Hyundai’s Next-Gen Hybrid System Could Be the Next Big Thing
Hyundai, which plans to double its hybrid offerings over the next few years, has unveiled a brand new hybrid system that aims to set benchmarks for power and fuel economy.
The Korean automaker has employed its extensive experience not only with hybrid powertrains, but also with motor and battery control technology accumulated through development of its E-GMP electric vehicle platform.
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The next-generation hybrid system, which will be applied to a variety of Hyundai, Kia and Genesis models, features a new transmission with two integrated e-motors that can be paired with a range of internal combustion engines—either naturally aspirated or turbocharged, regardless of displacement.
One electric motor handles starting, battery energy generation and energy deployment to assist propulsion, while the other is responsible for propulsion and regenerative braking.
According to Hyundai, this integrated dual-motor setup improves power (up to around 350 hp), performance and fuel efficiency while achieving smooth shifting and reduced noise and vibrations.
What’s more, the new hybrid system also integrates convenience features commonly found in the automaker’s EVs, such as Vehicle-to-Load (V2L) functionality and Smart Regenerative Braking. V2L offers a maximum output of 3.6 kW, allowing users to charge and power external appliances and personal tech devices.
When it comes to the gas engine, Hyundai says improvements have been made to the combustion process, compression ratio, piston design and more.
New 2026 Palisade Leads the Way
The first powertrain to use the next-generation hybrid system is built around a newly developed 2.5-litre turbo engine. It can be found in the fully redesigned 2026 Palisade, generating 329 hp and 339 lb-ft of torque through a six-speed automatic transmission. Combined fuel consumption has yet to be made official, though it should land at around 7 L/100 km. That’s a major improvement from the outgoing, V6-powered Palisade (291 hp, 262 lb-ft, 11.1 L/100 km).
A new 1.6-litre turbo hybrid powertrain will also be available. Compared with the current Sante Fe, for instance, Hyundai claims fuel efficiency is improved by more than four percent, while torque is increased from 271 lb-ft to 280 lb-ft.
Alongside the next-generation hybrid system, the automaker will integrate advanced electrification technologies such as electric all-wheel drive (e-AWD) where an additional driving motor is mounted on the rear axle. It also plans to introduce a rear-wheel-drive 2.5L 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.