Hyundai Is Planning a Rear-Wheel-Drive Hybrid

The new electrified tech is coming to Genesis.

Photo by: Genesis

By: Adrian Padeanu

Apr 22, 2025 at 3:13am ET

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When the new Hyundai Palisade made its U.S. debut last week, it finally addressed a long-standing gap in the lineup: a hybrid powertrain. The setup pairs a turbocharged 2.5-liter four-cylinder engine with dual electric motors, integrated into a six-speed automatic transmission, to produce a total of 329 horsepower and 339 lb-ft (460 Nm) of torque.

Interestingly, Hyundai plans to launch a rear-wheel-drive variant of the 2.5-liter hybrid in 2026. Meanwhile, the company’s luxury arm, Genesis, is also entering the hybrid space, but only select “key models” will receive electrified powertrains. While no specific vehicles have been confirmed, we can likely rule out the G70, as Hyundai’s Global Product Officer Marc Choi has hinted at a focus on larger, higher-margin vehicles.

Photo by: Hyundai

Compared to the outgoing gas engine, the new ICE is 2.9 percent more efficient. Once you factor in the hybrid components, fuel efficiency improves by an impressive 45 percent over the standard non-hybrid engine. Power also climbs significantly, with a 19 percent jump.

For the cheaper cars, Hyundai is developing a second hybrid system using a smaller 1.6-liter turbocharged engine. It boosts efficiency by 4 percent and increases torque slightly, from 271 lb-ft (367 Nm) to 280 lb-ft (380 Nm). While no models were named, we believe the likely candidate is the Tucson, as the current hybrid version produces the mentioned lower torque figure.

The Hyundai Motor Group’s hybrid range will span everything from compact to large vehicles, including entries in the luxury segment under Genesis. Combined system output will vary from the low-100 PS range to the mid-300 PS range, where 1 PS (Pferdestärke) equals 0.98 horsepower.

Hyundai next-gen hybrid tech

Source: Hyundai

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As demonstrated in the new Palisade, the dual-motor hybrid setup divides tasks: One of them takes care of starting, battery energy generation, and energy deployment, while the other handles propulsion and regenerative braking.

In related news, Hyundai has confirmed that it will continue to offer mechanical all-wheel drive, but select models will employ an e-AWD system that utilizes an electric motor on the rear axle.