Hyundai starts monthly subscription offer in the US

Korean carmaker Hyundai has announced at the Chicago Auto Show that it will start offering the Kona Electric and Ioniq 5 on a monthly subscription basis called Evolve+. By lowering the threshold, the company hopes to attract first-time EV customers and persuade them about the benefits of electric driving. Apart from subscription services being the new black.

Evolve+ is a flexible program covering 1 000 miles per month, registration, insurance, maintenance, and roadside assistance. It can be canceled anytime, though it requires a minimum term of 28 days and an activation fee ($300). The roll-out isn’t nationwide but will kick off in seven cities over six states.

Cheaper than daily rentals

“With no paperwork, no commitment, and no long-term loan, Evolve+ is an optimal solution for the ‘EV-curious’ car shopper,” said Olabisi Boyle, Vice President of Product Planning and Mobility Strategy at Hyundai Motor North America. In addition, the model is an alternative to short-term leasing formulas, usually demanding a minimum loan of between three to six months.

Subscribers are asked to pay $699 monthly for a Kona Electric and $899 for the Ioniq 5. These prices are significantly lower than daily rentals and have the added comfort of hassle-free canceling.

If customers like the experience, they can transform the subscription formula into a leasing contract or a purchase. Selecting their vehicle, payment by credit card, and monthly terms are all covered by a smartphone app.

Like Lynk & Co

Hyundai offers subscription services in a few European markets through its mobility brand Mocean. But there are differences. Mocean also includes electrified models with hybrid technology, starts from a minimum loan term of three months, and includes an option for car sharing. It is operational in Spain, the UK, and the Netherlands.

Hyundais’ US program shows similarities to Lynk & Co, which has been successfully rolled out all over Europe as the mobility alternative to a Netflix formula. But the Geely-owned brand, famous for its memberships and easy-to-cancel subscriptions, isn’t currently active in North America.

Plans of opening a studio in San Francisco two years ago haven’t materialized yet. CEO of Lynk & Co, Alain Visser, told American car magazine Car and Driver: “I’m convinced there’s a market for our offering. Not everywhere, but in California, New York, and other places.” He now seems to have been beaten by Hyundai at his own game in the US.