The second generation of the Hyundai Excel was introduced in 1989, just for years after its predecessor.
Hyundai started to improve its products and learned the hard way how to make better cars. While the first generation of the Excel was considered a lemon, the second generation was drastically improved in every way.

While for the first Excel, Hyundai employed the Italdesign Studio to draw the lines, for the second generation, it chose to follow their design. The smoother lines of the exterior broke the pattern imagined by Giorgetto Giugiaro for the first generation. The slimmer and wider headlights followed the new design era. The sedan version offered a separate trunk area, with a short and straight deck lid.

The dashboard still kept some traces of the older version, but there were no harsh lines anymore. Even if the instrument cluster was drawn with three clear lines, their connection with smoother corners revealed a new design trend for the Korean carmaker. While the car was good for families, there was limited room in the back due to the short wheelbase. But it offered an AC-unit on most trim levels.

The drivetrain benefited from the development of new gearboxes, both automatic and manual. The four-pot engine provided 72 hp with a carburetor or 84 with an electronic fuel injection system. The former was available on selected markets.