In an effort to reduce the high upfront cost of electric vehicles and address concerns over battery lifespan, Hyundai Motor Group has initiated a pilot electric vehicle (EV) battery subscription program for fleet taxis. The trial, set to begin in the first half of this year, will separate battery ownership from vehicle ownership, allowing operators to subscribe to batteries rather than purchase them outright.
Under the program, five Ioniq 5 taxis with expired warranties—operated by Hyundai Motor and financed through Hyundai Capital Services—will run in the Seoul metropolitan area. Taxi operators will pay a fixed monthly fee to access batteries, with replacements provided as needed by the finance firm. Used batteries will be collected for further inspection and potential refurbishment.
This pilot has been made possible by a regulatory sandbox approval granted in November 2025 by the Ministry of Land, Infrastructure and Transport, which waives provisions of the Motor Vehicle Management Act that currently treat EV batteries as inseparable from their vehicles. By decoupling battery costs, Hyundai Motor Group aims to lower barriers to EV adoption, extend vehicle lifespans and establish a scalable business model.
Concurrently, Pit In—a Hyundai Motor spin-off specializing in battery-swapping infrastructure—has been operating a similar subscription and swap service in Anyang, Gyeonggi Province since September 2025. In cooperation with Hyundai Motor, Kia and Hyundai Glovis, Pit In supports around 30 taxis with fast battery exchanges, completing swaps in roughly 10 minutes. A second swapping facility is planned in Incheon.
Industry figures suggest that, after subsidies, a battery-equipped Kia EV6 taxi could cost approximately 18.6 million won upfront, with battery subscriptions estimated at 1.4 million won per month—potentially more economical than conventional LPG taxis, which demand about 27 million won initially and monthly fuel expenses between 1.5 and 1.8 million won.
Hyundai Motor Group plans to expand the subscription service to individual consumers later this year, although details on scale and duration remain under review. Observers note that similar models have gained traction abroad, most notably with a leading Chinese automaker that has deployed nearly 3,800 swap stations and achieved over 100 million battery swaps.
Source: Korea JoongAng Daily
