The division Connected Mobility Hyundai is growing its car subscription service, named Mocean, with ambitious plans to expand into major European markets. Already successful in Spain and the United Kingdom, this service was recently launched in Germany.
Why is Hyundai betting on subscriptions?
While some manufacturers, such as Volvo and Lynk & CO, are abandoning or revising their subscription offers, Hyundai is banking on flexibility and a new approach to automobile use. The Mocean service gives consumers access to more than 40 Hyundai models, with a monthly rate that includes insurance, maintenance and taxes.
According to Liran Golan, director of mobility services at Hyundai Connected Mobility, “The younger generation is no longer motivated by purchasing a car. We must adapt to this reality. »
Promising results in Germany
In Germany, the automobile subscription market is expected to grow at an annual rate of 33.5% by 2030. Hyundai plans to achieve profitability through a strategy that relies on logistics optimization, utilization of the dealership network and lean management, with little spending on marketing.
Unlike other players, Hyundai seems better positioned thanks to the absence of registration fees, as well as the flexibility of contracts, from one month to several years.
A solution for electric vehicles
The subscription model also plays a key role in the adoption of electric vehicles. According to Hyundai, the majority of Mocean's German customers opt for an electric vehicle.
“Subscriptions allow consumers to test electric model technology without committing to purchase. »
– Liran Golan, Director of Mobility Services at Hyundai Connected Mobility
David Bailey, professor of economics at the University of Birmingham, agrees. “It’s an ideal way for consumers to explore electric vehicles without the high upfront costs and uncertainty of charging and resale value.” »
A diverse audience and potential for business parks
The typical subscriber to the Mocean service is 42 years old on average, or 10 years younger than the typical buyer of a Hyundai product. Among the target groups, we aim to:
- • Young families looking for a secondary car.
- • Expatriates in big cities.
- • Professionals not wanting to commit to the purchase.
- • Companies, particularly German SMEs, who need flexibility for their fleets.
With 58% of new European cars destined for corporate fleets, Hyundai sees enormous growth potential in this segment.
Original content from auto123.
