Hyundai Finally Coming For Toyota Fortuner!

For over a decade, the Toyota Fortuner has been the go-to choice for Indians wanting a tough, no-nonsense SUV with go-anywhere ability and resale value to match. But change is coming. Hyundai, better known for its urban crossovers and feature-packed sedans, is gearing up to take on the Fortuner directly with its global flagship, the Palisade. Expected to arrive by mid-2026, the Palisade isn’t just another big SUV. It’s a signal that Hyundai wants a piece of the premium SUV pie - and it’s willing to challenge conventional SUV thinking to get there.
The Hyundai Palisade and Toyota Fortuner represent fundamentally different schools of thought. The Fortuner’s ladder-frame chassis, shared with the Hilux, is designed for toughness. It thrives on rough terrain, can take a beating, and has earned its reputation over the years in both urban jungles and remote hinterlands.
In contrast, the Palisade is built on a monocoque platform. This design, more commonly used in sedans and luxury crossovers, offers better ride comfort, superior road manners, and improved crash safety. Hyundai is clearly betting on a shift in buyer preference, away from rugged utility and towards refinement and everyday usability. The Palisade’s lower centre of gravity aids handling, while its high-strength steel frame adds structural rigidity. The downside? It won’t match the Fortuner when it comes to hardcore off-roading.
In markets like the US and Australia, the Palisade has earned praise for combining upscale interiors with family-friendly practicality. Expect India to get many of the same features. Highlights could include dual 12.3-inch displays, ventilated second-row seats, a panoramic sunroof, and Hyundai’s full suite of driver assistance systems.
More importantly, Hyundai is likely to adapt the SUV for Indian roads and climate. Suspension tuning to handle uneven surfaces and a robust air-conditioning system are likely inclusions. Under the hood, the international model’s 3.8-litre V6 petrol engine could be paired with a 48V mild-hybrid setup. A diesel option isn’t confirmed yet, but Hyundai’s hybrid roadmap hints at more electrified powertrains on the horizon. Or it could the same diesel that powers the Kia Carnival.
The Fortuner’s starting price of around ₹36 lakh already feels steep for what is essentially an old-school SUV. The GR-S variant crosses ₹52 lakh, and many buyers have started to question its value. This creates an opening for Hyundai, but only if it manages to price Palisade around Rs. 50 lakh, something that will defining require localization at some level. For that money, buyers may be tempted by the Palisade’s comfort, cabin tech, and premium ambience, especially if they don’t need extreme off-road capability. If imported as CBU, expect it to cost upwards for Rs. 65 lakh which will make it a marginal player.
The Palisade isn’t an isolated product launch. Hyundai is chasing a broader target - regaining momentum in a market where Mahindra and Tata have surged ahead on the back of popular SUVs. Hyundai has announced an aggressive product plan that includes 26 new models by 2030, with a strong emphasis on EVs and hybrids.
A hybrid Palisade, which has been spotted internationally with a 2.5-litre turbo petrol engine and dual motors producing over 320 bhp, could find a slot in Hyundai’s India line-up. Such a variant would appeal to buyers looking for an efficient, powerful alternative without switching to a full EV.
Toyota hasn’t been idle. The latest Fortuner update brings in features like a mild-hybrid diesel powertrain, 360-degree camera, and wireless charging. These changes show Toyota is willing to modernise, but the fundamentals remain the same - tough, durable, and conservative.
The Palisade, on the other hand, is a bold, tech-first offering that dares to challenge old norms. If Hyundai nails the pricing and backs it with strong localisation and support, it could change the rules of the game. For buyers, this brewing rivalry may finally bring the kind of options, value, and innovation that the premium SUV segment has long lacked.
The real question now is not whether the Palisade can dethrone Fortuner, but whether it will make enough of an impact to make Toyota up its Fortuner game.