Traditionally more displacement [engine capacity] means more power because it can burn more fuel during each revolution of the engine. Displacement can be increased by making the cylinders bigger or/and by adding more cylinders.
But 1.6-liter, 4-cylinder EP6-DTx Peugeot engine can pump out as much as 220hp and 280Nm of torque, i.e more powerful than most 2.4liter engines? Normally a modern 1.6liter fuel-injection twin-cam 16v VVT [or VTi, VTec, CPS, etc] engine can only develop around 120bhp with less than 160Nm of torque.

How did Peugeot achieve that?
1. By Increasing the compression ratio - Peugeot engines are using higher compression ratios to get more power.
2. Stuff more into each cylinder - More air is pumped (and therefore fuel) into the cylinders hence more power developed (in the same way by increasing the size of the cylinder). High-Pressure Turbo [THP] chargers pressurize the incoming air to effectively cram more air into a cylinder.
3. Cool the incoming air - Apart from heat transfer from the exhaust gases via turbo rotor and housing, compressing air raises its temperature. Therefore there is a need for the intercooler. Peugeot intercooler is a special heat radiator through which the compressed air passes to cool it off effectively before it enters the cylinder.
4. Let air come in more easily - As a piston moves down in the intake stroke, air resistance can rob power from the engine. Air resistance is lessened dramatically by putting multi intake valves in each cylinder. Polished intake manifolds are used to eliminate air resistance there. Large air filters is also used to improve air flow.
5. Let exhaust exit more easily - Exhaust gas resistance is lessened by adding another exhaust valve to each cylinder. Peugeot also uses large exhaust manifolds and pipe - not large and noisy tail-pipe!
6. Make everything lighter - Lightweight parts help the engine perform better. Each time a piston changes direction it uses up energy to stop the travel in one direction and start it in another. The lighter the piston, the less energy it takes.
7. Special Injection - Peugeot Direct-Injection System allows very precise metering of fuel to each cylinder. This improves performance and fuel economy.
8. Twin-Scroll Turbo Charger - reduce or eliminate turbo lag. Maximum torque is available from below 2000rpm and remain constant throughout useful power band.
But 1.6-liter, 4-cylinder EP6-DTx Peugeot engine can pump out as much as 220hp and 280Nm of torque, i.e more powerful than most 2.4liter engines? Normally a modern 1.6liter fuel-injection twin-cam 16v VVT [or VTi, VTec, CPS, etc] engine can only develop around 120bhp with less than 160Nm of torque.

How did Peugeot achieve that?
1. By Increasing the compression ratio - Peugeot engines are using higher compression ratios to get more power.
2. Stuff more into each cylinder - More air is pumped (and therefore fuel) into the cylinders hence more power developed (in the same way by increasing the size of the cylinder). High-Pressure Turbo [THP] chargers pressurize the incoming air to effectively cram more air into a cylinder.
3. Cool the incoming air - Apart from heat transfer from the exhaust gases via turbo rotor and housing, compressing air raises its temperature. Therefore there is a need for the intercooler. Peugeot intercooler is a special heat radiator through which the compressed air passes to cool it off effectively before it enters the cylinder.
4. Let air come in more easily - As a piston moves down in the intake stroke, air resistance can rob power from the engine. Air resistance is lessened dramatically by putting multi intake valves in each cylinder. Polished intake manifolds are used to eliminate air resistance there. Large air filters is also used to improve air flow.
5. Let exhaust exit more easily - Exhaust gas resistance is lessened by adding another exhaust valve to each cylinder. Peugeot also uses large exhaust manifolds and pipe - not large and noisy tail-pipe!
6. Make everything lighter - Lightweight parts help the engine perform better. Each time a piston changes direction it uses up energy to stop the travel in one direction and start it in another. The lighter the piston, the less energy it takes.
7. Special Injection - Peugeot Direct-Injection System allows very precise metering of fuel to each cylinder. This improves performance and fuel economy.
8. Twin-Scroll Turbo Charger - reduce or eliminate turbo lag. Maximum torque is available from below 2000rpm and remain constant throughout useful power band.
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You are so happy when a gentle tap is applied on the accelerator pedal the car seems to be flying... and you tell the whole world without knowing your car engine will be out of breath before reaching the new record breaking top speed.... then you became frustrated!
For instance, an n.a diesel engine car also behaves like that. A diesel engine of the same capacity even has higher maximum torque than petrol powered engine. But how come a car powered by n.a diesel engine is so sluggish in century acceleration and 400m standing? However, a turbo diesel engine has a totally different story.

Type 3: Hi-rev (narrow) Power Band
... the 5-speed stock transmission is actually a 4-speed with an over drive.