The Vehicle Subscription Market Is Expanding The Trend Makes Sense, but the High Monthly Fee Feels Burdensome

Hyundai Motor Company has launched a monthly vehicle subscription program, the “Genesis Spectrum” Vehicle Subscription Programme. While the concept of automakers offering vehicles through a monthly subscription model rather than direct sales remains relatively unfamiliar in Korea, it has already become an established form of automotive consumption in Europe and the United States. Global automakers such as Mercedes-Benz and BMW have actively entered this space, and Hyundai Motor Company itself previously introduced a subscription program in the U.S.

“Genesis Spectrum,” newly launched this time, marks the first attempt by a domestic automaker to operate a vehicle subscription program within Korea, drawing close attention as to how Korean consumers will respond.

A More Advanced Concept Than Rental or Car Sharing: “Vehicle Subscription”

Genesis, the premium brand of Hyundai Motor Group, is operating the monthly subscription program “Genesis Spectrum” from December 13 for a period of ten months in collaboration with Hyundai Capital’s car-sharing platform Dealcar and small rental car companies. The program allows subscribers to rotate among all Genesis models.

Under the program, customers pay a monthly subscription fee of KRW 1.49 million (including VAT) and may switch between three models G70, G80, and G80 Sport up to twice per month. In addition, subscribers may use the flagship Genesis G90 free of charge for 48 hours each month.

The term “subscription” is commonly translated into Korean as “monthly membership registration,” referring to a system in which users pay a fixed monthly fee. Recently, the so-called “subscription economy” where consumers pay recurring fees to rent premium furniture, access unlimited music streaming, or receive regular deliveries of daily necessities such as razors or cosmetics—has become a major distribution trend.

Although vehicle subscription programs have become an established form of car consumption in Europe and North America, they remain relatively unfamiliar in Korea. Unlike ownership through purchase or leasing, subscription programs require customers to return the vehicle when monthly payments stop, making them a form of rental.

While similar to traditional car rental particularly long-term rental there are key differences. Rental services typically involve exclusive use of a single vehicle, charges based on rental duration, and additional fees for contracts and insurance when switching vehicles. Subscription programs, by contrast, operate on a monthly fee basis and allow users to switch between different vehicle models without additional costs.

Vehicle subscription programs also resemble car sharing in that vehicles are used by multiple users. However, domestic car-sharing services are closer to short-term rentals, with fees calculated based on minutes used and distance traveled, and require vehicles to be picked up and returned at fixed locations. Subscription programs offer greater flexibility, allowing customers to receive and return vehicles at locations of their choice.

Moreover, while domestic car sharing fleets mainly consist of compact and economy vehicles, subscription programs including Genesis Spectrum primarily feature mid to large luxury vehicles, targeting a different customer base.

Growth of the Sharing and Subscription Economy = Declining Vehicle Sales

Following the global financial crisis triggered by the U.S. subprime mortgage crisis in the late 2000s, consumer behavior shifted significantly. Rather than purchasing high-priced assets such as homes and vehicles through debt, consumers increasingly prefer to pay only for what they need through rental and sharing. Automobiles, which rapidly depreciate over time, are particularly prone to purchase avoidance.

Alongside this shift, consumers have increasingly preferred experiencing multiple products rather than owning a single item. This trend accelerated the growth of the sharing and subscription economy. Advances in IT based logistics and distribution further enabled the rapid growth of startups offering such services.

These developments contributed to the rise of car-sharing startups such as Uber, Lyft, and Zipcar, which in turn had a direct impact on global new car sales. In 2017, the World Economic Forum (WEF) forecast that the steady increase in global new vehicle sales over the past century would soon reverse, predicting a roughly 40% decline in North American new car sales by 2025. In Korea, new vehicle registrations declined year over year despite a reduction in individual consumption tax.

Recognizing the need for change, global automakers have actively adapted to evolving trends. A notable example is BMW and Daimler, long-standing rivals, which jointly established six joint ventures to strengthen their car-sharing and mobility services.

Automakers Begin Recruiting Subscribers

Vehicle subscription programs emerged later than rental and car-sharing services but have grown rapidly in Europe and North America since 2017. Today, more than 50 companies offer vehicle subscription services across these regions.

Initially led by car-sharing firms, rental companies, leasing providers, platform vendors, and tech startups, the market has since expanded to include major automakers, super-luxury brands, and traditional dealer networks.

Global automakers offering subscription services include Ford (Canvas), Cadillac (Book), Volvo (Care), Mercedes-Benz (Flexperience), Porsche (Passport), and BMW (Access). Lincoln also operates a subscription program for used vehicles.

Hyundai Motor Company launched the “Hyundai Plus” subscription service in North America last year and became the first domestic automaker to introduce a subscription program in Korea with “Genesis Spectrum.” Meanwhile, another program, “Hyundai Selection,” was announced but remains temporarily postponed.

Among imported brands in Korea, MINI partnered with connected-car platform company EPIKAR to launch the subscription service “All the Time MINI.” Volvo is also considering introducing its “Care by Volvo” subscription service in Korea within two years.

Genesis Spectrum: Strengths and Challenges

Genesis Spectrum is being operated as a limited pilot program, restricted to 50 participants in Seoul over ten months starting December 13. Industry observers remain cautious about its success, particularly due to the relatively high monthly fee.

However, when compared to purchase costs and long-term ownership expenses including taxes, insurance, maintenance, financing, and resale value the subscription fee appears competitively priced. The program also allows frequent vehicle changes and includes complimentary access to the flagship G90.

Vehicles provided under Genesis Spectrum have mileage under 10,000 km, with no mileage limits imposed. Additionally, all vehicles are maintained directly by Hyundai Motor Company.

Pricing Compared to Other Brands

Some critics argue that Genesis Spectrum is not competitively priced compared to global luxury subscription programs. Mercedes-Benz, BMW, and Porsche offer various tiered subscription services in North America, often at lower entry level prices.

Volvo’s “Care by Volvo” offers monthly fees ranging from USD 650–850 without a registration fee, while Hyundai’s U.S. “Hyundai Plus” starts at USD 279 under a long-term contract.

Target Customers Matter More Than Price

Industry experts believe Genesis Spectrum’s primary customers will be corporate clients and executives, as well as younger consumers interested in experiencing luxury vehicles without long-term ownership.

An industry source commented that subscription programs serve as an entry point for future customers, emphasizing the importance of pricing aligned with younger consumers’ purchasing power.

Genesis stated,

“We are exploring various ways for customers to experience Genesis. Through Genesis Spectrum, we will analyze customer preferences and lifestyle patterns to introduce more innovative mobility programs in the future.”