In 1999, a new Atos joined the Hyundai line-up in an effort to improve on those initial bad reviews.
The car was fitted with the Epsilon straight 4 engine which developed 55 HP. Two years later, the car received an improved version of that, cranking 58 HP and also a new 4-speed automatic gearbox as an option. The interior was given a makeover to prevent the finishings looking so cheap. While the car was better than the original model, it was still a long way off from what the public thought a city car should be. Further improvements were going to be made with the introduction of the 2005 model, bringing the quality to a decent level.