Expanding from Platform Operator to Direct Vehicle Rentals
Effectively Seen as Entry into the Rental Car Market
Service Lineup and Coverage Areas Expected to Grow
Hyundai Motor Company is entering the rental car market. Industry observers believe the company is seeking to maximize residual vehicle value while managing inventory, by building a structure that connects new car sales, rental car and subscription services, and certified used car sales.
According to the industry on the 26th, Hyundai Motor Company will add “automobile rental business” to its business purposes at the shareholders’ meeting to be held on March 26. This is seen as preparation for entering a new line of business.
A Hyundai Motor Company official said, “We are adding this business purpose in consideration of a new entry into the automobile rental business,” and added, “We will develop businesses and services that are organically linked with our existing new car and used car businesses, and provide customers with a variety of mobility experiences.”
Previously, Hyundai Motor Company had been indirectly participating in the rental car market since 2019 through “Hyundai Selection.” Last year, it launched the integrated and revamped mobility subscription platform “Hyundai Genesis Selection” together with Genesis. The Hyundai Motor Company subscription platform (the former Hyundai Selection) is a vehicle subscription service that allows customers to rent various Hyundai vehicles as much as they want on a daily or monthly basis via a mobile app.
The subscription platform targets consumers considering long-term rental or leasing, and offers 25 models, including the Avante, Ioniq 5, GV80, and G90, on a monthly or daily subscription basis. However, the platform is structured so that partner rental car companies operate the vehicles, while Hyundai Motor Company is only responsible for operating the subscription platform.
However, with this new business purpose, the company is now expected to handle direct vehicle rentals together with its partners, and the industry views this as effectively entering the rental car market. Within the group, Kia has already included the automobile rental business among its business purposes and is operating Kia Rent-a-Car. Kia Rent-a-Car is a service in which Kia is solely responsible for work such as vehicle consultation and delivery, rental, and insurance.
Hyundai Motor Company’s entry into the rental car business was made possible after the short-term rental car business was removed from the list of business areas reserved for small and medium-sized enterprises in 2024. The company is expected to enter the market using Hyundai Capital and other group financial arms, pursuing a minimum-cost, high-efficiency strategy.
In this process, the Hyundai Genesis Selection platform could be utilized. There is also speculation that the service area will be gradually expanded, starting with certain regions such as Seoul, Gyeonggi, Incheon, and Busan. Once the supply structure stabilizes, some observers believe the company will also be able to secure price competitiveness.
A Hyundai Motor Company official said, “We will focus on supplying electric vehicles to broaden customer choice,” adding, “We also expect this to contribute to expanding the market.”
In addition, this business expansion is interpreted as reflecting the need to secure sales channels amid the electric vehicle chasm, where demand has stagnated. The industry also believes that operating vehicles as rentals and then reselling them as certified used cars will make it possible to manage their residual value.
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