Core Insights - The second-generation Palisade has officially started pre-sales at the 28th Chengdu International Auto Show, with three versions available, priced at 293,800 RMB for the luxury version, 323,800 RMB for the premium version, and 363,800 RMB for the Calligraphy version [2] - Hyundai aims to improve its brand image in China by introducing high-end imported and performance models, with the Palisade being a key part of this strategy, having sold over 1 million units globally since its launch in March 2019 [2][4] - Despite the global success, the Palisade has seen limited visibility in China since its launch in 2023, indicating a need for increased sales in the Chinese market [2] Market Performance - From January to July, the domestic SUV market recorded retail sales of 6.294 million units, a year-on-year increase of 13.1%, with the mid-to-large SUV segment achieving sales of 716,000 units, up 8.6% [3] - The overall automotive market in China is approximately 20 million units annually, with around 10 million units being traditional fuel vehicles [3] Product Changes - The second-generation Palisade features significant changes, including a shift from a 3.5L naturally aspirated engine to a P1+P2 dual-motor architecture paired with a 2.5T engine and lithium-ion battery, achieving a combined power of 334 horsepower and a maximum torque of 460 Nm, with a range exceeding 1,000 kilometers [4] - The new model emphasizes luxury from the entry level, adding safety features like knee airbags and front middle airbags, as well as comfort features such as heated and ventilated front seats, heated second-row seats, and electric adjustments for the third-row seats [4] Pricing Strategy - The second-generation Palisade has a starting price that is 7,000 RMB lower than the previous model in China, despite comprehensive upgrades in configuration [4] - In contrast, the price of the new model has increased by approximately 60,000 to 70,000 RMB in the Korean market and is priced between 30,000 to 40,000 USD in the U.S. market [4] Target Audience - Hyundai is shifting its target demographic for the Palisade, aiming to attract younger families aged 30-40, who value luxury and smart technology, in addition to the traditional customer base aged 40-50 [5] - The company has introduced a "3+3安心服务" service plan to address concerns regarding high costs and long repair times for imported vehicles, which includes a 5-year/100,000 km warranty and free maintenance for three times [5] Brand Image Enhancement - Hyundai is not only focusing on high-end models but also on performance vehicles to enhance its brand image, with the Elantra N series gaining a strong reputation in China [6] - The Elantra N TCR Edition, a limited edition model, was showcased at the Chengdu Auto Show, highlighting Hyundai's commitment to performance and driving enjoyment [6]