SHERIDAN, WYOMING – April 22, 2025 – Hyundai Motor Group has introduced a transformative next-generation hybrid powertrain system, marking a significant milestone in the evolution of hybrid technology. Unveiled during the Group’s exclusive ‘Next-Gen Hybrid System Tech Day’, this cutting-edge innovation aims to redefine fuel efficiency, power performance, and the overall driving experience.
Bold Step Forward in Electrified Powertrain Technology
Unveiling a system that combines flexibility, power, and refinement
The new hybrid system features a state-of-the-art transmission with dual integrated motors (P1 and P2) that can pair seamlessly with various internal combustion engines. This setup offers a flexible application across vehicle classes—from sub-compact to large SUVs—ensuring optimized power delivery and increased fuel efficiency.
“We have developed an innovative new hybrid system that integrates our long-accumulated engine, transmission and hybrid system development experience with the electrification technology applied to our world-class electric vehicles,” said Dong Hee Han, Executive Vice President and Head of Electrified Propulsion Test Center, Hyundai Motor Group. “We will continue to develop innovative technologies that actively utilize electrification capabilities during the transition to EVs, providing customers with vehicles that offer superior performance.”
Next-Gen Engine Design and Advanced Motor Integration
Efficiency gains through smart engineering
The new 2.5-liter turbo hybrid engine introduces advanced thermodynamic cycles and enhanced fuel injection strategies, achieving up to a 2.9% efficiency improvement. By utilizing an ‘over-expansion cycle’ and optimized piston and fuel injection designs, Hyundai minimizes energy losses while maximizing power output.
By integrating the newly designed P1 motor to manage engine starts and battery energy generation, the system ensures smoother, faster transitions and improved drivability. The parallel motor structure enhances power while reducing vibrations and shifting delays—contributing to a refined ride.
Performance That Speaks Volumes
Impressive gains in fuel economy, torque, and system output
In the new Palisade hybrid, this system achieves a maximum fuel efficiency of 14.1 km/l, maximum system output of 334 PS, and 460 Nm of torque—translating to a 45% improvement in fuel efficiency and 19% more power over comparable internal combustion engines.
The upcoming 1.6-liter turbo hybrid system further raises the bar, increasing torque from 367 Nm to 380 Nm and offering a more responsive acceleration in mid-size SUVs.
Smarter, Smoother, and More Convenient
EV-inspired features now available in hybrids
New electrification features like Stay Mode, Vehicle-to-Load (V2L), and Smart Regenerative Braking bring electric vehicle convenience into the hybrid space. Stay Mode allows occupants to use air-conditioning and multimedia systems for up to an hour without running the engine. V2L offers 3.6 kW of power to external devices—even when the engine is off.
“Electrified” Handling and All-Wheel Drive Technologies
Advanced controls for superior stability and ride comfort
With the introduction of electric all-wheel drive (e-AWD) and smart motion control systems like e-VMC 2.0, e-Handling 2.0, and e-Ride 2.0, Hyundai enhances driving performance across diverse conditions. These systems manage torque independently across the front and rear axles, optimizing stability during cornering, evasive maneuvers, and speed bump crossings.
A Vision for the Future
Expanding hybrid offerings across brands and segments
The Group’s new hybrid system will debut in the Palisade and expand to more Hyundai and Kia models, with a rear-wheel-drive 2.5 turbo hybrid scheduled for release in 2026. Genesis luxury models will also benefit from this powertrain as Hyundai Motor Group expands its hybrid lineup from three to five systems across varying vehicle classes.
To learn more, visit Hyundai Motor Group.