Find me a 70’s V8 and I will find you the smell unburnt petrol being dumped out the exhaust.
Modern cars are able to burn more of the fuel being sent into the cylinder before it gets pushed into the exhaust.
More fuel burned means more power for a smaller volume.
Also as others have said, tighter tolerances and better designed engine mechanisms mean that less energy is lost in friction and on parasitic drains like a badly designed fan belt or cam belt.
Computer control also helps increase the fuel burning by dynamically controlling the timing of ignition to optimise it.
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