Hyundai reveals next-generation hybrid system with improved efficiency and broader applications

The system, debuting on the 2025 Palisade, is part of Hyundai’s wider strategy to expand hybrid technology from compact to luxury models.

Ryan Fowler

April 22, 2025

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hyundai hybrid system

Hyundai Motor Group has introduced a new hybrid powertrain system designed to improve performance, fuel efficiency and refinement across a range of future models.

Unveiled at the company’s ‘Next-Gen Hybrid System Tech Day’, the new platform features a dual-motor transmission setup that integrates a P1 motor for engine starting and battery charging, and a P2 motor for propulsion and regenerative braking. The system is designed to be paired with a variety of internal combustion engines, offering a power output range from the low-100 PS level to over 300 PS.

“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 the Electrified Propulsion Test Center at 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 system’s first application is a new 2.5-litre turbocharged hybrid engine, which will debut in the Hyundai Palisade. According to Hyundai, it offers a 45% improvement in fuel efficiency, with a system output of 334 PS and 460 Nm of torque. A 1.6-litre turbo hybrid powertrain is also in development, showing a 4% improvement in efficiency for mid-size SUVs compared to previous models.

Hyundai has integrated additional features including Stay Mode, Smart Regenerative Braking, Vehicle-to-Load (V2L), and a 3.6 kW external charging capability. These are intended to bring hybrid vehicle usability closer to that of electric vehicles. The hybrid system also includes support for Electric All-Wheel Drive (e-AWD), and the next generation of Hyundai’s vehicle motion control systems.

A rear-wheel-drive version of the 2.5-litre turbo hybrid system is expected in 2026, and Hyundai says its Genesis brand will benefit from the new hybrid technology in due course.

Hyundai plans to increase its hybrid offering from three models to five, aiming to apply the new system to a wide range of vehicle types.

The Group said its development strategy focuses on delivering hybrid solutions suited to different vehicle segments and market conditions, as part of its broader electrification plans.