2012-2017 Hyundai Veloster engine problems: what's listed and what to do

Last reviewed 2026-10-09 · Data: NHTSA, official settlement and manufacturer documents · Independent site, not affiliated with Hyundai, Kia or NHTSA

Short answer

The 2012-2017 Veloster with the Gamma 1.6L GDI engine is on the Hyundai Engine II settlement list: 15 years or 150,000 miles from original retail delivery for connecting-rod bearing damage, with KSDS required first. Certain 2015-2016 Velosters are also in recall 20V-746 for early bearing wear, and the 2013 Veloster Turbo has a pre-ignition software recall (19V-204). The 1.6L turbo isn't named on the settlement list, so turbo owners should check their VIN with the official lookup.

Check your VIN to see recalls and which programs list your exact engine.

Which engines and years are involved

1.6L Gamma GDI (base): Engine II settlement, 2012-2017.
1.6L turbo GDI (Veloster Turbo): not named. The settlement site lists only the "Gamma 1.6-liter GDI". Turbo owners should check their VIN with the official lookup or a Hyundai dealer.
2019-2021 Veloster 2.0L Nu MPI (next generation): not in Engine II; certain cars are in piston-ring recall 21V-301.

What the settlement, recalls and anti-theft program say

KSDS (Knock Sensor Detection System) is free dealer software that listens through the knock sensor for the vibration pattern of a worn connecting-rod bearing. If it hears it, it turns on the check-engine light and limits engine power so the car can be driven to a dealer instead of the engine failing on the road. Kia's dealer letter names the trouble code P1326 for this condition.

Hyundai Engine II settlement (In re: Hyundai and Kia Engine Litigation II, C.D. Cal.): the official site says judgment was entered April 26, 2024. It extends the powertrain warranty to 15 years or 150,000 miles from original retail delivery, whichever comes first, for short-block or long-block damage caused by connecting-rod bearing failure.
Condition: the KSDS update must be done at a Hyundai dealer before any covered failure. Vehicles under Hyundai recalls 198 and 209 (NHTSA 20V-746 and 21V-727) are exempt from that requirement, per the site.
Later owners: the site says the extended warranty carries over to later private owners. It is not available to commercial entities such as used-car dealers or auction houses.
Deadlines: cash claims (towing, rental, inconvenience, fire losses, rebates) expired July 8, 2024. The extended warranty itself needs no claim form.
Recall 20V-746 covers certain 2015-2016 Velosters (plus some 2012 Santa Fe and Sonata Hybrid): inspect, replace the engine if bearing damage is found, install KSDS.
Recall 19V-204 updates engine software on certain 2013 Veloster Turbos to stop pre-ignition that can damage the engine.
Anti-theft: Hyundai's Campaign 993 bulletin lists this model for the free anti-theft software, but only on turn-key cars with no immobilizer. If your car has a push-button start or an immobilizer light in the cluster, the software doesn't apply. Check by VIN at hyundaiusa.com/anti-theft.

Engine-related recalls

23V-651 is an ABS module recall (2012-2015 Veloster among many models). NHTSA's remedy text says to park outside and away from structures until the fuse is replaced.

20V-746 · ENGINE
Hyundai Motor America (Hyundai) is recalling certain 2015-2016 Veloster, 2012 Santa Fe, 2011-2013 Sonata Hybrid, and 2016 Sonata Hybrid vehicles. The connecting rod bearings inside the engine may wear prematurely, which over time can result in engine damage.
19V-204 · ELECTRICAL SYSTEM:SOFTWARE
Hyundai Motor America (Hyundai) is recalling certain 2013 Veloster vehicles that are equipped with 1.6 liter turbo engines. The engine management software may cause premature ignition (pre-ignition) of the air/fuel mixture in the engine. The resulting excessive cylinder pressure may damage the engine.
23V-651 · SERVICE BRAKES, HYDRAULIC:ANTILOCK/TRACTION CONTROL/ELECTRONIC LIMITED SLIP:CONTROL UNIT/MODULE
Hyundai Motor America (Hyundai) is recalling certain 2011-2015 Elantra, Genesis Coupe, Sonata Hybrid, 2012-2015 Accent, Azera, Veloster, 2013-2015 Elantra Coupe, Santa Fe, 2014-2015 Equus, 2010-2012 Veracruz, 2010-2013 Tucson, 2015 Tucson Fuel Cell, and 2013 Santa Fe Sport vehicles. The Anti-Lock Brake System (ABS) module may leak brake fluid internally and cause an electrical short, which can result in an engine compartment fire while parked or driving.

Recall text quoted from NHTSA. Whether a recall is still open on a specific car can only be checked by VIN at NHTSA or the manufacturer.

What owners report to NHTSA

1,216 complaints have been filed with NHTSA for the 2012-2017 Veloster. 519 of them name an engine component.

Model year	All complaints	Engine complaints	Engine + fire	Typical mileage mentioned (engine)
2012	296	65 (22%)	4	too few (n=8)
2013	425	174 (41%)	23	71,000 (n=36)
2014	86	36 (42%)	3	too few (n=9)
2015	137	79 (58%)	4	too few (n=8)
2016	222	139 (63%)	3	97,000 (n=17)
2017	50	26 (52%)	0	too few (n=3)

Source: NHTSA complaints API, pulled 2026-10-09. "Engine complaints" are complaints where the owner picked an ENGINE component (one complaint can list several components). Mileage is the median of mileages owners typed into their complaint text, shown only when at least 10 complaints mention one. Complaints are unverified owner reports, and counts reflect how many owners filed, not how many cars failed.

2013 has the most engine complaints, which fits the 2013 turbo pre-ignition recall. By 2015-2016 the engine share passes 55%. The 2017 sample is small (50 complaints).

Warning signs to take seriously

Knocking that rises with RPM, or a sudden loss of power.
Flashing check-engine light with limp mode after KSDS (bearing wear detected).
On a 2013 Turbo: rough running or a hard knock under load. Make sure 19V-204 is done.
Oil burning or smoke from the engine bay.

What to do, step by step

Check the VIN at NHTSA and Hyundai for 20V-746, 19V-204 and the ABS recall.
Ask a Hyundai dealer to confirm KSDS is on file. Engine II requires it before a failure.
Turn-key car? Run hyundaiusa.com/anti-theft for the free software.
With symptoms, call Hyundai service with the VIN before paying for diagnosis, and ask specifically whether your engine (turbo or not) is a class engine.

Dealer insider note

Be clear about which Veloster you are talking about. According to the guide above, the 1.6L Gamma GDI is on the Engine II list for 2012-2017, certain 2015-2016 cars are in recall 20V-746, and the 2013 Veloster Turbo has a pre-ignition software recall, 19V-204. The 1.6L turbo is not named on the settlement list, so turbo owners should ask rather than assume.

These cars are older now, so history matters more than looks. At the desk, bring the VIN, ask for the campaign and recall check by VIN, ask whether KSDS is on file, and ask that any covered work show the campaign number on the repair order.

On a test drive, listen for knocking that rises with engine speed, watch for the check-engine light, and notice any loss of power. Check the oil level before and after. A car that needs oil between changes is worth a question to the seller. None of this is a diagnosis, but it tells you what to ask a dealer to inspect.

Used buyers should ask for: the KSDS record, recall history, any engine replacement paperwork, and maintenance records. Ask the dealer to run the VIN and print the result.

Until the VIN check is done, do not sign a release, a waiver or a customer-pay repair order. Get any estimate in writing, and ask whether fees are waived if the car is covered.

A reasonable outcome is a free update and a written answer on coverage. If the shop stalls or says no, call the manufacturer's customer-care line (number is in your owner's manual). Give the VIN and repair order, ask for a case number, and keep every receipt.

Questions

Is the Veloster Turbo in the Engine II settlement?

The settlement site names only the 2012-2017 Veloster with the Gamma 1.6-liter GDI engine; the turbo isn't named. Check your VIN with the official lookup, Hyundai or the settlement administrator.

What does recall 20V-746 do?

For certain 2015-2016 Velosters, dealers inspect the engine for connecting-rod bearing damage, replace it if damaged, and install KSDS software, free of charge.

Is the 2019+ Veloster included?

No. The second-generation Veloster isn't on the Engine II list. Some 2019-2021 2.0L cars have piston-ring recall 21V-301.