Hyundai is developing an all-new 1.2-litre turbocharged gasoline direct injection (TGDi) engine that will play a pivotal role in powering its future hybrid and compact crossover models. The new four-cylinder powertrain is being designed for high fuel efficiency and compatibility with electrified architectures, aligning with the company’s broader shift toward multi-powertrain offerings across the mainstream segment.

1. New Hyundai 1.2-litre 4-cyl turbo-petrol engine to be used in hybrid powertrains
2. The engine will likely be used in the next gen Creta, Venue, and more models
3. It may be paired with either a dual-clutch auto or e-CVT gearbox

New Hyundai 1.2-litre turbo-petrol engine details

Could be integral to Hyundai's future hybrid powertrains

Sources indicate that the new 1.2-litre Kappa engine is likely to debut in a new-generation crossover (internally codenamed BC4i, globally known as the Bayon) slated for launch in the second half of 2026, before being adapted for use in upcoming strong hybrid models. This 1.2-litre TGDi unit may become the foundation of Hyundai’s hybrid portfolio in India, where cost-sensitive buyers demand a fine balance of performance, mileage, and affordability.

While Hyundai already offers 1.0-litre and 1.5-litre turbo-petrol engines in India, the new 1.2-litre motor is aimed at bridging the gap between the two - offering more torque and drivability than the 1.0 turbo, while being more compact and fuel-efficient than the 1.5 unit. Importantly, it’s being engineered for strong hybrid compatibility, with a focus on integration with battery-assisted drivetrains.

Hyundai's 1.2-litre TGDi to compete against Maruti's Z12E unit

Industry insiders suggest that Hyundai's decision to invest in this mid-capacity turbo-petrol motor stems from strategic benchmarking. The company’s biggest rival, Maruti Suzuki, has developed a 1.2-litre three-cylinder engine, which is set to become the core engine for the Japanese carmaker in the coming decade.

Hyundai Motor Group appears to be taking a similar route, aiming for widespread adoption across multiple models under both the Hyundai and Kia brands. The 1.2-litre TGDi engine is expected to power future updates of the Venue, i20, and Bayon, as well as select models priced between Rs 15 lakh and Rs 20 lakh.

Upcoming Hyundai hybrid models in India

Next-gen Creta hybrid may use 1.2-litre turbo-petrol engine

While Hyundai has officially confirmed its plans to bring hybrid vehicles to India, it has not yet announced timelines. Sources say the new-generation Creta, codenamed SX3, and the full-size SUV Palisade, codenamed Ni1i, are both likely to get hybrid variants. The Creta may feature the 1.2-litre powerplant, while the Palisade may be paired with a larger engine to suit its kerb weight and proportions.

Transmission options may include DCT or e-CVT

Sources also point out that the 1.2 TGDi engine is likely to be manufactured in India, with a high degree of localization planned to ensure price competitiveness. It may be paired with either a dual-clutch automatic transmission (DCT) or e-CVT, depending on application, and will be compliant with upcoming CAFE 3 and BS7 emission and efficiency norms.

With the government holding firm on GST rates for hybrids and no immediate tax parity with EVs in sight, Hyundai’s hybrid strategy will depend heavily on cost control and localization - something the 1.2 TGDi engine is expected to facilitate.

In short, the development of the 1.2L TGDi is a crucial enabler in Hyundai’s upcoming product and powertrain roadmap, and a clear signal that the Korean automaker is preparing to compete head-on with Maruti-Toyota’s hybrid dominance in the years ahead.