The next-generation Hyundai Palisade is reportedly set to debut in 2025 featuring a hybrid engine option. This move aligns with the Korean automaker's plan to electrify its lineup n the future.

The report comes from South Korean publication Chosun Biz, which claims that the next-gen Palisade will enter vehicle testing in the second half of this year with production to start by January 2025. It is also believed to come with a 2.5-liter turbocharged gasoline engine with a hybrid setup.

While nothing is official as of this writing, Hyundai had previously hinted that there's a possibility of offering the Palisade with a hybrid engine option. Hyundai North America Vice President of Product Planning and Mobility Strategy Olabisi Boyle told CarBuzz last November 2022 that the car brand is willing to offer a hybrid Palisade should customers ask for it.

Hyundai believes that the hybrid Palisade is the right step toward the transition of its midsize SUV into having a fully electric powertrain. After all, the Korean automaker is headed toward full electrification like all other car brands. Hyundai Motor CEO Jose Munoz shared that the car brand's ultimate goal is to "become a strong player in pure electric vehicle technology."

Boyle added that Hyundai is also willing to offer a hybrid Santa Cruz should the market demands it. The Santa Cruz is a compact pickup truck and Hyundai's challenger to the Ford Maverick, which comes with a hybrid powertrain. To put things in perspective, the Maverick outsold the Santa Cruz in 2022 by almost 38,000 units.

The current Hyundai Palisade debuted at the 2022 New York International Auto Show with a carried-over 3.8-liter V6 gasoline engine. If the report from South Korea turns out to be accurate, the Palisade's current 3.8-liter V6 will be replaced with a smaller 3.5-liter turbo engine that will be offered alongside the 2.5-liter hybrid gasoline engine.