Wednesday, June 19, 2024
NewsHyundai Eyeing Subscription Service to Bring Buyers Into EV Fold

Hyundai Eyeing Subscription Service to Bring Buyers Into EV Fold

New vehicles, new sales methods

  • Low-commitment way to ease EV adoption fears

  • Ioniq 5 not yet priced, expected to be competitive with other EVs


In a clever new way to bring in buyers not quite sure about making the transition to a fully electric vehicle, Hyundai is working on a new subscription service. A new report says the service would give EV buyers a few months of short-term try before you buy after which they could buy the Hyundai Ioniq 5 or send it back.

“When you try before you buy and you find it can work for you in your everyday life, you tend to now want to move toward potentially owning,” Olabisi Boyle, vice president of product planning and mobility strategy at Hyundai Motor North America told Automotive News. “We do expect that they’ll transition from try to buy.”

The report says Hyundai is still working on the details, but the preliminary plan for US shoppers is to offer a one to three-month subscription. The payments would cover the vehicle, the insurance, and maintenance, making it a short-term way to confirm that EV ownership can work for buyers on the fence.

Boyle told AN that the fear of compromise was a roadblock to EV adoption. Hyundai worked to minimise those with unique features like the flat floors and ability to power appliances.

Hyundai is now focused on launching the Ioniq 5 and the Ioniq subbrand that goes with it, says the report. Dealers will not need a separate space or additional cost, but will need technical training and some other requirements. In the US, Ioniq 5 will initially be sold only in 17 states, those that mandate EVs along with seven others. As supply improves, availability will expand. Boyle said that Hyundai plans to price the 5 competitively with similar crossover EVs, likely the Ford Mustang Mach-E and Volkswagen ID4

 

 

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