Hyundai Mocean subscription service may expand across Europe

Hyundai Connected Mobility is considering extending its Mocean car subscription service into Europe’s key markets. It is already available in Spain and the United Kingdom, and has just launched in Germany.

Mocean Subscription, as its name suggests, is a car subscription service. According to the company, it delivers “all the benefits of having your own car, but without the commitment of buying one”. The platform includes more than 40 Hyundai models, spanning petrol, mild-hybrid, hybrid, plug-in hybrid and electric vehicles.

How does Mocean work?

Mocean operates in much the same way as a leasing arrangement, although it offers greater flexibility over the contract term. By paying a set monthly fee, users gain access to a vehicle.

With Mocean, subscriptions can run for 1, 3, 6, 12 or 24 months. During that period, customers pay a monthly charge, with the price determined by the chosen vehicle, contract length, agreed mileage allowance and the subscriber’s age.

People under the age of 25 pay an additional monthly charge. The subscription covers every cost associated with the vehicle, including insurance, maintenance and inspections.

Essentially, the driver is responsible only for fuel, tolls and any potential fines, while the subscription can be cancelled at any time.

According to Liran Golan, director of mobility services at Hyundai Connected Mobility, “we need to pay closer attention to changing consumer needs and, naturally, to the younger generation, which no longer wants to buy or own a car”.

Golan admits that it will “take time” for Mocean to become profitable, but says the route to profitability “is clear”, adding that “it will take a few thousand active users to become profitable, but we are close to those figures”.

A bet on the future

Hyundai Connected Mobility’s director of mobility services also said that several car manufacturers are already following this approach, although he did not name them. He remains confident about the business’s potential and expects subscription models to account for between 12% and 15% of new car sales by 2030.

In Germany, the subscription market is expected to record an average annual growth rate of 33.5% by 2030, Golan said.

Boston Consulting Group estimates that the car subscription market in Europe and the United States could be worth €30–40 billion by 2030 and account for up to 15% of new vehicle sales.

This subscription system is also being seen as a way to encourage the adoption of electric cars. In Germany, most Mocean customers choose electric vehicles, the company director revealed.

David Bailey, a professor at the University of Birmingham, supported that view: “Car subscriptions are a good way for customers to ‘dip their toes’ into the electric vehicle market”, partly because of the limited commitment these services require.

“Drivers sometimes hesitate to adopt this technology (electric vehicles) because of the high upfront costs, concerns about range and uncertainty over resale value.”

• David Bailey, professor at the University of Birmingham

What about other brands?

Alongside Hyundai, other manufacturers offering subscription plans include Porsche and Jaguar Land Rover. Rental companies such as Hertz, Sixt and SimpleCar have also begun introducing this business model.

Volvo, on the other hand, also operated a subscription scheme - Care by Volvo - but was forced to withdraw the service in Europe and the United States because of insufficient demand.

Lynk & Co, a Volvo “sister brand”, arrived in Europe in 2021 with an approach based exclusively on subscription plans for its 01 model. The intention was to remove the traditional sales model and offer a subscription as a modern alternative to conventional car ownership.

However, that initial strategy failed to attract customers, forcing the brand to sell its models through the traditional route.