The Hyundai-Kia Automotive Group will develop a 3.0-liter turbo gasoline direct injection engine. The carmaker said it plans to mount the T-GDI engines on the Grandeur and Genesis sedans to boost their fuel efficiency and horsepower by more than 10 percent.

Hyundai-Kia made the announcement on Tuesday at its annual International Powertrain Conference. The group also plans to broaden its line-up of T-GDI engines.

"Demand for eco-friendly, high-efficiency engines and transmissions is rising among consumers around the world so we plan to speed up development of cutting-edge powertrain technologies," a press release quoted Hyundai executive Kim Hai-jin as saying.