Even hyundai officials seem to have confirmed this move and the only bit they have not revealed is the pricing part but logically speaking expect it to be priced marginally higher than the existing 1.1L engine.The new 1.2L engine codes named "Kappa" is about 15bhp more powerful than the existing engine so it should be somewhere around the 80bhp tag without compromising too much on the mileage side whereas performance certainly would get a boost.
Now what has prompted this move is unknown perhaps the i20 launch has been delayed or the i20 is a bit more pricier than expected and there is a big gap in terms of pricing in the i20 and the i10 and hyundai don't have anything else in the portfolio take on the Maruti swift.With this boost in engine power perhaps hyundai is targeting the Maruti swift customer.
Hyundai are also planning to sell LPG variants across its entire line-up with the santro getting it by august 2008.The rest will get the LPG option a little later.
[Source:Economictimes ]