1st: Horsepower is a measure literally of torque and RPM. With a given RPM you can increase the horsepower by increasing the torque. Likewise your engine can gain horsepower by running higher rpms for a given torque number.
To gain torque you need to move more air as an engine is just an air pump. The more air you move, the more energy you have. That combined with the stroke length gives you torque.
To increase torque therefore you can increase the size of the engine, increase the air flowing into the engine to allow for more fuel to burn, decrease the drag and rotating mass of each part.
Turbo charging increase the air flowing into the engine so more fuel can burn.
A larger displacement increases the size of the cylinder so more air can be compressed and (longer throw or fatter cylinder) more torque.
Increasing the cylinders decreases the mass of a given piston and gives you more pistons to derive torque from. It also allows for higher RPM because it is smoother. The problem is more resistance and more parts to break so there is a limit to the return.
**The question you want is how does increasing the engine size by 25% increase the output by ~100%**
So they increased the size of the cylinders, changed parts so they can rev higher and increased the boost running into the engine.
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