Hyundai has announced a new all-in-one subscription service in the UK specifically dedicated to its BEVs, PHEVs, and hybrid vehicles. Named Hyundai Mocean, this new subscription service allows approved customers to have an EV delivered to them for a monthly fee that includes insurance, maintenance, road tax, and repairs. This is a business model Hyundai Motor Group has been experimenting with in other countries before trying it out in the UK.
As a multinational automotive manufacturer, Hyundai Motor Group has sales strategies in different global markets. One tactic that the company has been experimenting with in recent years is a subscription service for its vehicles.
Early adaptations had been structured similar to a lease. However, part of the monthly subscription payment also included benefits such as auto insurance, maintenance, and roadside assistance.
Other competitors also have similar subscription service models, such as “Book by Cadillac,” “Care by Volvo,” and “Porsche Passport.”
Hyundai tried the souped-up lease strategy in the US in 2018 called Hyundai PLUS, combining monthly lease payments with premium auto insurance and maintenance. However, this only pertained to certain US models and was not specifically catered to EVs.
Hyundai also tried an “Ioniq Unlimited+” subscription program, which it will revive in the US with the debut of the Ioniq 5 EV.
In 2019, Hyundai launched a similar subscription service in Seoul and its surrounding metropolitan area called Hyundai Selection. After a year, however, Hyundai Selection only had 225 accumulated subscribers.
With Hyundai’s observable focus on an electrified future, it now looks to cater a revamped subscription service to herd in new EV drivers in the UK.
Hyundai launches Mocean subscription service in the UK
In a press release from Hyundai UK, the automaker shared the details of its newest iteration of the subscription service, now known as Hyundai Mocean.
The subscription in the UK applies specifically to BEV, PHEV, and hybrid models from Hyundai and starts at a price of £339 (~$471) per month for a 24-month subscription.
Subscriptions are available for as little as three months and for as long as 24 months, with a focus on delivering a sign-up and drive process that takes just a few clicks. During a fully digital process, customers simply choose the car they want and how long they want it for, enter their details and – once approved – a car will be delivered to them within a matter of days. Alternatively, users can choose to pick their car up from a local Hyundai retailer.
The monthly subscription fee covers everything drivers need, including insurance, roadside assistance, road tax, plus maintenance and repairs at authorized Hyundai dealers.
Additionally, Mocean subscription customers have the option to change their EV every six months. Cancellation is allowed after three months and requires one month’s notice.
The Mocean subscription service will begin in the greater London area this month, followed by other major UK cities throughout 2021. You can check out the introductory video below:
This is an interesting concept that gives UK residents the freedom to try out an EV without fully committing to a purchase with a downpayment or a multi-year lease.
While it looks good on paper, the big test will be to see how many British subscribers Hyundai can gather over the first year. As mentioned above, previous subscription offerings have seen little engagement in other markets.
That being said, the all-in-one subscription could be enticing to some who simply want everything in one holistic system. This model is on point with a lot of synergistic subscription services outside of the automotive market, like streaming bundles.
The fact that you can swap out for a new Hyundai EV every six months sounds pretty cool, too, although there currently aren’t too many vehicles to choose from, especially in terms of BEVs.
The minimum price threw me off at first for a 24-month subscription, as $471 is a lot more than I’m paying for my current Ioniq lease in the States. However, when you take into account auto insurance alone, these are pretty evenly priced — at least from a Yankee perspective.
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