Intensified Car Connectivity Competition... Hyundai to Offer Blue Link Free in the US

Hyundai Unveils Blue Link+ Service in the US
Lifetime Free OTA Features Including Remote Start and Diagnostics
Nostalgia of 1990s 10-Year/100,000-Mile Free Warranty

[Asia Economy Reporters Choi Dae-yeol and Woo Soo-yeon] Hyundai Motor Company has made a bold move to offer its connected car service 'Blue Link' free for life in the United States. Blue Link is a technology that enables remote start and diagnostics, over-the-air (OTA) wireless software updates, stolen vehicle tracking, and more. Typically, new car buyers use the service free for about 3 to 5 years and then pay a subscription fee, but Hyundai has decided to make virtually all remote services free of charge.

As consumer interest in mobility services grows, Hyundai aims to capture the U.S. market by leveraging connected technology. This strategy recalls the marketing approach from the 1990s when Hyundai significantly extended warranty periods amid durability concerns. However, by offering such unprecedented terms first in the U.S., Hyundai is likely to face fairness debates with domestic consumers.

Hyundai Motor America announced on the 9th (local time) at the Chicago Auto Show the launch of the connected car service program 'Blue Link Plus (+)'. The new 'Blue Link+' features an extended free usage period compared to the existing service.

From now on, anyone switching to Hyundai or purchasing a Hyundai for the first time in the U.S. can use Blue Link services free for life. There is no transition to paid service after a certain period, nor any subscription fee. The 2024 model lineup, including the Ioniq 6 scheduled for release in the U.S. this year, will be eligible.

Hyundai first introduced Blue Link in the U.S. in 2011 on the Sonata model. Blue Link supports vehicle remote control, safety and security services, vehicle management, navigation, music streaming, digital key functions, and more. It is considered one of the major factors influencing consumers' vehicle choices recently.

Until now, Hyundai in the U.S. has provided Blue Link free for 3 years to new or first-time car buyers. The newly expanded 'Blue Link+' promises free service for life. Compared to the domestic market, where free service is offered for 5 years to new car buyers, this is a groundbreaking marketing move.

Previously, Hyundai differentiated repair warranty periods between the U.S. and Korea. The relatively shorter free warranty period in Korea sparked controversy among domestic consumers over discrimination. Similarly, this difference in Blue Link service policies is expected to raise fairness debates between consumers in the two countries.

A company representative explained, "We differentiate services and pricing plans according to regional market conditions and circumstances, not as discrimination," adding, "Unlike Korea, where free service continues for a certain period even if the vehicle is resold, the product is designed reflecting local market characteristics by limiting it to new or first-time car buyers."

This marketing strategy is aimed at aggressively increasing market share in the U.S. Hyundai previously launched a groundbreaking after-sales service (AS) marketing campaign in 1998 in the U.S. offering a '10-year/100,000-mile warranty.' This was a direct response to quality issues during the early export phase to the U.S.

The philosophy of Honorary Chairman Chung Mong-koo, who was willing to bear enormous initial costs to change the brand image, was reflected in this. The industry-leading AS warranty helped Hyundai establish itself in the U.S. By the 2000s, quality issues were no longer a concern. Now is the time to differentiate through mobility services such as connected cars, artificial intelligence (AI) remote control, and autonomous driving, competing with global automakers.

Hyundai’s free Blue Link service policy is revolutionary even compared to local competitors. Toyota, which offers the most similar service level, provides automatic collision assistance, SOS assistance, vehicle theft tracking, remote diagnostics, and OTA software updates free for 10 years. In contrast, Hyundai offers all services except map remote updates free for life. Hyundai aims to captivate U.S. consumers by combining connected car technology with its growing share of durable electric vehicles.

Manish Merotra, Head of Digital Business at Hyundai Motor America, said, "Other automakers follow traditional subscription models and mostly charge monthly fees for safety and convenience features. Hyundai will lead the industry by standardizing customer experience enhancement technologies."