The 2021 Hyundai Veloster N has been hit with a big price hike in the United States but it’s not without justification.

Prices for the updated Veloster N started at $33,245 including a $995 destination charge. This represents a $4,670 increase over the $28,575 MSRP of the 2020 Veloster N. Those who want the new wet eight-speed dual-clutch transmission will need to cough up an extra $1,500, bringing the price tag up to $34,745.

Read Also: 2021 Hyundai Veloster N Ditches Base 250 HP Model, Arrives In US This October

Importantly, Hyundai hasn’t increased prices for no reason. Compared to last year, all Veloster N models sold in the U.S. come standard with the Performance Package that boost power from 250 hp to 271 hp while also adding 19-inch wheels, a limited-slip differential and bigger brakes. This Performance Package previously cost $2,100, Cars Direct notes.

In addition, 2021 models come standard with automatic emergency braking, forward collision-avoidance assist, lane following assist, lane-keeping assist, driver attention warning, blind spot collision-avoidance assist, and rear cross-traffic collision warning. Hyundai has also updated the 2021 model with a larger 8-inch infotainment display and bolstered seats with an illuminated N logo.

Despite the price increase, the Veloster N is still competitively priced against its competition. For example, the outgoing Mk7.5 VW Golf GTI is $3,500 cheaper for the entry-level GTI S with a six-speed manual but doesn’t offer the same kind of performance as the Hyundai. Meanwhile, the 2021 Honda Civic Type R starts at $38,450, over $5,200 more than an entry-level Veloster N.