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  • Hyundai’s new hybrid powertrain offers improvements in performance and fuel efficiency.
  • The system combines 1.6- and 2.5-liter turbo engines with a new dual-motor transmission.
  • The new powertrain debuted on the redesigned Palisade and will reach Genesis in 2026.

The Hyundai Motor Group has detailed their next-generation hybrid powertrain, following its debut in the redesigned Palisade. It promises improved performance and fuel efficiency as well as multiple configurations.

The powertrain features a new transmission with two integrated electric motors. One handles starting, energy generation and propulsion assist, while the other is tasked with propulsion and regenerative braking. Hyundai says the combination of two motors is better than one because it “improves power, performance, and fuel efficiency while achieving smooth shifting and reduced noise and vibrations for a more refined driving experience.”

More: 2026 Hyundai Palisade Drops V6 For Four-Cylinders And Hybrid Efficiency

The transmission can be paired to an assortment of different engines and Hyundai hinted we can expect combined outputs ranging from the low 100 PS (99 hp / 74 kW) range to the mid 300 PS (296 hp / 221 kW) region.

The first next-gen hybrid system uses a turbocharged 2.5-liter engine and it will be followed by another system using a 1.6-liter turbo. The company didn’t say much about them, but noted the 2.5-liter engine features enhanced cylinder flow and a “high-efficiency cycle optimized for hybrids.” They’re joined by new pistons and an upgraded fuel injection system.

The starting and generation tasks have also been transferred to the transmission, minimizing power losses. All of this means drivers can expect greater efficiency and reduced fuel consumption.

In the Palisade, the 2.5-liter hybrid engine produces 329 hp (246 kW / 334 PS) and 339 lb-ft (460 Nm) of torque. That’s 19% more power and 9% more torque than the standard 2.5-liter turbo. More importantly, the hybrid offers a roughly 45% improvement in fuel efficiency.

The upcoming 1.6-liter hybrid will be offered in an unnamed mid-size SUV and will improve its fuel economy by more than 4%. The torque output will also climb by 10 lb-ft (13 Nm), which promises to improve acceleration.

The electrification efforts don’t stop with the hybrid powertrain as Hyundai also showcased an e-AWD system. It features a rear-mounted motor to provide all-weather traction as well as improved performance.

Furthermore, the company introduced e-Handling 2.0, Electrification- Evasive Handling Assist, e-Ride 2.0, Stay Mode, V2L, and Smart Regenerative Braking. The latter few draw inspiration from EVs and Stay Mode uses the battery to run convenience features – such as air conditioning and the infotainment system – without starting the vehicle. Users can also charge and power external devices, which could make the hybrids ideal for work sites or tailgating.

 Hyundai’s Next-Gen Hybrid System Boosts Fuel Efficiency By 45%

The Hyundai Motor Group will expand their hybrid lineup and the new powertrains will be found in everything from compact to luxury cars. These will include models from Hyundai and Kia as well as Genesis.

Speaking of the latter, the automaker plans to introduce a 2.5-liter turbo hybrid system for rear-wheel drive models in 2026. It will then slowly spread across the Genesis lineup.

 Hyundai’s Next-Gen Hybrid System Boosts Fuel Efficiency By 45%