In 2002, Hyundai introduced the Terracan as a replacement for the Galloper range based on the first generation of the Mitsubishi Pajero/Montero.
With little knowledge about developing a 4x4 vehicle from the ground up, Hyundai considered it could strip to the chassis a Galloper and give it a new bodywork. Also, it replaced the engines and improved its transmissions, but basically, it was more or less a refreshed Pajero/Montero. Fortunately, that chassis was excellent for its times and continued to be very good even after two decades.
The Korean designers tried to hide the Japanese model's links by introducing smoother lines and softened edges. Along with the facelift, the Terracan received rectangular fog-lights instead of the round ones offered before. In the back, Hyundai introduced a new design for the taillights.
Inside, the Terracan was already recognized as a spacious vehicle, mostly for four passengers. Three people could have to feel cramped in the back due to the transmission tunnel and car's interior width; a small tribute paid for the old chassis. Its huge trunk was easy to access from behind via a wide liftgate or inside the car, thanks to the 60/40 split-folding rear bench. Depending on the trim level and options, the steering wheel received a few buttons for the audio system. The carmaker worked hard to integrate a stereo-cassette and CD-player on the center stack, replacing the older stereo's aftermarket-look.
Under the hood, Hyundai offered a choice of two engines: a 3.5-liter gasoline V-6 and a 2.9-liter turbo-diesel. Both were paired to a 4x4 system and a high-low range for the transfer case.