Although the Veloster N has only been on sale since the 2019 model year, the changes for 2021 are fairly significant. Aside from the new eight-speed automatic (effectively a $1,500 option) joining the standard six-speed manual transmission, there’s a power boost for 2021. Starting this year, the Performance Package that was available on 2019 and 2020 Veloster Ns becomes standard. This not only boosts the 2.0-liter turbocharged I-4’s power from 250 hp to 275 hp (torque remains flat at 260 lb-ft), but it also includes a limited-slip differential, electronically-adjustable dampers, bigger brakes with better cooling capacity, an active exhaust system, and stickier summer tires on 19-inch wheels.

Other changes include new performance bucket seats with an “N” logo that lights up a cool blue at night and, on cars with the new dual-clutch, an “NGS” button. Short for “N Grin Shift,” the NGS button works similarly to Porsche’s Sport Response button, in that it puts the car into the most aggressive N setting and temporarily boosts torque to 278 lb-ft for 20 seconds. (Unlike Porsche’s push-to-pass-like button, however, NGS needs two minutes to ‘recharge’ between each use.)

Let’s get right to it: As expected, opting for the dual-clutch over the manual results in a significantly quicker hot hatch. Despite a finicky launch control system, our automatic Veloster zipped from 0-60 mph in a seriously quick 5.1 seconds and on through the quarter-mile in 13.7 seconds at 102.9 mph. The quickest manual Performance Pack-equipped Veloster N we’ve tested needed 5.9 seconds to hit 60 mph and 14.9 seconds to get through the quarter-mile at 101.0 mph.

You’d expect the more complex dual-clutch to add some weight to the Veloster N package, and it does—just a hundred pounds by our scales. Thankfully, this doesn’t negatively affect handling or braking performance too much. The Veloster N DCT’s 60-0 mph brake performance falls from 111 feet for the manual car to 114 feet for the automatic one, while figure-eight performance improves a hair from 24.9 seconds at 0.74 g average, to 24.7 seconds at 0.76 g.

While the latest Veloster N is undeniably quick, road test editor Chris Walton has some homework for Hyundai’s N team when it comes to limit-handling—something a Veloster N owner is likely to experience at a track day or autocross event. “Two things that need improvement are the brakes and/or the tires. Neither is sufficient for what this car is capable of doing or intended for,” he said. “As the laps pile on, creeping understeer became rather dramatic understeer, and I had to back up the braking zone because neither the brakes nor the tires were happy any longer. The Veloster N really doesn’t like to be flogged.”

The Veloster N’s limit performance issues don’t present a problem in a world where driving 10/10ths in a 275-hp hatchback could result in your license being yanked. What continues to present the biggest problem for the Veloster N, however, is its bone-crushing ride in either Sport or N modes. The Veloster’s Normal drive mode, which offers the softest suspension tune, is only marginally better, as it’ll have you bracing for impacts and pulling over after nasty ones to check for damage to the N’s low profile rubber.

Once you find a suitably smooth road and open up the taps, the Veloster is a treat. The N’s little four-pot is the star of the show, and has the character of an engine twice the size and displacement. With a wide, meaty powerband and delightful exhaust note, the Veloster N’s engine feels like it always has something to prove. The Hyundai’s talkative steering has great feel, and the balanced chassis exhibits exceptional poise. The Veloster N remains an exceptionally fun car to chuck around.

The new optional transmission isn’t better or worse than the six-speed manual it replaces, just different. First, the good: we obviously love a good manual but with this new dual-clutch transmission, the Veloster N feels unquestionably quicker than the manual version. Shifts are “snappy and aggressive,” as associate road test editor Erick Ayapana put it, shifting almost as seamlessly as Volkswagen’s famed DSG dual-clutch. But like the manual, the Veloster N’s automatic transmission is slightly flawed. While it shifts smartly when driven sedately around town in Normal mode, the shift logic in Sport and N modes leaves much to be desired, shifting up early when maintaining a steady throttle position, and downshifting long after you’re hard on the brakes or have already called for more power. Thankfully, the Veloster’s paddle shifters are a responsive substitute to the automatic setting.

All the new added content for 2021 has pushed the Veloster N out of the $20k club and into the $30,000 range. The 2020 Veloster N started at $28,595, with the $2,100 Performance Package the only significant option. The 2021 Veloster N’s base price creeps up to $33,255 but now includes the Performance Package, and our car was $34,755 due to the inclusion of the new dual-clutch transmission.

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