
Hyundai's Next-Generation Hybrid System Increases Fuel Efficiency by 45% | Carscoops
The hybrid powertrain is set to be included in Genesis models starting in 2026.
Hyundai's new hybrid powertrain promises enhancements in both performance and fuel efficiency. This system pairs 1.6- and 2.5-liter turbo engines with an innovative dual-motor transmission, making its debut in the redesigned Palisade before making its way to Genesis.
Hyundai Motor Group has unveiled their next-generation hybrid powertrain, which offers improved performance and fuel economy, as well as various configurations.
This powertrain incorporates a new transmission featuring two integrated electric motors. One motor is responsible for starting, energy generation, and propulsion assistance, while the other handles propulsion and regenerative braking. According to Hyundai, utilizing two motors is more effective than one, as it enhances power, performance, and fuel efficiency, while also ensuring smooth shifting along with reduced noise and vibrations for a more refined driving experience.
The transmission can be paired with various engines, with combined outputs expected to range from the low 100 PS (99 hp / 74 kW) to the mid 300 PS (296 hp / 221 kW) range.
The first next-gen hybrid system will utilize a turbocharged 2.5-liter engine, which will be succeeded by a 1.6-liter turbo system. Although specifics were limited, the company highlighted that the 2.5-liter engine boasts improved cylinder flow and a “high-efficiency cycle optimized for hybrids,” complemented by new pistons and an upgraded fuel injection system.
Additionally, the tasks of starting and generating energy have been integrated into the transmission, which minimizes power losses. Consequently, drivers can anticipate increased efficiency and decreased fuel consumption.
In the Palisade, the 2.5-liter hybrid engine generates 329 hp (246 kW / 334 PS) and 339 lb-ft (460 Nm) of torque, representing a 19% power increase and 9% torque enhancement over the standard 2.5-liter turbo. More significantly, the hybrid version provides approximately a 45% boost in fuel efficiency.
The forthcoming 1.6-liter hybrid will be featured in an unnamed mid-size SUV, with an expected fuel economy improvement of over 4%. Torque output is anticipated to rise by 10 lb-ft (13 Nm), which should enhance acceleration.
Hyundai’s electrification initiatives extend beyond the hybrid powertrain, as the company has also introduced an e-AWD system. This system includes a rear-mounted motor to enhance all-weather traction and performance.
Additionally, Hyundai revealed e-Handling 2.0, Electrification-Evasive Handling Assist, e-Ride 2.0, Stay Mode, V2L, and Smart Regenerative Braking. The latter features draw inspiration from electric vehicles, with Stay Mode utilizing the battery to operate convenience functions—such as air conditioning and infotainment—without needing to start the vehicle. Furthermore, users have the ability to charge and power external devices, making hybrids convenient for job sites or tailgating.
The Hyundai Motor Group plans to broaden their hybrid range, with the new powertrains expected to feature in vehicles ranging from compact cars to luxury models, including offerings from Hyundai, Kia, and Genesis.
Regarding Genesis, the automaker intends to launch a 2.5-liter turbo hybrid system for rear-wheel drive models in 2026, gradually incorporating it into their entire lineup.



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Hyundai's Next-Generation Hybrid System Increases Fuel Efficiency by 45% | Carscoops
The hybrid powertrain will also be available on Genesis models beginning in 2026.