• Hyundai announced their plans to go head-to-head with Toyota's Prius.

Hyundai announced their plans to go head-to-head with Toyota's Prius. (Photo : Reuters)

South Korean automotive manufacturer Hyundai was recently reported to be working on a new hot-hatchback car which is said to be unveiled at the Frankfurt Auto Show. Additionally, the car is believed to house a 300-horsepower engine.

According to Insider Car News, the Hyundai i30 was developed under the newly formed N performance division. The team was able to develop a turbocharged 2.0-liter engine modeled from the mid-engine RM15 concept. The engine is believed to have a power output of 300-horsepower and a torque recorded at 295 pound-to-feet.

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Reports claim that the hatchback i30 will be released with a standard all-wheel drive powertrain. The powertrain was the product of Hyundai's experience in its rally-racing program. If this report is true, the new car from Hyundai will pose a significant threat to the Volkswagen Golf R and the Ford Focus RS.

The upcoming 300-horsepower i30 is primarily aimed for the European market with extensive focus on the United Kingdom, German and French region. Many analysts said that widespread demand of fast five-door cars in the region persuaded Hyundai to put concentrate in those regions.

Additionally, the i30 developed under the N program will not be released in the United States.

Hyundai chief operating officer of its Australian arm John Elsworth said that the N program will extend to all cars within Hyundai's fleet and not just to car's aimed for the European market.

Elsworth told Go Auto, "Hopefully it will be across the entire range, not just in small cars as a hot hatch. There really is a place in this market for sporty SUVs and sporty mid-sized cars."