Hyundai Motor Ioniq 5 electric SUV / Courtesy of Hyundai Motor
Hyundai Motor Group said Tuesday that it will begin a pilot program letting customers pay separately for electric vehicle (EV) batteries rather than buying them with the car, an effort to reduce the upfront cost of owning an EV.
Hyundai Motor and Hyundai Capital will jointly run the pilot in the first half of this year, targeting corporate taxi operators whose battery warranties have expired. The program is made possible by a special regulatory exemption approved by the Ministry of Land, Infrastructure and Transport in November, allowing electric vehicle bodies and batteries to be registered under separate ownership for the first time.
Under current vehicle regulations, batteries cannot be registered or managed separately from the vehicle. That has been cited as a drag on EV demand, since battery degradation can reduce resale values and leave owners responsible for costly replacements.
The pilot program will cover five Ioniq 5 fleet taxis operating in the Seoul metropolitan area. Participating operators will pay a monthly subscription fee to Hyundai Capital and, when a battery needs replacement, exchange the used unit for one owned by Hyundai Capital. No separate battery purchase will be required.
Hyundai Motor Group said fleet taxis are well-suited for the pilot because their high mileage accelerates battery degradation, creating faster replacement needs. The automaker said it will use the pilot to assess potential cost savings and vehicle lifespan extension under real operating conditions.
The automaker also plans to launch a second pilot in the second half of this year, targeting general consumers, offering EV sales combined with battery subscription services based on the same ownership-separation framework.
A Hyundai Motor Group spokesman said the company ultimately aims to expand battery subscription and financing products to the broader market, lowering the cost of EV ownership and supporting the government’s push for cleaner vehicles.
This article was published with the assistance of generative AI and edited by The Korea Times.
Source: Korea Times News
