Hyundai is developing gas-electric car to diversify its eco-friendly vehicle line-up which will compete against Toyota's Prius.
The company already planning to sell the industry's first fuel cell models in California and it is expected to start selling battery-powered electric vehicle by 2016.
The new gas-electric car will be Hyundai's first "dedicated" hybrid car and it is expected to be marketed as a hybrid.
Reuters reported Hyundai Motor CEO Kim Choong saying: "We will take the lead in the future by raising the competitiveness of our environment-friendly cars like hybrid-only cars, plug-in hybrid cars and cell hydrogen cars."
Reports suggest that Ford is also planning a dedicated hybrid model which is expected to be released as a 2019 model.