With its potent powertrain, fun handling, and aggressive styling, the venerable Hyundai Veloster N is an affordable and worthy rival to established hot hatches like the Volkswagen Golf GTI and Honda Civic Type R. It's been so well received that Hyundai is looking to expand its range with N performance variants of the Kona crossover and Elantra sedan. But before then, the Hyundai Veloster N has been updated for the 2021 model year with a new transmission option and an upgraded cabin.

While the 2020 Hyundai Veloster N was only available with a six-speed manual, the updated 2021 model is now offered with an eight-speed wet dual-clutch transmission for improved acceleration and efficiency. Developed in-house by Hyundai N engineers, the wet N dual-clutch transmission uses oil to "significantly improve lubrication and cooling performance."

With the new N Grin Shift mode, peak torque is increased by seven percent from 260 lb-ft to 278 lb-ft by allowing temporary turbocharger over-boost and maximizing transmission response.

An N Power Shift mode is also activated when the hot hatch accelerates with more than 90 percent throttle demand, lessening torque reduction between upshifts. With the new DCT transmission, the Hyundai Veloster N's 0-62 mph time drops from 5.8 seconds to 5.6 seconds. Hyundai's N Track Sense can also detect when the road conditions are ideal for "optimal for dynamic driving" and optimizes performance by selecting the right gear and shift timing automatically. Lower gears are held longer to provide better acceleration out of corners. If the Veloster N is driven more aggressively on a track, it will use the full range of available engine RPM to maximize performance.

These settings can be configured in the Veloster N's improved infotainment system. Inside, the cabin has been updated with new N Light Sport Seats wrapped in cloth and leatherette upholstery. According to Hyundai, these seats are thinner and 4.4 pounds lighter. An illuminated N logo has also been added to the upper side of the backrest.

New standard driver assists for the 2021 Veloster N include a forward collision-avoidance assist, lane following assist, lane keeping assist, driver attention warning, blind spot collision-avoidance assist and rear cross-traffic collision warning.

The 2021 Hyundai Veloster N will arrive in dealers this October. Pricing will be announced closer to the on-sale date. The regular Hyundai Veloster, on the other hand, remains unchanged for the 2021 model year.