Rising new-car prices boost subscription demand
Automakers expand mobility-service offerings
Market expands to car sharing and tire subscriptions
Hyundai Santa Fe — Source: Daki Post
Rather than buying a car outright, more consumers are turning to vehicle subscription services — renting a car for the period they need — as a new mobility consumption model.
With new-car prices climbing and ownership costs rising, more buyers are choosing usage-focused mobility services instead of purchasing vehicles outright.
That trend is accelerating alongside the spread of shared-mobility culture, and the market is expanding quickly.
In response, automakers and mobility companies are treating vehicle subscriptions as a strategic business and moving to expand related services.
Hyundai Motor plans to expand mobility business by amending its charter
and to operate subscription and rental services directly
Hyundai Santa Fe — Source: Daki Post
Hyundai Motor plans to propose adding \"vehicle rental business\" to its corporate charter at the annual shareholders' meeting at its Seoul Seocho-gu headquarters on the 26th.
The amendment is viewed as a step to move away from a sales-focused structure and lay the groundwork for Hyundai to operate subscription and rental mobility services directly.
Hyundai already operates subscription services Hyundai Selection and Genesis Selection. Customers can book vehicles by the day or month and sample a range of models, from sedans to SUVs.
About 56% of users are in their 20s and 30s, indicating subscription services are taking root as a new way to consume vehicles.
If the charter change is approved, Hyundai could move from partnering with rental companies to securing and operating its own fleet as it scales the business.
Kia and KG Mobility also expand subscription services
Genesis GV80 — Source: Daki Post
Kia is also aggressively expanding its subscription-based mobility services.
Kia offers the \"Kia Flex\" subscription through a mobile app, giving users short-term access to models such as the Ray EV, EV9 and K9.
Subscribers can swap vehicles on a monthly basis, and longer-term subscribers receive discounted rates.
Service areas have also expanded beyond Seoul and the greater capital region to major cities including Busan, Daejeon–Sejong, Gwangju and Daegu.
KG Mobility joined the market last year with a vehicle subscription called \"Mobilling.\" Customers can lease models such as the Torres and Actyon on a monthly basis, with insurance, taxes and maintenance bundled into the fee.
Notably, many plans let customers drive on a monthly subscription without a deposit or down payment, and include vehicle inspections and consumable replacements as part of the service.
Market expands to car sharing and tire subscriptions
Car-sharing firms and tire makers roll out subscription options
Genesis GV80 — Source: Daki Post
As the vehicle subscription market grows, car-sharing companies are beefing up related services.
Socar has improved its revenue structure around car sharing and returned to operating profit last year. This year it plans to expand premium imported models—such as Tesla, Porsche and Volvo—within its subscription offering, Socar Plan, to boost competitiveness.
Subscription models have also emerged in the auto-parts sector. Kumho Tire converted its on-site tire installation service—which it had operated with a rental-platform partner—into a subscription offering.
Industry experts say rising vehicle prices, higher ownership costs and the spread of shared mobility are combining to shift car consumption from ownership toward usage.
Demand for subscription services is expected to expand further among younger consumers, who face substantial upfront purchase costs.
