The 2.0-litre version of the R-Engine outperforms any competitive offering, and will enter production next year to make its first appearance in the 2010 Tucson and Sonata models.
With power output of 135kW and 392Nm, the 2.0-litre unit eclipses similar offerings from Audi, BMW and Mercedes.
"R proves Hyundai's Diesel development capabilities really are world-class. With Diesels becoming cleaner and more fuel efficient all the time, there's a growing demand for Diesel powerplants worldwide and Hyundai is well positioned to supply the market with the very best Diesel technology," said Dr. Hyun-Soon Lee, president of the Corporate Research and Development Division.
A 2.2-litre version provides even more performance with 147kW and 436Nm, and could find its way into a series of diesel performance cars in the Hyundai range.
The R-Engine benefits from the third generation common rail system developed by Bosch whose piezo-electric injectors deliver fuel at 1800 bar for an unprecedented degree of accuracy and control.
The all-aluminium R-Engine is fitted with a 16 valve dual overhead camshaft which is driven by an internal steel silent timing chain.
For reduced vibration and lower booming noise, the R gets a lower balancer shaft which has been encased in stiffened ladder frame housing for increased rigidity.
The R-Engine line-up is fitted with a lose-coupled Diesel particulate filter plus highly efficient exhaust gas recirculation with by-pass valve to meet strict Euro 5 emissions regulations.
The R-Engine is the result of an investment of over AUD$285million and an engineering team of 150 personnel.
Over 500 prototype engines were built during the 42 month development period where they were subjected to exhaustive testing under all imaginable environmental conditions.
The R-Engine brings Hyundai's Diesel engine family fully up-to-date as it joins the U-Engine (1.1 litre, 1.4 litre and 1.6 litre), the A-Engine (2.5 litre) and S-Engine (3.0 litre V6).