With the popularity of the Kia Seltos SX Turbo, they need a trim that can compete. Doesn't even have to be a different displacement engine, if they can perhaps just put forged internals in the 1.3T and use a bigger intercooler and more boost to match the 175hp/200ftlbs.
After all, the Renegade 1.3T also makes 177hp/200ftlbs at the same displacement.