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Numerical analysis of thermal efficiency improvement up to 45% of an 1.8-liter turbocharged direct-injection (DI) gasoline engine was conducted in this study in response to the need of improving vehicle fuel economy. 1D thermodynamics simulations and 3D computational fluid dynamics (CFD) modeling were carried out to investigate the technical approaches for improving engine thermal efficiency. Effects of various technologies on the improvement in the engine performance were evaluated, and then the technical routes to achieve 41% and 45% brake thermal efficiency were summarized, respectively. It is concluded that 41% thermal efficiency can be reached under stoichiometric combustion conditions, while it is expected lean burn technology is needed for the target of 45% thermal efficiency. The effects of high tumble intake flow on accelerating burning speed and of high compression ratio on intensifying knocking were analyzed.