Why This Company Is Confident in Month-to-Month EV Subscriptions

• Hyundai announces its new EV month-to-month subscription program, known as Evolve+, with the goal of drumming up EV adoption and providing necessary short-term transportation.

• With the Kona Electric or Ioniq 5 (above) available, seven dealerships across the US will soon allow qualified customers to try before they buy, with a one-time $300 delivery fee and a monthly cost of $699 or $899, respectively.

• Insurance, maintenance, and roadside assistance are included in the package, though subscribers are limited to 1000 miles within each 28-day period.

Convincing consumers to adopt new technology is always a challenge, as preference and familiarity run deep for long-time norms. And the automotive industry's shift toward electrified vehicles, particularly battery-electric vehicles, is no different, with EVs making up 5.8% of US sales last year. That's up from a 2.6% EV market share in 2021, but these zero-emission vehicles still have yet to hit a million units sold per year.

As legacy and startup manufacturers dump resources into EV production, they're simultaneously trying to figure out how to incentivize EV adoption. While some manufacturers simply lower prices and optimize their models to qualify for federal and state rebates, others aim for high-performance numbers or peak luxury experiences to persuade buyers. Hyundai, however, is launching a new path to EV adoption that doesn't involve buying a vehicle at all.

Partnering with its American finance subsidiary, Hyundai Capital, the Korean automaker is set to launch a month-to-month EV subscription program in the US. Known as Evolve+, the subscription plan allows customers to drive a Kona Electric or Ioniq 5 for 1000 miles per month (28 days) at a comparable cost to monthly financing or lease payments.

The company quotes pricing as $699 per month for a Kona Electric and $899 per month for an Ioniq 5, with no down payment, an acquisition fee of $300, and maintenance as well as insurance included. Notably, the program does not require a commitment for more than a single month, meaning subscribers can cancel or renew at the start of each month.

The fine print of this program says that users must be 25 years or older and have had three years of recent driving history as well as a clean driving record. Additionally, a credit score of 650 or higher is required, partnered with a valid credit card. The limit of 1000 miles in 28 days is strict, meaning you will be charged an additional $20.00 per increment of 100 miles over up to 1500 miles. If you exceed 1500 miles, however, you will be charged at a rate of $1.00 per mile. Unused miles do roll over into the next month, should the customer choose to renew.

This program will roll out gradually, starting with just seven dealerships in six states. There are two dealerships in Colorado (Denver and Boulder), as well as showrooms in Oregon, South Carolina, New Jersey, Massachusetts, and Maryland, that will be the first to participate. Hyundai plans to expand this program further, though it didn't specify when, where, or how.

Other manufacturers have attempted subscription programs before with little success. For example, General Motors' BOOK program, an $1800 monthly subscription service that allowed users to swap into a different Cadillac each month, failed less than two years after it was launched. Similar programs from Audi, BMW, and Mercedes were shuttered in 2021, following a program run of two years on average.