SEOUL, April 29 (AJP) - Contrary to the expectation that the Gulf-triggered energy crisis could renew the appetite for "plugging in," EV demand remains subdued. South Korea’s Hyundai Motor Group hopes to make the choice easier through a novel concept: lending battery chargers and subscriptions.
Energy costs have climbed sharply amid the prolonged conflict between the United States and Iran.
In Korea, gasoline prices rose from 1,819.2 won per liter in the fourth week of March to 2,003.8 won in the fourth week of April—an increase of nearly 200 won in just one month.
Despite the pain at the pump, EV sales have not picked up as purchasing power remains constrained by a prolonged economic slowdown in Korea. Hyundai’s EV sales posted an overall decline in March, despite gains in some entry-level models. Ioniq 5 sales fell from 3,222 units in February to 2,382 in March and Ioniq 9 dropped from 1,751 to 1,239. Only the entry-level Casper Electric provided a rare boost, rising from 472 to 1,201 units.
Overall, Hyundai's total EV sales declined from 5,445 to 4,822 units.
Its sister carmaker, Kia, fared better. EV3 sales increased to 4,303 units, the EV5 surged from 2,524 to 6,884 units, and the PV5 jumped from 3,967 to 8,086 units, lifting Kia's total EV sales from 9,960 to 19,273 units.
The broader market trend points to a shift in consumer behavior. Global auto demand fell 7.2 percent year-on-year in the first quarter, reflecting uncertainty tied to geopolitical risks. In this climate, hybrids are gaining traction as a more practical alternative.
Hyundai Motor reported that global hybrid (HEV) sales reached 174,000 units in the first quarter—outselling its EVs (59,000 units) by nearly three times. HEV sales rose about 27 percent from a year earlier, with their share of total sales reaching a record 17.8 percent. In the United States, hybrids accounted for a record 24.8 percent of Hyundai’s sales.
The gap between EV adoption and hybrid growth highlights ongoing concerns over EV ownership, particularly regarding battery life.
“Since you usually keep a car for over 10 years, there is always concern about how long the battery will last,” said Oh Jun-su, a 34-year-old brand designer in Seoul who has driven a Kia EV4 for a year. He noted that EVs lack appeal on the used car market due to the battery factor. Replacement costs are a major hurdle, with industry estimates suggesting a new battery for a Kia EV6 can cost around 25 million won ($17,000).
Hyundai is aiming to solve this through a battery subscription model. The conglomerate will begin a pilot program in the first half of the year, starting with Ioniq 5 taxis in the Seoul metropolitan area. The program focuses on corporate fleets whose warranties have expired.
Under this model, users pay a monthly fee instead of purchasing the battery and can replace it when performance drops. This approach is supported by a regulatory sandbox that allows vehicles and batteries to be registered separately.
In parallel, the company is expanding subscription-based charging. EV charging provider Chaebi has launched a package in partnership with Hyundai, offering discounted rates for monthly fees of 9,900 won or 19,900 won. Together, these efforts suggest automakers are experimenting with new usage models to finally lower the barriers to EV adoption.
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