Hyundai To Develop 1.2L Turbo Engine for Next-Gen SUVs; Will Also Come To India

Hyundai is developing an all-new 1.2-litre turbocharged petrol direct injection (TGDi) engine, marking a pivotal step in the company’s hybrid and compact vehicle strategy. Designed for strong hybrid compatibility and high fuel efficiency, the new powertrain is set to become a central component of Hyundai’s future offerings in India and abroad, especially in cost-sensitive segments.

The new four-cylinder TGDi engine is part of Hyundai’s evolving powertrain roadmap, reflecting the company's commitment to offering multiple propulsion options, including internal combustion, hybrid, and electric vehicles. This 1.2-litre unit is being designed to deliver a balance of performance, fuel economy, and affordability, while being adaptable to electrified architectures, notably strong hybrids.

Hyundai already retails 1.0-litre and 1.5-litre turbo-petrol engines in India. Still, this new 1.2-litre TGDi motor aims to fill a strategic gap—offering more torque and drivability than the 1.0 unit, while being lighter and more efficient than the 1.5-litre alternative. It will also be more hybrid-friendly than either of the two.

According to insiders, the engine is expected to debut globally in the second half of 2026, likely in a new-generation compact crossover (codenamed BC4i, globally known as the Bayon). After its international premiere, the engine will likely feature in several Hyundai and Kia models in India, including the next-generation Creta and Venue, both of which are core to Hyundai’s SUV portfolio. 

Hyundai’s move appears to be a direct response to Maruti Suzuki’s 1.2-litre Z12E three-cylinder petrol engine, which is expected to serve as the backbone of its hybrid strategy. Hyundai’s four-cylinder configuration, in contrast, may offer smoother refinement and stronger performance, potentially making it more appealing in the premium compact segment. 

With the 1.2 TGDi engine, Hyundai is targeting cars in the ₹15–20 lakh price band, including future iterations of the i20, Venue, and Bayon, in addition to hybrid SUVs as well as the Creta.

One of the engine’s key strengths will be its local manufacturing and high localisation levels, ensuring cost competitiveness for India. This is crucial at a time when hybrid vehicles attract higher GST rates than EVs, and tax parity appears unlikely in the short term. The company plans to pair the new powertrain with either a dual-clutch transmission (DCT) or an e-CVT, based on model requirements. 

The engine will also be compliant with upcoming CAFE 3 and BS7 emission norms, future-proofing Hyundai’s lineup as regulatory demands grow more stringent.

While Hyundai has yet to announce official launch dates, the next-generation Creta (codename: SX3) is strongly expected to feature this new hybrid-compatible powertrain. Meanwhile, the Hyundai Palisade (codename: Ni1i), which is being evaluated for a possible Indian entry, may use a larger engine suited to its size but will also feature hybrid tech.

This engine is not just a technical upgrade—it’s a strategic enabler for Hyundai’s future in India’s electrification landscape. With rivals like Maruti Suzuki and Toyota already gaining ground in hybrids, this 1.2 TGDi motor underscores Hyundai’s intent to compete head-on in the hybrid race while continuing to support petrol and electric vehicle development.

For Indian buyers, especially those eyeing subcompact and compact SUVs, the new 1.2-litre TGDi engine could offer the best of both worlds: responsive performance with excellent fuel efficiency, at a more accessible price than full EVs. It also promises better refinement and driving experience than some three-cylinder rivals.