A recent deal signed between Hyundai and BorgWarner hints at a new electric vehicle coming from the South Korean manufacturer very soon. Auto Express unearthed early details about the battery-powered model which should go into production by mid-2023. It's not official yet but we expect some sort of announcement very soon.

From what is known so far, Hyundai will build a city electric vehicle and BorgWarner will supply a new generation electric drivetrain for it. It will be an evolution of the existing systems and will incorporate the electric motor and gearbox into one unit with an easy installation. This setup is reportedly smaller and lighter compared to the existing electric drivetrains, two essential characteristics for a small EV.

The peak output of the system, according to Auto Express, is about 180 bhp (134 kilowatts) but it is unlikely that Hyundai will use all that power for a small electric car. Instead, the South Koreans could tweak its performance thanks to a smart modular inverter to deliver around 100 bhp (74 kW), which will put the new EV on par with the existing combustion-powered Hyundai city cars.

The very compact dimensions of a city car mean there’s no space - and no need - for a large battery, and the model will most likely use a small 40-kWh battery pack. It will allow for a range of about 200 miles (322 kilometres) between charges, though a 400-volt architecture will allow for fast charging. 

At this point, it remains unclear whether the new deal means both the Hyundai and Kia brands will get a version of the new electric vehicle, though it seems like a sure bet knowing how many models are shared between the two marques. An Ioniq-branded vehicle is also possible. According to the report, the new EV will take the shape of a very small crossover.