Hyundai will begin offering the batteries of its vehicles under a subscription service

The Hyundai Motor Group intends to begin offering a new subscription service for the batteries of its electric models. Known as BaaS, Battery As A Service, the service is expected to become available later this year, although for the time being only in South Korea. The company hopes this initiative will make electrified vehicles more accessible in its home market.

According to a representative of the Hyundai Motor Group, the service is currently in the demonstration stage, and the company plans to implement usage plans once this phase is complete. However, Hyundai will have to overcome a significant legal hurdle to introduce BaaS to the local market.

South Korea’s current Automobile Management Act prevents companies from launching a battery subscription service. The law defines the battery as a product linked to the vehicle and does not allow carmakers to separate its ownership. Nevertheless, the government is already working on an amendment that would give the green light for certain companies, such as the Hyundai Motor Group, to launch this type of service.

What else do we know about the launch of this new service?

The Hyundai Motor Group will offer BaaS on commercially available vehicles such as the KIA Niro Plus. This model, based on the first generation of the KIA Niro EV, features a motor delivering 150 kW of power and 395 Nm of torque, paired with a 64 kWh battery pack. As a result, it is capable of covering 392 km on a full charge. In South Korea, its price starts at 46 million won, which converts to roughly 31,000 euros. Hyundai currently offers a 10-year or 200,000 km warranty on the high-voltage battery pack fitted to this model.

It goes without saying that the battery pack is the most valuable individual component of any electric vehicle. In South Korea, it accounts for approximately 40 percent of the cost of an electric car, which has a market price of around 33,000 euros at current exchange rates. Excluding this cost can lead to a significantly lower initial selling price, making them far more affordable. On the other hand, battery swapping gives customers greater flexibility: they can upgrade to a more advanced battery pack when they need more range, or switch to a smaller one when they need less range and want to reduce their monthly payment.

The BaaS service of the Hyundai Motor Group has the potential to transform the electric vehicle market in South Korea, making these cars more accessible and convenient for a larger number of consumers. If the response from the South Korean public to this initiative is favorable, it is not out of the question that Hyundai will extend it to other markets in the future.