Hyundai Developing New 1.2-Litre Turbo-Petrol Engine For Future Hybrid Models In India

Hyundai to launch new 1.2-litre turbo-petrol engine for hybrids in India

Hyundai is working on an all-new 1.2-litre turbocharged gasoline direct injection (TGDi) engine that will play a central role in its future hybrid and compact SUV line-up for India. Designed with an emphasis on fuel efficiency and electrification, the new powertrain marks a strategic move by the automaker toward localised, cost-effective hybrid solutions.

The upcoming 1.2-litre four-cylinder TGDi engine, internally part of the Kappa family, is being engineered to integrate seamlessly with hybrid systems. It is expected to debut in the second half of 2026, powering a next-generation crossover (internally codenamed BC4i), which is globally known as the Hyundai Bayon. Over time, the engine is also likely to be introduced in updated versions of popular models like the Venue, i20 and next generation Creta.

This new engine is positioned to fill the gap between Hyundai’s current 1.0-litre and 1.5-litre turbo-petrol offerings. It aims to offer better drivability and torque than the 1.0-litre unit, while being more compact and fuel-efficient than the 1.5-litre variant. Importantly, the 1.2 TGDi is being tailored for compatibility with strong hybrid setups and battery-assisted drivetrains.

Hyundai’s decision to develop this engine locally underscores its focus on controlling production costs and complying with upcoming emission and efficiency norms, including CAFE 3 and BS7 standards. The engine is likely to be offered with either a dual-clutch automatic (DCT) or an e-CVT, depending on the model application.

In terms of competition, the 1.2 TGDi appears to be Hyundai’s response to Maruti Suzuki’s newly developed Z12E three-cylinder unit, which is set to underpin Maruti’s and Toyota’s hybrid portfolios in India. With this move, Hyundai is preparing to challenge Maruti-Toyota’s growing presence in the mass-market hybrid space.

Beyond the compact crossover segment, the engine may also feature in hybrid versions of larger models, such as the upcoming next-generation Creta (codenamed SX3). However, larger vehicles like the Palisade are expected to utilise more powerful engines better suited to their size and weight.

As the Indian government maintains current GST rates for hybrids and continues to incentivise EVs more aggressively, Hyundai’s hybrid push will rely heavily on localisation and efficiency. The new 1.2 TGDi engine is expected to be a key enabler in keeping hybrids competitively priced while broadening Hyundai’s powertrain portfolio in the years ahead.