Kia is developing a new turbocharged petrol engine that will underpin its next-generation internal combustion (ICE), hybrid and extended-range electric vehicle (EREV) models as part of an aggressive growth strategy targeting 4.19 million annual global sales by 2030.
Power and efficiency boost
Unveiled during Kia's 2025 CEO Investor Day, the new 2.5T-GDI is a modular turbocharged four-cylinder engine aimed at enhancing performance and thermal efficiency across multiple powertrain configurations.
Compared to the current 2.5-litre engine used in models like the Sorento and Tasman ute, the new unit promises a 12% power boost and a 5% improvement in thermal efficiency. That suggests output will climb beyond 220kW, a substantial upgrade to Kia's petrol lineup.
Torque figures haven’t been confirmed, but increases over the current 421Nm benchmark are expected.
Kia’s hybrid and EREV systems
For hybrid applications, Kia is introducing a new coaxial serial connection between the combustion engine and electric motor.
The company claims this will offer “better acceleration and a smoother transition” from electric to petrol propulsion, while also delivering a 4% bump in overall efficiency.
The 2.5T-GDI will also serve as a generator in Kia’s upcoming EREV architecture, providing electric-only drive with battery charging handled by the engine. The setup mirrors Nissan’s e-Power series hybrid system with no mechanical linkage between the engine and wheels.
What's next for Kia?
While much attention at the event centred on Kia’s North American electric ute plans, the broader message was clear: Kia is not abandoning combustion. Of its 2030 sales goal, just 1.26 million vehicles are expected to be EVs, while 1.07 million will be hybrids and plug-in hybrids. The remaining 1.86 million will still rely solely on petrol or diesel engines.
The new engine and hybrid architecture will be pivotal to Kia’s diversified powertrain rollout, which includes 15 EVs and 10 hybrid/PHEV models by the end of the decade. The Korean carmaker also aims to expand global production capacity by 17%, hitting 4.25 million vehicles annually.
This marks a strategic hedge against full electrification, allowing Kia to maintain flexibility in markets where EV adoption remains slow.