Home > Business > Industry

Hyundai Motor Group to launch pilot EV battery subscription program

Published: 29 Apr. 2026, 07:00

Hyundai Motor's Ioniq 5 EV [HYUNDAI MOTOR]

Hyundai Motor Group is launching a pilot project that allows EV batteries to be used on a subscription basis, instead of being owned by the car buyer, in a move aimed at lowering the cost of switching to electric vehicles.

The project is designed to reduce the high upfront cost of EVs and ease concerns about short battery lifespans by separating vehicle ownership from battery ownership. The pilot will begin with fleet taxis, with plans to expand testing to general consumers in the second half of this year.

Hyundai Motor Group announced on Tuesday that Hyundai Motor and finance firm Hyundai Capital Services will begin a pilot program of EV battery subscription in the first half of this year, using five fleet taxis whose warranties have expired.

The program became possible after Hyundai Motor Company received special government approval last November to test the model under the Ministry of Land, Infrastructure and Transport’s so-called regulatory sandbox, a policy which allows companies to try out new technologies that are not yet permitted under existing laws.

Under the current Motor Vehicle Management Act, EV batteries are treated as part of the car, meaning the battery and the car itself cannot be registered under separate owners. The regulation has been pointed out as a major barrier to EV demand, as buyers must bear the full cost of battery depreciation and replacement.

The pilot will involve five Ioniq 5 fleet taxis operating in the Seoul metropolitan area. Taxi operators will pay a monthly subscription fee to Hyundai Capital Services, and when a battery needs replacement, they will receive a new battery owned by Hyundai Capital Services. The used battery will be returned to Hyundai Capital Services in exchange.

The headquarters of Hyundai Motor Company in Seocho District, southern Seoul, on Jan. 23, 2025. [NEWS1]

Hyundai Motor plans to use the pilot to test whether the subscription model can lower the cost burden for drivers, extend vehicle lifespan and function as a viable business model.

A startup spun off from Hyundai Motor, Pit In, which develops battery-swapping systems that allow EV batteries to be replaced in about 10 minutes, has already been testing a similar model in Anyang, Gyeonggi, since September last year.

The Anyang project involves Pit In, Hyundai Motor, Kia and logistics company Hyundai Glovis. Around 30 taxis from four taxi companies are currently using battery subscription and replacement services.

As of last year, a taxi company buying a Kia EV6 priced at 50.6 million won ($34.3 million) would pay only about 18.6 million won after subsidies, which is about 37 percent of the original price. Under the pilot program, the battery would be paid for separately through a monthly subscription of about 1.4 million won.

Pit In believes this setup can be cheaper than a similar LPG taxi, which costs about 27 million won upfront and about 1.5 to 1.8 million won per month for fuel.

A machine at Pit In's facility moves EV batteries into charging systems. [LEE SOO-JUNG]

“Market demand has been confirmed, and we are aiming to open a second facility in Incheon,” Kim Se-kwon, head of Pit In, said.

Hyundai Motor plans to expand the pilot to general consumers in the second half of this year. It will mark the company’s first attempt to offer EVs with separately owned batteries on a subscription basis to individual buyers. Details regarding the project's size and duration are still under discussion.

Battery subscription models have already gained traction overseas, particularly among Chinese EV companies. The most advanced example is NIO, a Chinese EV company that has built 3,790 battery swap stations worldwide since opening its first in 2018.

NIO drivers can have their batteries automatically swapped for fully charged ones in about three minutes without leaving the vehicle. In February this year, NIO completed its 100 millionth battery swap.

“Battery subscription could lower the price of EVs and also expand the market for battery recovery and recycling,” an auto industry source said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE SOO-JUNG [[email protected]]