The 2021 Hyundai Veloster N lives in stark contrast to what the Korean manufacturer was producing just a few years ago. There’s liveliness and a level of charisma in the Veloster N that seems to have faded from most hot hatchbacks on sale today. Don’t let the front-wheel-drive and light blue paint fool you, Hyundai put all the right resources into this little car because it will, in fact, give the Volkswagen GTI a serious run for its money.
When the Hyundai Veloster N burst onto the scene in 2018, it took some in the U.S. by surprise. The finely-tuned, well-handling performance hatchback seemingly came out of nowhere. When in truth, the rest of the world was already getting a taste of Hyundai’s N performance in 2014 witnessing its capabilities in the World Rally Championship. That same year, Hyundai poached former head of the BMW M performance division Albert Biermann and made him Executive Vice President. Then, in 2018 officially established the Hyundai High-Performance Vehicle & Motorsport Division and named Biermann as President. It was a very audacious move for Hyundai, but it was the right move.
It’s no secret that up until 2018 most of Hyundai’s lineup was, shall we say, uninspiring. Its cars were the equivalents of an automotive palate cleanser. They were cars that got you from A to B and that was it. For those of us who demand more than the bare minimum, the hiring of Biermann proved to be a blessing. His influence is front and center in the 2021 Veloster N.
Under the hood, there’s a 2.0-liter turbocharged 4-cylinder that sends 275 horsepower and a maximum 278 lb-ft of torque to the front wheels through either a six-speed manual or dual-clutch transmission. All that torque comes in at a lowly 1400 RPM but is managed nicely by an electronic limited-slip differential. With only 3,247 lbs worth of car to worry about and super sticky Pirelli P Zeros holding the road, the Veloster N will go from 0-60 MPH in 4.8 seconds and pull nearly 1g in the turns.
With that level of kick and at $34,755 (as tested), that puts the Veloster squarely in Volkswagen GTI territory. The only problem is, the Hyundai beats the GTI in almost every way. The VW is softer, easier to use day-to-day in a city setting, but that’s about where it ends. For all that the GTI has proclaimed to be over years, the Hyundai Veloster does it better.
The Performance Blue version I piloted for a week was equipped with the dual-clutch transmission and while I was disappointed to not get one with a stick shift and three pedals, the paddle shifting through the gears on the Veloster N was still incredibly entertaining. With a redline just shy of 7,000 RPM and a power curve that peaks at 6,000 RPM, it was all too tempting to stretch each gear as far as it would go before clicking to the next.
Backcountry roads are where the Veloster N is most at home. On city streets and highways the Veloster N rides fairly stiff but otherwise, it handles as calmly as any other hatchback. But, as soon as the road starts to twist and turn, the engine, chassis and transmission come alive. In Sport mode, the steering becomes nicely weighted, the suspension firms up even more and the exhaust opens, letting loose an addictive growl accompanied by the requisite crackle and pops on downshifts and throttle lifts. There’s also an Eco mode, but I never spent much time using it since watered down the best characteristics of the car.
There’s a custom N mode as well where you can tailor all the settings individually and to your liking. Curiously, the drive mode buttons on the steering wheel look oddly similar to the counterparts in current BMW M cars. Maybe an unofficial, not-so-subtle friendly nod to Biermann’s previous employer.
If there’s one thing glaringly clear after spending a few days behind the wheel of the Veloster N, it’s Biermann’s experience and influence. And it goes far beyond buttons on the steering wheel. Hyundai has slowly gained the confidence to build a car like the Veloster N through proper research and development, but Biermann’s hiring most likely brought an enthusiasm long stifled under the seriousness of the BMW way of life.
The Veloster N’s handling is perfectly tuned to the point it feels more like an all-wheel-drive car. Devoid of overly complicated infotainment systems crowded by an excess of switchgear, the Hyundai’s cabin feels very driver-focused, akin to BMW’s of the early 2000s. You get the sense Biermann wanted to help create a front-wheel-drive M car BMW never would.
As a result, the upstart Veloster N has emerged as an exciting alternative to the GTI. It should be said, the GTI is still a wonderful well-round car in every respect. However, for now, the VW is living in the Hyundai’s shadow. A plot twist no one saw coming.
