Sources close to Hyundai report that the Korean automaker is developing a turbocharged, high-performance version of their green-tinged Veloster coupe, to broaden their appeal to the enthusiast market while it also pitches a 40-mpg fuel-economy rating to buyers concerned with rising gas prices.

Hyundai's been clear that the Veloster is aimed at young buyers, and intended to compete against cars like VW's Golf and Honda's CR-Z. The Veloster shown at this year's North American International Auto Show featured a 138-horsepower, 1.6-liter, gasoline direct injection engine that yielded an estimated 40 miles per gallon in highway fuel economy.

This version of the Veloster may be good enough to compete against the Golf and Mazda3, but it's no match for VW's GTI or Mazda's MazdaSpeed3. Enter the rumored Hyundai Veloster Turbo, complete with a 208-horsepower variant of the of the Veloster's 1.6-liter, direct-injection in-line four.

We expect the official Veloster Turbo announcement at the upcoming New York Auto Show, but the twin-scroll turbo equipped 1.6-liter engine has already been announced. Hyundai has ambitious plans for the Veloster, so a high-performance model will certainly broaden the appeal of the three-door coupe to the tuner market.

[Hyundai Blog]

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