Hyundai has pledged to return to affordable performance vehicles, and is set to soon unwrap a new petrol-powered i20 N hot hatch.

The previous performance version of the i20 was launched in 2021 as a rival to the Ford Fiesta ST, Mini Cooper S and Volkswagen Polo GTI - with 201bhp, a six-speed manual gearbox and a mechanical limited slip-differential. 

It served as the entry point to a performance line-up that also included the larger i30 N, and later the electric Ioniq 5 N and Ioniq 6 N - but was taken off sale after just three years as Hyundai moved away from petrol sports cars.

But now, the comeback is on, as Hyundai's global R&D boss Manfred Harrer confirmed plans to "bring back entry cars on the N line-up" as a means of broadening the brand's appeal with younger buyers. 

"An i20 N for Europe is a must," he said, because "the gap is too big" between Hyundai's previous petrol N models and their larger, much more powerful electric successors, which start at around £65,000 in the UK.

"We need this entry-level back for our fans," Harrer said, adding: "We are working intensively to do this sooner rather than later".

A new version of the i20 N would face off with a much smaller field of rivals than did its predecessor, with the Cooper S standing as the only petrol hot supermini left on sale, other brands having backed out of this space in pursuit of reduced emissions. 

It would, though, be a natural alternative to a growing array of small hot EVs, including the Alpine A290, VW ID Polo GTI and Peugeot E-208 GTI. 

Prototypes of the new hot hatch are already testing, Harrer said, and a launch is "not so far out". 

He wouldn't be drawn on any specifics of the new model, but said it would make sense to "use existing technology" as its basis, hinting at power coming from a version of the 1.6-litre four-cylinder hybrid that features in Hyundai's more mainstream models.

He suggested that the powertrain would, though, be heavily tweaked for performance: "I want to go to the Nürburgring and do really successful lap times - better than the existing one.

"But you have to work on the battery management system to get this done."

Harrer also said that Hyundai is investing in making sure the new model apes the character of its pure-petrol predecessor: "It feels sporty - don't worry about that."

A new generation of the Hyundai i20 is being primed for an imminent launch in Europe, and will likely be derived from the new Brazilian-market car that was revealed last week - with a chunkier, higher-riding silhouette than the current car, and a completely new interior. Hyundai has not confirmed how closely related Europe's new i20 will be, nor given any indication of timings for the standard car or a performance version.

Confirmation of the i20 N's comeback comes after N division boss Joon Park said last year that the performance sub-brand would not pursue an all-EV line-up.

"The problem that we have is that there is a perception from the media and our fans that Hyundai N is only focusing on the EV world, which is not true,” he said.

"We are not limiting ourselves to EVs."