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Hyundai Engine
Class Action

Class action against Hyundai in relation to

defective engines

Funder: Woodsford
Lawyers: Johnson Winter Slattery
Note: This website relates to the class action proceedings against Hyundai in relation to alleged defects in the engines of various vehicles sold in Australia since 2011. It is separate, and unrelated, to separate class action proceedings being pursued or investigated against Hyundai relating to alleged defects in anti-lock braking (ABS) systems.

Hyundai Engine Class Action

Class action against Hyundai in relation to

defective engines

Funder: Woodsford
Lawyers: Johnson Winter Slattery
Note: This website relates to the class action proceedings against Hyundai in relation to alleged defects in the engines of various vehicles sold in Australia since 2011. It is separate, and unrelated, to separate class action proceedings being pursued or investigated against Hyundai relating to alleged defects in anti-lock braking (ABS) systems.

Overview

On 15 February 2023, class action proceedings were commenced against Hyundai (the Australian entity, Hyundai Motor Company Australia Pty Limited, and its South Korean parent, Hyundai Motor Company) in the Federal Court of Australia in relation to defective engines in various Hyundai vehicles sold in Australia from 1 January 2011 to 24 August 2026.

 

The proceedings are action no. NSD 131 of 2023 in the Federal Court of Australia.  

The action is being funded by Woodsford, a leading global ESG, access to justice and litigation finance business. The applicant is represented by law firm Johnson Winter Slattery.

 

A separate but similar proceeding has also been commenced against Kia.

Hyundai filed its defence to the claim in July 2023. In its Defence:

  • Hyundai admits that a small number of Hyundai i45 and Santa Fe vehicles were subject to a manufacturing process in which there was risk that excessive swarf would remain in the crankshaft assembly. Hyundai says that it recalled all of those vehicles so that they could be inspected and so that any engine found to contain excessive swarf from the manufacturing process (which could lead to some of the faults alleged in the claim) could be replaced;
  • Hyundai admits that the engines in a small number of Hyundai Kona and Veloster vehicles were manufactured using brittle piston rings. Hyundai says that it recalled all of those vehicles so that they could be inspected and so that any engine found to contain cracks in the piston rings leading to scuffing of the cylinder bores (which could lead to some of the faults alleged in the claim) could be replaced;
  • Hyundai admits that defective software (which could lead to some of the faults alleged in the claim) was installed in a small number of Hyundai Veloster vehicles. Hyundai says that it recalled all of those vehicles and updated or replaced the software;
  • Hyundai admits that, until they were repaired, the above vehicles did not comply with the statutory warranty of acceptable quality;
  • Hyundai admits that, until they were repaired, the above vehicles did not comply with the express warranties pleaded in the claim;
  • Hyundai admits that, until they were repaired, it made misleading or deceptive representations in relation to the above vehicles that they were of good quality, reliable, durable, fit for purpose and safe;
  • but Hyundai says that owners of the above vehicles are not entitled to recover damages for any reduction in the value of the vehicles because Hyundai has remedied the failure;
  • Hyundai also says that any failure in relation to the piston rings occurred only because of the act, default or omission of the supplier of the piston rings; and
  • other than in respect of the limited group of vehicles referred to above, Hyundai denies all of the allegations.

Following a hearing on 24 July 2026, the Court on 19 August 2026 granted the applicant leave to file an amended statement of claim, which sets out the alleged engine defects in further detail and expands the class to include additional Hyundai vehicle models and engine types, including vehicles with Nu MPI engines. The amended statement of claim was filed with the Court on 24 August 2026. Hyundai has until 6 November 2026 to file an amended defence. Another case management hearing is scheduled for 10 February 2027.

IMPORTANT: THE CLASS OF VEHICLES HAS NOW BEEN EXPANDED, PLEASE READ THE BELOW

If we have previously advised you that you are not covered by the class action, please check again, as the situation may have changed.

(1)   NU MPI ENGINES NOW INCLUDED IN THE CLASS ACTION:

Affected Vehicles equipped with Nu MPI engines (engine codes beginning G4NA, G4NB, and G4NH) are now included in the class action. If you have an Affected Vehicle equipped with a Nu MPI engine, we encourage you to REGISTER NOW. If you have already registered, YOU DO NOT NEED TO TAKE FURTHER ACTION.

(2)   THE GROUP MEMBER ELIGIBILITY PERIOD HAS BEEN EXTENDED UNTIL 24 AUGUST 2026:

The eligibility period for owners or leaseholders of an Affected Vehicle has now been extended to 24 August 2026. Previously, the eligibility period cut off was 15 February 2023. This meant that if you purchased an Affected Vehicle after 15 February 2023, you were not part of the class. However, the eligibility period has now been extended to 24 August 2026. This means if you purchased or leased an Affected Vehicle after 15 February 2023 but before 24 August 2026, you may be a group member in the class action, and we encourage you to REGISTER NOW if you have not registered already.

Class action litigation can be a slow process, and we thank you for your patience. Please see the ‘Key Events page for a more detailed timeline of the proceedings.

If you own an Affected Vehicle covered by the Hyundai Engine Class Action and:

  • have recently experienced a serious engine failure (i.e. your vehicle is undriveable in its current state, and the engine needs to be replaced or repaired), or
  • you have not experienced a serious engine failure, but your engine is clearly demonstrating the faults or symptoms described below (under the heading “Claim against Hyundai”),

in addition to registering your interest below, please email us at contact@hyundaiengineclassaction.com.au and tell us about your circumstances. An inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this. We note that we are currently primarily looking to inspect vehicles of those group members who reside in New South Wales, but may also consider vehicles located in other States and Territories. If your engine has already been repaired or replaced, there is no need to contact us directly unless you still possess the failed engine. Don’t forget to register your interest if you haven’t already!

Claim against Hyundai

The action alleges that numerous vehicles sold by Hyundai in Australia since 2011 (see the list below) were sold with engines that were manufactured and/or designed defectively. As a result of these defects, the vehicles have the propensity to exhibit faults, including:

  • knocking or tapping sounds;
  • internal damage to the engine;
  • increased oil and/or fuel consumption;
  • sudden loss of power (including while driving) and engine failure;
  • the emission of smoke from the engine compartment; and/or
  • in some cases, fire.

The action alleges that the vehicles sold by Hyundai failed to comply with the statutory warranty provided by the Australian Consumer Law that goods sold to consumers are of acceptable quality.

 

In addition, it is alleged that Hyundai engaged in misleading or deceptive conduct in advertising and promoting the vehicles in Australia as being good quality, reliable, durable, fit for purpose and safe.

 

The class action seeks damages and compensation on behalf of all group members.

The specific defects alleged in the class action are listed below, categorised by engine family:


1.     Defects affecting the Gamma engine family (GDI and T-GDI)

 

a.     Piston Assembly Defect: It is alleged that the gaps between the pistons and piston rings were not manufactured to the correct specifications. This can cause the piston rings to stick and stop forming a proper seal, allowing engine oil to enter and burn inside the engine. Over time, this may increase oil consumption and lead to excessive engine wear or damage.

b.     Software Defect (MY2012-2014 Veloster vehicles only): It is alleged that the engine's computer software was not properly programmed to detect or respond to abnormal combustion events, sometimes known as engine "knocking" or "pre-ignition". As a result, the engine may continue operating under conditions that can damage internal engine components, potentially leading to increased wear, engine damage, or engine failure.

 

2.     Defects affecting the Theta II engine family (GDI, T-GDI and MPI)

 

a.     Oil Sump System Defect: The oil sump system, which stores and circulates engine oil, is alleged to have been designed in a way that does not keep enough oil flowing to important engine parts during normal driving. Without enough lubrication, engine components can wear out faster, become damaged, or in some cases cause the engine to fail.

b.     Debris Defect: It is alleged that metal shavings and other debris were not properly removed from the engine during manufacturing. As the engine operates, this material can circulate through the engine's oil system and damage internal engine components.

c.      Piston Assembly Defect: See the explanation for the Gamma engines above at 1(a).

d.     Oil Collection and Delivery System Defect: The oil collection and delivery system, which draws oil from the sump and distributes it through out the engine, is alleged to have been designed in a way that does not provide enough oil pressure to properly lubricate critical engine components when the engine is working hard during normal driving. This may lead to increased wear, engine damage, or engine failure.

 

3.     Defects affecting the Nu engine family (GDI and MPI)

 

a.     Piston Assembly Defect: See the explanation for the Gamma engines above at 1(a).

b.     Torque Production System Defect: The area where the connecting rods attach to the crank shaft was designed to be too small to with stand the forces generated during normal driving, subjecting those components to excessive stress and wear and increasing the risk of engine damage or failure.

c.      Oil Pump Defect: The oil pump, which supplies oil to the engine's moving parts, is alleged to have been designed in a way that does not properly handle changes in temperature, oil pressure, and oil condition. This can cause part of the oil pump to become stuck, reducing the flow of oil through the engine and increasing the risk of excessive wear, engine damage, or engine failure.

d.     Oil Collection and Delivery System Defect: See the explanation for the Theta II engines above at 2(d).

Affected vehicles

 

If we have previously advised you that you are not covered by the class action, please check again, as the situation may have changed.

The vehicles covered by the class action include certain 4-cylinder petrol-engined variants (with Theta II MPI and GDI, Gamma GDI and Nu MPI and GDI engines) of the following models (and model years):

Model range

Series

Engine size and type

Engine code

Model year (MY)*

Accent (hatch and sedan)

RB

1.6L Gamma GDI

G4FD

2014-2019

i30 (hatch and wagon)

GD

1.6L Gamma GDI

G4FD

2012-2016

i30 (hatch)

GD

1.8L Nu MPI

G4NB

2013-2016

i30 (hatch)

GD and PD

2.0L Nu GDI

G4NC

2014-2022

i30 SR and N Line (hatch)

PD

1.6L Gamma GDI Turbo

G4FJ

2018-2022

i30 N (hatch, sedan and coupé)

PD and CN7

2.0L Theta II GDI Turbo

G4KH

2018-2026

Elantra (sedan)

MD

1.8L Nu MPI

G4NB

2012-2014

Elantra (sedan)

AD

2.0L Nu MPI

G4NA

2017-2020

Elantra SR Turbo and Sport (sedan)

AD

1.6L Gamma GDI Turbo

G4FJ

2017-2020

i40 (sedan and wagon)

VF

2.0L Nu GDI

G4NC

2012-2018

Sonata (sedan)

NF

2.4L Theta II MPI

G4KE

2009

i45 (sedan)

YF

2.0L Theta II MPI

G4KD

2011

i45 (sedan)

YF

2.4L Theta II GDI

G4KH

2010-2013

Sonata (sedan)

LF

2.4L Theta II GDI

G4KJ

2015-2019

Sonata (sedan)

LF

2.0L Theta II GDI Turbo

G4KH

2015-2019

Veloster (hatch)

FS

1.6L Gamma GDI

G4FD

2012-2017

Veloster (hatch)

FS and JS

1.6L Gamma GDI Turbo

G4FJ

2012-2020

Veloster (hatch)

JS

2.0L Nu MPI

G4NH

2020

Kona (SUV)

OS

2.0L Nu MPI

G4NH

2018-2020

Kona (SUV)

OS

1.6L Gamma GDI Turbo

G4FJ

2018-2020

Kona N (SUV)

OS

2.0L Theta II GDI Turbo

G4KH

2022-2023

ix35 (SUV)

LM

2.0L Theta II MPI

G4KD

2010-2013

ix35 (SUV)

LM

2.4L Theta II MPI

G4KE

2010-2013

ix35 (SUV)

LM

2.0L Nu GDI

G4NC

2014-2015

ix35 (SUV)

LM

2.4L Theta II GDI

G4KJ

2014-2015

Tucson (SUV)

TL

2.0L Nu GDI

G4NC

2015-2021

Tucson (SUV)

TL

1.6L Gamma GDI Turbo

G4FJ

2015-2021

Santa Fe (SUV)

DM and TM

2.4L Theta II GDI

G4KJ

2012-2020

iLoad (van)

TQ-V

2.4L Theta II MPI

G4KG

2008-2017

iMax (people mover)

TQ-W

2.4L Theta II MPI

G4KG

2008-2017

* Model year may be different to the year of release or sale

Customers who bought or leased one of the affected vehicles with a relevant engine after 1 January 2011 but before 24 August 2026, whether new or used, may be group members in the class action. The action affects potentially hundreds of thousands of vehicles sold in Australia over that period.

Register your interest

If you purchased or leased one of the vehicles mentioned above with a 4-cylinder Theta II MPI or GDI, Gamma GDI or Nu MPI or GDI petrol engine, you may be a group member in the class action. This may be the case regardless of:
whether you purchased your vehicle new or second hand
whether you still own your vehicle or have already sold it
whether you experienced any of the engine faults referred to above or not
whether your vehicle or its engine has already been repaired or replaced (by Hyundai or someone else, under warranty or otherwise)

If you think you may be a group member, you can register your interest in being part of the class action by completing the registration form below.

NOTE TO ALL NEW SOUTH WALES RESIDENTS: If you own an Affected Vehicle covered by the Hyundai Engine Class Action and:

  • have recently experienced a serious engine failure (i.e. your vehicle is undriveable in its current state, and the engine needs to be replaced or repaired), or
  • you have not experienced a serious engine failure, but your engine is clearly demonstrating the faults or symptoms described below (under the heading “Claim against Hyundai”),

in addition to registering your interest below, please email us at contact@hyundaiengineclassaction.com.au and tell us about your circumstances. An inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this. We note that we are currently primarily looking to inspect vehicles of those group members who reside in New South Wales, but may also consider vehicles located in other States and Territories. If your engine has already been repaired or replaced, there is no need to contact us directly unless you still possess the failed engine.

Frequently asked questions

Everything you need to know about this class action
1. What is a class action?
A class action (also known as a representative proceeding) is a legal proceeding where seven or more people have claims against the same individual or corporation in respect of or arising out of similar circumstances and their claims give rise to a substantial common issue of law or fact.  Where these criteria are met, class action proceedings can be commenced by one or more of those people (the applicants) on behalf of some or all of them. A class action enables disputes and claims involving large numbers of people to be resolved via a single case.
2. What is the Hyundai Engine Class Action about?
The action alleges that numerous vehicles sold by Hyundai were sold with engines that were manufactured and/or designed defectively and therefore did not comply with statutory warranties to as to acceptable quality or express warranties in advertising material about the vehicle’s quality, reliability, durability and safety, and that Hyundai’s advertising of the vehicles was misleading or deceptive. For more information about what is alleged in the proceeding and the nature of the alleged defects, please click here.
3. Which Hyundai vehicles are affected?
If we have previously advised you that you are not covered by the class action, please check again, as the situation may have changed. The vehicles covered by the class action include certain 4-cylinder petrol-engined variants with Theta II MPI and GDI, Gamma GDI and Nu MPI and GDI engines.

MPI refers to engines with multi-point injection, and GDI refers to engines with gasoline direct injection.

Your vehicle has a Theta II MPI engine if it has an engine number or code starting with G4KD (2.0 litre), G4KE (2.4 litre) or G4KG (2.4 litre).

Your vehicle has a Theta II GDI engine if it has an engine number or code starting with G4KH (2.0 litre turbo) or G4KJ (2.4 litre).

Your vehicle has a Gamma GDI engine if it has an engine number or code starting with G4FD (1.6 litre) or G4FJ (1.6 litre turbo).

Your vehicle has a Nu GDI engine if it has an engine number or code starting with G4NC (2.0 litre).

Your vehicle has a Nu MPI engine if it has an engine number or code starting with G4NB (1.8 litre), G4NA (2.0 litre) or G4NH (2.0 litre).

Customers who bought one of the affected vehicles with a relevant engine after 1 January 2011, whether new or used, may be group members in the class action.  The actions affect potentially hundreds of thousands of vehicles sold in Australia over that period. For a list of the affected vehicles models, please click here.
4. What if my vehicle is not listed above?
If your vehicle is not one of the those listed above, and does not have one of the particular engines types listed above, you will not be a member of the class action (unless the list of affected vehicles changes in the future to include your vehicle).

In particular, please note that vehicles with 6-cylinder engines, and vehicles with diesel engines, are not currently covered by the class action.
5. Are diesel-engined vehicles included?
Vehicles with diesel engines are not currently covered by the class action.
6. Does the Hyundai Engine Class Action extend to people outside of Australia?
Currently, the Hyundai Engine Class Action only extends to consumers who have purchased Affected Vehicles in Australia.
7. Am I a group member?
You may be a group member in the class action if between 1 January 2011 and 24 August 2026: 

·      you purchased or leased an Affected Vehicle (see the list of Affected Vehicles here); and
·      you did not acquire the Affected Vehicle in an auction; and
·      you did not acquire the Affected Vehicle for the purposes of re-supply; and
·      you acquired the Affected Vehicle from a Hyundai dealership or other retailer (such as a used car dealer) or from any person who acquired the vehicle directly from a Hyundai dealership or other retailer.

If you meet the criteria described above, and your vehicle is one of the Affected Vehicles with the necessary engine type, then you are automatically a group member and do not need to take any further steps to become one.  Group members will be bound by the outcome of the class action unless they take steps to “opt out” of the Proceeding.

If you think you may be a group member, but are not sure, we encourage you to register your details here.
8. Do I need to register or sign up to be a group member?
No, anyone who acquired an Affected Vehicle (see the list of Affected Vehicles here) and otherwise satisfies the relevant criteria is automatically a group member unless and until they opt out of the class action. However, if you think you may be a group member, we encourage you to register with us here, which will make it easier for us to contact you and provide you updates and notices in relation to the class action. It will also mean that we have your contact details on record in the event there is an outcome (such as a settlement or a judgment of the court) which results in damages being awarded to group members.
9. I have registered for the class action. What do I need to do now?
At this stage, we are still processing registrations. The Court has not yet made any orders in relation to specific communications with group members. There are no further steps you are required to take at this time. You will be informed in due course when any further action is required. 
10. I bought my vehicle second hand. Am I a group member?
The proceeding has been commenced on the basis that individuals who acquired an Affected Vehicle second hand may be group members so long as they acquired the Affected Vehicle:
·     from a Hyundai dealership;
·     from another retailer (such as a used car dealer); or
·     from any person who acquired the vehicle from a Hyundai dealership or other retailer.

You will not be a group member if you acquired the Affected Vehicle at auction or for the purposes of re-supply, or from a person who acquired the Affected Vehicle for the purposes of re-supply.
11. I’ve already sold my vehicle. Am I a group member?
Yes, so long as at the time you acquired the Affected Vehicle you met the criteria described in the answer here, you will be what is called a “Group B Member” in the proceeding. If you are currently considering selling or disposing of your vehicle, or of your legal interest in it, please also read FAQ 12 below regarding how that decision may impact your potential entitlements from the class action (if it is successful).
12. Will I be affected if I decide to sell or dispose of my vehicle?
If you are currently considering selling your ‘Affected Vehicle’, or your legal interest in it (such as subject to a lease hire agreement), please take note of the following.

In this class action, on behalf of the Group Members, the lead applicant has made claims for two kinds of compensation: reduction in value loss (being the difference between the purchase price of the Affected Vehicle and its true value at the time of supply, having regard to all things known about the alleged engine defect at the time of assessment) and consequential loss (the out-of-pocket costs and expenses incurred due to the alleged engine defect, including any relevant loss on any resale).

Following a recent decision of the High Court of Australia in a separate motor vehicle class action, it has been confirmed that if an alleged engine defect is proven to exist in a cohort of affected vehicles, only those persons that continue to own, or retain their legal interest in, their affected vehicle (that is ‘Group A Members’ in this class action) may been titled to recover compensation for reduction in value loss as well as any relevant consequential loss, whereas those persons who have already sold, or sold their legal interest in, their affected vehicle (that is ‘Group B Members’ in this class action) may be able to recover consequential losses only.

Specifically, for those Group A Members in this class action who are thinking of selling, or selling their legal interest in, their Affected Vehicle, this will not prevent you from remaining a Group Member, but you will become a Group B Member. Accordingly, upon any resale or sale of interest, any entitlement you may have to recover compensation may be limited to consequential loss only.

We note, if you would continue to meet the criteria described in the answer to (FAQ 7 here) following any contemplated resale, or sale of interest in, your Affected Vehicle, you would continue to qualify as Group B Member in this class action.
13. I have not experienced any issues with my vehicle’s engine yet. Am I a group member?
Yes, so long as at the time you acquired the Affected Vehicle you met the criteria described in the answer here.
14. I am currently experiencing problems with the engine in my Hyundai – what should I do?
If you own an affected vehicle covered by the Hyundai Engine Class Action and are currently experiencing problems with the engine of the kind described above, you should first contact Hyundai and/or your local Hyundai dealer about the problems to see whether Hyundai is willing to repair your vehicle (whether your vehicle is still under warranty or not). If your engine is clearly demonstrating faults or symptoms of this kind, you may also wish to contact us at contact@hyundaiengineclassaction.com.au.

If your engine has recently suffered a serious failure (such as a complete engine failure or fire) and has not yet been replaced, please also contact us at contact@hyundaiengineclassaction.com.au as an inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this.

If you have the problems with your vehicle inspected or diagnosed by a Hyundai dealer or other independent mechanic or expert, you should seek a report of their findings in writing and retain a copy, together with any records of the costs you incurred in relation to the inspection.

If you have your vehicle repaired, you should keep copies of all records and communications associated with the repair and the costs of the repair (including associated costs such as loan car or transport costs, loss of income, etc. while you are without the use of your vehicle while it is being repaired).

If Hyundai is unwilling to repair your vehicle without charge, and you are unable or unwilling to pay the cost to repair your vehicle yourself (including potentially replacing the engine), you should keep copies of all records and communications associated with the costs you incur as a result of the engine problems, such as the costs of purchasing a replacement vehicle or using alternative transport (such as public transport or a loan car), loss of income, etc. while you are without the use of your vehicle. We also recommend that you keep records of all of your communications with Hyundai and/or the relevant Hyundai dealer in relation to your vehicle.

If you decide to sell your vehicle, you should keep copies of all records and communications associated with the sale, particularly if the price you are able to sell your vehicle for is less because of the problems you are experiencing with the engine. Please also read FAQ 12 above regarding how selling or disposing of your vehicle may impact your potential entitlements from the class action (if it is successful).
15. I do not want to be a group member. What do I do?
The proceeding is an “open class action”, meaning the applicant has commenced the class action on behalf of all group members. In an open class action, any group member who does not wish to participate must “opt out” of the class action. This process is regulated by the Court and will most likely involve all group members receiving a notice in due course which describes how they can elect to opt of the proceeding if they wish to do so.
16. What will it cost me to be part of the class action?
Group members will not be responsible for legal costs incurred in the prosecution of the claims against Hyundai by the applicant.
17. How long will the class action take?
It is not possible to say exactly how long the proceeding will take. The proceeding was commenced on 15 February 2023. Class actions can be quite long, and could take anywhere from six months to several years for the claims to be heard and determined or otherwise resolved.
18. Who are the lawyers running the proceeding?
Johnson Winter Slattery are the solicitors on the record in the proceeding for the applicant.
19. I have registered for the class action. Can the Hyundai Engine Class Action Team provide me with individual legal advice?
Unfortunately, we are unable to provide you with legal advice regarding your individual situation. As lawyers, we act for the lead applicant in the proceedings. We do not act as the lawyers for the group members, but are required to act in the interests of the group members as a whole.

While we are unable to provide legal advice regarding your individual situation, if you have experienced or are currently experiencing issues with the engine in your vehicle (see FAQ 14), you should keep written records of any costs you incur in making repairs to your vehicle, or any costs you incur as a result of the difficulties you are having with your vehicle (such as loan car or transport costs, loss of income, etc. while you are without the use of your vehicle).  

We also recommend that you keep records of any communications with Hyundai and/or the relevant Hyundai dealer in relation to problems you are having with your vehicle.

If your engine has recently suffered a serious failure (such as a complete engine failure or fire) and has not yet been replaced, please also contact us at contact@hyundaiengineclassaction.com.au as an inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this.
20. Who is funding the proceeding?
The proceeding is being funded by Woodsford, a leading global ESG, access to justice and litigation finance business.

Contact us

You can email us at contact@hyundaiengineclassaction.com.au or by filling out the form below.
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