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The Hyundai Venue will come equipped with Hyundai’s new Smartstream 1.6-liter, Dual Port Injection (DPI) four-cylinder engine with Continuously Variable Valve Timing (CVVT).

The engine delivers 121 horsepower at 6,300 rpm and 113 lb.-ft. of torque at 4,500.

The engine is paired with Hyundai’s Intelligent Variable Transmission (IVT) automatic. Hyundai’s first, internally-developed, proprietary IVT offers a shift-control strategy that enhances shift response by continually modulating pulley pressure according to changing driving conditions.

There will also be an available 6-speed manual transmission as well.

The Venue’s EPA estimated MPG fuel economy is 30 city, 34 highway and 32 combined for the IVT models and 27 city, 35 highway and 30 combined for the manual transmission model.
 

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All the reviews I've read have said the engine is pretty puny. But it seems plenty peppy to me, especially for such a small vehicle. The 6-speed manual transmission works well, with a quite tall top gear. Since most of my driving is in stop and go city traffic, I rarely get past 5th anyway.

According to the on-board computer, I'm getting about 28 mpg in the city and 38 on the highway. I'll take that any day.
 

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I think a smaller engine like this one definitely benefits more from the manual transmission than the automatic. 28 and 38 mpg is really good compared to the estimates.
 
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