pack that works in conjunction with the 2.0-litre, turbocharged petrol four-cylinder engine. Power is 140kW and torque 310Nm. Like most mild hybrids, the electric motor offers power regeneration during braking, a mellow (by EV standards) kick in the pants during take-off and acceleration and also acts as the car’s starter motor.

The performance flagship, the M50 xDrive taps into the same technical philosophy with a mild hybrid augmenting the turbocharged six-cylinder inline petrol engine. In this case, however, peak power is a hefty 293kW and torque maxes out at 580Nm.

The most technically adventurous X3 is the 30e xDrive which uses plug-in hybrid tech to offer a claimed 91km of electric driving, about twice that offered by the original X3 PHEV it replaces. When the same 2.0-litre four-cylinder petrol as fitted to the 20 xDrive, and the electric motor are humming along together, there’s 220kW of power and 450Nm for the taking. The PHEV X3 can run in purely electric mode at up to a claimed 140km/h.

All variants use BMW’s familiar eight-speed automatic transmission and in each case, drive is sent to all four wheels on a permanent basis. Interestingly, the 30e and M50 versions package their electric motor as part of the engine-transmission combination. The 20, meanwhile, places its electric motor externally, as part of the drive-belt rotating assembly.

The M50 model has an M button that unleashes the full performance with one touch, and features an electronically locking rear differential in the interests of high-speed turn-in.

Adaptive suspension that varies the degree of damping is also part of the package on each X3 variant.

Our test vehicle has a 2.2-litre four-cylinder, common-rail, turbo-diesel engine sending 147kW (at 3800rpm) and 440Nm (at 1750-2750rpm) to all four wheel via an eight-speed automatic transmission. 

This Palisade has an AWD system called 'HTrac' (Hyundai Traction) and it operates on a similar principle to most other AWD systems in city-going SUVs, and that is it directs power to the appropriate wheels to optimise traction. 

This vehicle also has multiple drive modes – 'Comfort', 'Sport', 'Eco' and 'Smart' – for on road and 'Sand', 'Mud' and 'Snow' for when you go off-road.

These off-road drive modes are absolutely no substitute for 4WD, but they are fine for when conditions get slippery, for example, if there’s a little bit of rain on the bitumen or the dirt track becomes slightly muddy.

As you might expect, the PHEV 30e model is the efficiency superstar of the X3 line-up with an official combined test figure of just 1.6 litres per 100km and 38 grams of CO2 per kilometre. The four-cylinder 20 xDrive is not bad for its size at 7.5L/100km (and 171g), yet the bruising six-cylinder M50 version with all that performance is not too far behind with an official figure of 8.2L/100km (187g).

The 30e PHEV features a selectable battery-saving mode as well as the option of forcing EV-only running. It features a 19.7kWh battery and BMW claims it can charge using a three-phase, 11kW socket from empty to full in two hours, 15 minutes. It does not make use of fast-chargers.

Exactly how far you’ll travel in the PHEV model will depend hugely on how and where you drive. On long, open road journeys, fuel consumption won’t be much different to the others, but with just a 50-litre fuel tank, it’s range won’t be stellar. But in urban running where the batteries are being recharged for free as you brake, the difference will be significant. Meanwhile, with a 65-litre fuel tank in the mild hybrid grades, the theoretical range (based on the official fuel number) is 865km and 765km for the 20 and M50 respectively.

While BMW recommends premium fuel for maximum efficiency, it also says that each X3 variant will not be harmed by the use of standard ULP if that’s all you can get hold of.

Fuel consumption is listed as 7.3L/100km on a combined cycle. On this test, I recorded 9.0L/100km. 

The Palisade has a 71-litre fuel tank. So, going by that on-test figure, you could expect a driving range of almost 800km from a full tank.

But remember you’ll be carrying more people and gear onboard so fuel economy will be affected accordingly.

Big heavy SUVS like this one haven’t always been too dainty on their feet. The extra bulk and height mean suspension has to be firmer, the big wheels and subsequent loss of tyre sidewall depth plays against ride quality and before you know it, the compromises have piled up and the driving experience has gone to hell.

This time, however, BMW’s claim that the X3 was designed from the start as an SUV and not converted from a sedan platform seems to hold water. There’s an overall greater sense of cohesion in the way the car steers and flows through corners and faster bends. The steering feel and feedback are a big part of that, too, and the whole seems at least as great as its parts.

The M50 is, predictably, a rocket with loads of accessible acceleration and a great noise while you’re enjoying it. That said, the 21-inch wheels and tyres don’t do anything for ride quality, but it remains an entertaining performance car in a familiar, ICE kind of way.

The plug-in is also perky with its 220kW on tap, but it’s less old-school and more techy. And while you can’t pick the point at which ICE hands over to electric and vice-versa, sensitive drivers will absolutely know that there’s a big dollop of electrical assistance when your right foot starts asking the tough questions. It definitely feels more overtly hybrid, though that shouldn’t be any kind of surprise, purely because that’s precisely the case.

Which brings us to the 20 entry-level grade. And while it’s going to be a controversial statement, this emerges as the most cohesive, rounded variant of the new X3. There’s something in the way the fizzy, bubbly (but very smooth) 2.0-litre four-cylinder provides more than enough urge, but never threatens to dominate the dynamics.

With less weight over the front wheels than the M50, and less weight overall than the PHEV, the 20 corners flatter, steers more intuitively and is simply more fun more of the time. Even on the optional 20-inch tyres, it rides better than the others, too, and might even be better again with the standard 19s other than the fact that those are run flats and we didn’t get try them.

This is an easy driving wagon. It's nice and comfortable, it's refined, it's always composed and it's always controlled and it's just an all around nice drive from the engine and the auto, which are a really good pairing. 

As mentioned earlier, kerb weight is listed as 2070kg and this Palisade has an 11.8m turning circle, so it’s not an insubstantial vehicle to steer around.

It’s not very dynamic, not very lively, but it has a nice consistent feel to it all – and being composed and consistent is important with something that's intended as a people mover, as a family vehicle because that's what you want. 

Ride and handling are well sorted out and, though there’s a touch of firmness to the suspension, ride quality is smooth in general terms. 

There are the paddle shifters on the steering wheel if you want a little bit more input into shifting up and down in the automatic transmission, but it’s rather clever so you can just let it do its job as it does that nicely. 

There are four on-road drive modes – Comfort, Eco, Sport and Smart. Smart tweaks vehicle characteristics such as engine output, transmission settings and braking to suit your driving style, and depending on which of the other modes you select, it will adjust those characteristics and/or more to suit the terrain or the conditions you’re driving in. 

And while this Palisade is impressive in terms of performance and driving characteristics, there are a few niggles. 

Acceleration is a bit laggy and it takes a heavy right boot to get the Palisade moving at pace.

Some of the driver-assist tech is often abrupt and intrusive. The traffic-sign recognition (or speed limit assist) is clunky. It detects and reacts to signs that don't apply at that time of day, say school zone signs, or it picks up on signs that don't apply to that section of road.

So, it's forever chopping and changing between speeds you should be at and speeds you shouldn't. You can adjust those settings or switch them off in the Hyundai app via the touchscreen multimedia system, but those settings return as defaults when you next start the vehicle. 

Now for some dirty talk. The Palisade Calligraphy is an all-wheel drive SUV wagon that does sufficiently well on terrain that would be moderately challenging for a 2WD vehicle. 

Our light-duty test track is sandy and there are some very shallow wheel ruts – nothing serious – and this Palisade handled all of the minor challenges well.

Ride quality over some of the lumpier sections was good. It's a bit on the firm side as you'd expect because this is a SUV designed for the suburbs not the Simpson, but it is perfectly reasonable on a very easy dirt track in dry conditions. 

And that’s the good thing about an AWD over a 2WD vehicle; you have that extra degree of traction, especially if you get into a traction-compromised situation such as a slippery wet bitumen road or a slightly muddy, but otherwise well-maintained, gravel route. 

This Palisade has three terrain driving modes – Sand, Mud, and Snow – which each adjust throttle response, engine output, and the automatic transmission, among other things, to ensure you keep moving safely with controlled momentum. 

If you’re planning to use your daily driver / family mover as a towing platform it’s handy to note that the Pailsade’s towing capacity is 750kg (unbraked) and 2200kg (braked).

The Palisade has the maximum five-star ANCAP safety rating, from testing in 2022.

As standard the Calligraphy has seven airbags, as well as a stack of driver-assist technology including AEB, adaptive cruise control, a 360-degree camera, lane keeping assist and more.

BMW’s warranty on the X3 is the company’s usual five-year/unlimited kilometre deal. But in this case, there’s also a six-year/100,000km warranty on the high-voltage battery.

Also typical for BMW is the service interval which is not a set time or distance and instead is determined by how the car has been used. It’s called condition-based servicing and it’s nothing new at BMW.

There’s also capped-price servicing available. For the X3, the five-year/80,000km service package is $2475.

Every Palisade is covered by a five-year/unlimited kilometre warranty and roadside assistance is complimentary for the first 12 months, renewed annually (for the life of the vehicle) if you have your Palisade serviced at an authorised Hyundai dealer. 

Service intervals are set at every 12 months or 15,000km, whichever occurs soonest, and pre-paid plans are available over three, four or five years.

The latter costs $2445, which equates to $489 per service. Not cheap but not outrageous.