Hyundai Motor Group has launched a pilot battery subscription service in its home market, in collaboration with its Hyundai Capital financial services subsidiary, as the South Korean automaker looks to help lift domestic demand for battery electric vehicles (BEVs) by reducing ownership costs.
The announcement of the programme came just months after the South Korean government approved new regulations that allow BEV batteries to be registered separately from the vehicle. This effectively allows for a more flexible BEV ownership structure, whereby batteries can be bought under a separate subscription plan and managed separately from the rest of the vehicle.
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Previously, BEV batteries were tied in with the vehicle, which limited ownership options and caused concern over battery performance degradation and replacement costs.
Hyundai’s pilot programme initially targets corporate taxi operators that use Hyundai Ioniq 5 BEVs in the Seoul metropolitan area, whose battery warranties are scheduled to expire in the first half of this year. Taxis were chosen for the initial pilot scheme because of their high usage and greater battery replacement needs.
Under the programme, participating taxi operators pay a monthly fee to Hyundai Capital, rather than buying the battery outright. When a battery reaches the end of its usable life, it can be returned and replaced with another unit owned by Hyundai Capital. The programme will be extended to private motorists in the second half of the year.
Hyundai Motor Group said the trial will help it understand whether battery subscriptions can help lower the cost and extend the service life of BEVs.
