When you experience smoking under the hood but not overheating—there are several reasons.
Typically, the reasons for white smoke coming from the hood but not overheating are oil spillage and leakages, loose or corroded terminals, and electrical wiring issues. It can be serious issues, but they are easy fix.
Electrical wiring issues: The engine can be very hot or burning electrical wires are another common cause of white smoke from under hood because of burning electrical wire, you will perceive a pungent odor.
If the issue is from the copper wire in the alternator, you won’t perceive the smell unless the alternator is completely burnt. When that happens, the vehicle will have low voltage and the check engine light will appear on the dashboard.
Oil spillage: It might come from the spilled of Engine oil change or there is a leak which cause the white smoke from the hood. There are several signs of leak from engine such as the valve cover oil seals, cracked valve cover, cracked timing cover, and faulty crankshaft oil seal. Also, steering oil leaks from the pump, reservoir, or lines could drip on hot engine parts and burn off. If you see a car smoking under hood and burning smell from the engine compartment, it’s an indication of an oil leak somewhere in the engine.
Battery terminals: This is one of most severe problems and it causes the explosives. The poor connection at the battery terminal or at the other end, or a shorted positive battery terminal can cause smoke from the battery. If you have loose or corroded battery terminals that is preventing good connection, you will see arching on the battery connections. It could be the car battery has internal shorts, making it very hot and causing the smoke you see. Replacing the battery is the best option.
Exhaust leaks: The smoke can from the leak of exhaust system, such as a damaged pipe or cracked exhaust manifold, can cause smoke to emanate from under the hood.

What Should I do there smoke coming from under the hood.
You should not ignore when you see white smoke comes out from the hood. You car can caught on fire while keep driving.
If smoke is emanating from your car underhood, look into these areas:
Check for oil leaks: Check for oil leaks in the engine bay if you think a fluid leak is the culprit. If low oil pressure light is illuminating on the dashboard due to oil leaks, do not drive the vehicle. Top up the oil until it gets the normal oil level mark on the dipstick. We recommend to go to preferred garage.
Fix burning or shorting wires: Trace the smoke and see if there is any arching or burning electrical wires. If there is, it could be a positive wire is shorting somewhere. Turn off the vehicle, then locate and separate the shorting wires or contact your mechanic.
Clean the battery terminals: If the smoke is coming from the battery terminals, thoroughly clean the cables and the battery terminals. Please check the small wires that connect to the positive battery cable and ensure they are not shorting somewhere. If the battery keeps smoking after cleaning the terminals, there is a chance it is shorting inside.
Check the exhaust for leaks: Finally, check the exhaust for leaks for cracks or damage which can cause the smoke. You will have loud noise from engine if there’s a leak from exhaust system.
Smoke should not come out from engine hood, but if it does it could be a minor or huge problem. Therefore, it is very important to have your cars check regularly with professional mechanics because there are other fluids such as brake, transmission, engine coolant, or power steering fluid dripping on a hot exhaust system.
By KCD