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Hyundai’s next-gen hybrid system boosts fuel efficiency by 45%

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Hyundai has revealed its next-generation hybrid powertrain, first debuting in the redesigned Palisade, offering significant enhancements in both performance and fuel efficiency.

The new system features a transmission with two integrated electric motors: one for starting, energy generation, and propulsion assistance, and another focused on propulsion and regenerative braking.

Hyundai claims that this dual-motor setup improves power, fuel efficiency, and driving smoothness by reducing noise and vibrations.

The powertrain can be paired with various engine options, with Hyundai hinting at outputs ranging from around 100 PS (99 hp / 74 kW) to 300 PS (296 hp / 221 kW).

The first application of the new hybrid system uses a 2.5-litre turbocharged engine, followed by a smaller 1.6-litre turbo option.

The 2.5-litre hybrid engine in the Palisade delivers 329 hp (246 kW / 334 PS) and 339 lb-ft (460 Nm) of torque—offering 19% more power and 9% more torque than the standard 2.5-litre turbo. This hybrid variant also boasts a 45% improvement in fuel efficiency.

Additionally, Hyundai plans to equip its upcoming 1.6-litre hybrid in a mid-sized SUV, offering a more than 4% boost in fuel economy, alongside a 10 lb-ft (13 Nm) increase in torque to enhance acceleration.

Hyundai’s electrification push extends beyond hybrids, with the introduction of an e-AWD system featuring a rear-mounted motor for improved all-weather traction and performance.

The company also unveiled new technologies such as e-Handling 2.0, Electrification-Evasive Handling Assist, and Smart Regenerative Braking, which were inspired by electric vehicles (EVs).

The latter allows drivers to operate features like air conditioning and infotainment without starting the engine, and even charge external devices.

Looking ahead, Hyundai and its subsidiaries Kia and Genesis will expand their hybrid powertrains across various models, ranging from compact vehicles to luxury cars.

In 2026, Genesis plans to introduce a 2.5-litre turbo hybrid system for rear-wheel-drive models, which will gradually make its way across the Genesis range.

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