Hyundai Connected Mobility is a recently introduced division of Hyundai aimed at innovating how car owners interact with their vehicles.
The new initiative marks a strategic shift towards software-defined vehicles and includes a plan to introduce subscription-based services for car features.
This model will allow Hyundai owners (starting in Europe) to access various digital in-car and in-app services and could potentially upgrade older models like the Ioniq 5 and new releases like the Ioniq 7.
Marcus Welz, CEO of Hyundai Connected Mobility, highlighted the company's evolving focus: “For years we worried about how we were going to sell more cars. Today we worry about 'what if all we do is sell cars?"
Subcription tiers and consumer choices
Hyundai’s subscription model will be structured into three levels: Lite, Plus and Pro. The Lite package, which is free, offers basic navigation and online services. For €2.99 (around $5) per month, the Plus package provides additional remote services. The Pro package, at €9.99 ($18) per month, includes more comprehensive services such as in-car payments to Hyundai partners.
The introduction of these subscription services raises questions about the implications for consumers. On one hand, the model allows car owners to customise their experience and potentially add new features to older vehicles.
On the other hand, it introduces ongoing costs that could affect the overall value proposition of owning a Hyundai vehicle.
Pros and cons
One potential benefit of Hyundai's approach is the ability to continually upgrade and personalise vehicle functions through software, which can enhance user experience and vehicle functionality. This could make cars more adaptable to the needs of their owners over time.
However, there are concerns about the long-term costs for consumers, who traditionally expect most vehicle features to be included in the upfront purchase price.
There's also the question of whether essential safety features might eventually be included in these subscription plans, which could necessitate additional scrutiny and regulation.
Marcus Welz addresses these concerns by assuring that the model aims to introduce new features rather than restrict existing ones. “What you have often seen in the industry is an old use case, for example, heated seats,” he explained.
“This was brought to the customer using new technology such as software updates. However, I think the benefit of feature-on-demand is exactly the opposite: to bring new features into older cars."