Based on the success of the 2021 Hyundai Veloster N, enthusiasts are excited to see what else is in store from Hyundai's N division. The company will soon introduce N variants of the Elantra sedan and Kona crossover, creating a trio of affordable, performance-minded vehicles. Both the Elantra N and Kona N will borrow the Veloster N's 2.0-liter turbocharged four-cylinder engine, but the N division is reportedly working on a new powertrain that may replace this setup.

South Korean newspaper Kyunghyang Shinmun reports that the N Division is developing a new 2.3-liter four-cylinder. This new four-banger is expected to use the same cylinder head and cylinder block rigidity enhancement and head gasket optimization developed in its World Rally Championship and TCR Touring Car racing.

Apart from offering greater durability than the current 2.0-liter engine, this 2.3-liter mill should develop more power. The Veloster N already produces a healthy 275 horsepower and 260 lb-ft of torque, going out to the front wheels through either a six-speed manual or new-for-2021 eight-speed dual-clutch.

Reports say the 2.3-liter engine will hit its redline at 7,000 rpm, beating the 2.0-liter's 6,750 rpm peak. This may not sound like a huge increase, but a 7,000 rpm redline is substantial for a modern turbocharged engine. For reference, the Honda Civic Type R's engine also revs to 7K.

It remains unclear where Hyundai first plans to deploy this new engine in a production car. The RM19 prototype seems like an ideal candidate, with some rumors claiming the new engine will sit mid-ship with a hybrid motor, producing a total of 390 horsepower. We'd also like to see the N Division share this new engine with fellow Hyundai Motor Group brand Kia. Kia could make use of the engine in a future Stinger replacement or a future sports car. Hyundai could reveal more information to confirm these rumors sometime in 2021.