2025 Volkswagen Atlas vs 2025 Hyundai Palisade

The 2025 Hyundai Palisade stood out with its bold and unmistakable design, moving away from rugged off-roader styling to a more angular and technical look. This design choice sparked mixed reactions, but many appreciated the upscale appearance, especially after the 2023 refresh. Inside, even the base SE trim offered a modern and upscale feel, with premium materials like leather and artificial suede in higher trims. Thoughtful details such as USB ports in seatbacks and smartphone storage pockets added to its appeal, although some control markings were hard to read in daylight.

In contrast, the 2025 Volkswagen Atlas impressed with its chiseled, muscular appearance, enhanced by polished aluminum detailing and sizable 21-inch wheels. The Mountain Lake Blue color resisted dirt, maintaining its upscale look. Inside, the Atlas offered a warm environment with diamond-stitched leather and metallic accents. The digital instrumentation and large infotainment touchscreen promised a high-tech experience, although the touch-sensitive controls for temperature and volume were less satisfying to use.

The 2025 Hyundai Palisade featured a 3.8-liter V6 engine producing 291 horsepower and 262 pound-feet of torque, paired with an eight-speed automatic transmission. It offered a towing capacity of 5,000 pounds and averaged 22 mpg in combined driving. Despite its age, the Palisade handled well, with a firm ride at lower speeds and a softer feel on highways. The powertrain was smooth and refined, though not very fuel-efficient, recording 16.9 mpg in city driving and 19.8 mpg overall during testing.

The 2025 Volkswagen Atlas switched to a turbocharged 2.0-liter four-cylinder engine, delivering 269 horsepower and 273 pound-feet of torque. This engine promised better fuel economy than the previous V6, with an EPA rating of 21 mpg combined. However, it returned 15.5 mpg in city conditions and 19.2 mpg overall during testing. The Atlas struggled with ride quality, feeling brittle over road imperfections and exhibiting excessive body motions at highway speeds. Despite these issues, its handling was predictable, and the brakes performed well under stress.

The Hyundai Palisade offered three rows of seating, with the Calligraphy trim featuring Nappa leather and massaging front seats. The second-row captain’s chairs provided comfort with heating and ventilation, while the third row, though snug, was heated and equipped with USB-C ports. Cargo space was generous, with 18 cubic feet behind the third row and up to 86.4 cubic feet with seats folded.

The Volkswagen Atlas excelled in interior space, offering a comfortable third-row seat and a cavernous cargo area. The SEL Premium R-Line model featured heated, ventilated, and massaging front seats, though the leather felt stiff. The second-row bench accommodated three adults comfortably, and access to the third row was easy. Cargo space was impressive, with 20.6 cubic feet behind the third row and up to 96.6 cubic feet with seats folded.

The Hyundai Palisade’s technology, though starting to look dated, was functional with a 12.3-inch digital driver display and infotainment system. It required a cable for smartphone connectivity but offered features like Bluetooth support, wireless charging, and a Harman Kardon audio system. The voice recognition system performed well, and the Palisade included a head-up display and surround-view camera.

The Volkswagen Atlas used the MIB3 operating system with a 12-inch touchscreen. It lacked traditional controls, relying on touch-sensitive buttons, which were not user-friendly. The voice recognition system was inconsistent, but wireless Apple CarPlay and Android Auto provided a better experience. The Harman Kardon audio system was excellent, though the MIB3 system had glitches affecting usability.

The Hyundai Palisade came with Hyundai SmartSense, offering features like forward collision warning, automatic emergency braking, and Highway Driving Assist. It earned a Top Safety Pick from IIHS through 2024 but missed the accolade in 2025 due to a Poor rating in a new test. NHTSA gave it five-star frontal impact and four-star rollover ratings.

The Volkswagen Atlas featured IQ.Drive, including adaptive cruise control, lane-keeping assist, and emergency assist. It provided a five-year subscription to Car-Net Safe & Secure services. The Atlas earned a five-star overall safety rating from NHTSA and was a 2024 IIHS Top Safety Pick, with 2025 ratings pending.