For 40 years the Korean automaker has been developing internal combustion engines to use in its vehicle lineup, but it now sees no future for the technology.

According to the Korea Economic Daily Hyundai's new R&D chief Park Chung-kook confirmed in an email to employees that they are shutting down new engine development:

"Now, it is inevitable to convert into electrification. Our own engine development is a great achievement, but we must change the system to create future innovation based on the great asset from the past."

Hyundai reportedly had 12,000 people working on engines, but they are now being transferred to EV powertrain development.

"Researchers at the engine design unit have moved to the electrification design center, leaving only some to modify existing engines. The powertrain system development center is transforming into an electrification test center, while the powertrain performance development center is becoming an electrification performance development center." Park said.

"The immediate task is to develop innovative vehicles that can dominate the future market. This reorganisation will be an important starting point for change ahead in the new year."