After a burst of enthusiasm and commitment to developing fully electric powertrains (with some even declaring that they would end production of internal combustion engines), it seems that many automakers are now giving more attention to developing better hybrid electric vehicle (HEV) powertrains.
HEV technology has been around since the 1990s and is fairly matured, with costs having come down due to substantial volumes of HEVs being produced today. It is also an easier technology to promote as it does not require charging stations (with the exception of plug-in HEVs or PHEVs). Thus HEVs are more suitable for many regions in this transition period, with some effect of lowering emissions and reducing fossil fuel depletion.
The Hyundai Motor Group recently presented its next-generation hybrid system with innovative and electrification technologies to improve performance and fuel efficiency. With this advanced system, the Group plans to offer a range of industry leading new products within the hybrid vehicle segment. The significantly enhanced technology is expected to improve the driving and ownership experience of future Group products while delivering customer-focused benefits.
“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 Centre, Hyundai Motor Group. “We will continue to develop innovative technologies that actively utilize electrification capabilities during the transition to EVs, providing customers with eco-friendly vehicles that offer superior performance.”
The next-generation hybrid system features a new transmission with two integrated motors that can be paired flexibly with a range of internal combustion engines, allowing for optimized performance and fuel efficiency across a range of vehicle classes from the low-100 ps range to the mid-300 ps level.
The newly developed transmission includes a new P1 motor that handles starting, battery energy generation and energy deployment to assist propulsion. The transmission’s P2 driving motor is responsible for propulsion and regenerative braking. This integrated dual-motor set-up improves power, performance and fuel efficiency while achieving smooth shifting and reduced noise and vibrations for a more refined driving experience.
The system also integrates useful features commonly found in the Group’s EV models such as Stay Mode, Vehicle-to-Load (V2L) functionality and Smart Regenerative Braking.

Besides a newly developed 2.5-litre turbocharged petrol engine, the system is also designed for a new, next-generation 1.6-litre turbocharged engine. With the new hybrid powertrain, there will be improved fuel efficiency by more than 4% in a mid-size SUV compared with previous model. The maximum rated torque output will also rise from 367 Nm to 380 Nm, improving acceleration and response.
With the expanded system output coverage, the hybrid powertrain line-up will increase from three models to five, with the latest 2.5 turbo hybrid powertrain making its debut in the all-new Palisade hybrid, which began mass production this month.

The Group plans to introduce a rear-wheel-drive 2.5 turbo hybrid system in 2026 and aims to gradually expand its hybrid technology to the Genesis luxury brand by applying this powertrain to key models over time.