Hyundai says the Palisade XRT Pro could lure buyers away from popular body-on-frame off-roaders, despite the more premium focus and car-like underpinnings of the vehicle it's based on.

"It's quite a unique product in the market... we have an idea of who the customer might be," general manager of product planning Jonathan Lam told Australian media, including CarExpert, in Sydney.

"We actually think there’s an opportunity to capitalise on the more off-road-oriented market without necessarily getting into a ladder-chassis rugged SUV.

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"There’s going to be consumers who traditionally might want a ladder-frame SUV, but also want a car that’s got a few more of the benefits of a monocoque SUV in terms of day-to-day drivability."

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Aussie adventurers have traditionally favoured vehicles such as the Ford Everest, Toyota Prado and Isuzu MU-X for off-road duties, all of which offer body-on-frame construction and four-wheel drive systems with selectable low-range gearing.

The XRT Pro ticks neither of those boxes, instead using monocoque underpinnings and an on-demand all-wheel drive system.

However, Hyundai hopes to tempt off-road enthusiasts with a one-inch suspension lift, all-terrain tyres and an electronic limited-slip rear differential, among other upgrades it says help bridge the gap between "a traditional 4WD and an all-wheel drive SUV".

Meanwhile, Hyundai still sees the XRT Pro appealing to existing monocoque SUV buyers who want more off-road capability, rather than solely traditional 4WD customers.

Beyond its off-road upgrades, the XRT Pro also spruiks a greater braked towing capacity of 2200kg – up from the standard Palisade's 2000kg limit, but still well short of the 3500kg claimed by large off-road SUV rivals.

"There will be buyers who want the [extra] towing capability and... others who want the off-road capability," said Mr Lam of the XRT Pro.

"This is a step in the water for us. We're trying to see what we can do with this model."

Despite Hyundai's ambitions, the Palisade XRT Pro itself is expected to remain relatively niche, accounting for around 10 per cent of Palisade sales.

Supplied Credit: CarExpert

The arrival of the Palisade XRT Pro forms part of a broader plan for Hyundai to expand the XRT brand in Australia.

XRT Pro versions of other larger Hyundai SUVs are expected to follow, along with XRT appearance packages for models that are unlikely to benefit from mechanical off-road upgrades.

MORE: Explore the Hyundai Palisade showroomMORE: Hyundai plans to expand XRT off-road range in Australia