Motor Industry Update 13 August 2021

Hyundai Mocean Subscription Service

Hyundai launches new Mocean subscription service for electric and hybrid models

A new all-in-one monthly subscription service has just been launched by Hyundai Motor that covers its line-up of hybrid, plug-in hybrid and fully electric models. Hyundai Mocean offers a new convenient driving experience for Hyundai’s electrified model range, whereby drivers pay a single monthly fee to cover all major motoring costs, starting from £339 per month.

Drivers can take out subscriptions for as little as three months and for as long as 24 months, and are taken out via a fully digital process, where they choose the car they want and how long they want it for. Once approved, the car will be delivered to them within a matter of days, or they can pick it up from a local Hyundai retailer.

Included in the subscription are just about all the major motoring costs such as insurance, roadside assistance, road tax, and maintenance and repairs at authorised Hyundai dealers. Mocean Subscription customers can also opt to change their vehicle every six months should their lifestyle and circumstances change, and should they wish to cancel their subscription, they can do so with just a month’s notice.

Ashley Andrew, Managing Director, Hyundai Motor UK commented on the new subscription service by saying:

“We’re excited to launch Mocean here in the UK, giving us the opportunity to bring Hyundai’s range of advanced electrified vehicles to an entirely new type of customer. For those that a traditional PCP or HP agreement simply doesn’t suit, or for those that want the simplicity of one monthly payment and the flexibility of a one-month cancellation period, Mocean delivers. For us, this new innovation marks the beginning of a journey from car manufacturer to mobility service provider, finding new and innovative ways to help enrich our customers’ lives.”

Consumer car finance market up by 12% in June

The consumer car finance market reported a growth of 12% in new business volumes for June 2021 in the latest figures released last week by the Finance & Leasing Association, compared with June last year. In fact, new business volumes were 31% higher for the first six months of the year compared with last year.

New business volumes were up by 25% in June compared with June 2020, while the value of new business grew by 29%. In the first half of 2021, new business volumes in this market were 31% higher than last year with the percentage of private new car sales financed by FLA members in the twelve months to June 2021 standing at 93.2%.

Looking at the consumer used car finance market, new business volumes increased by 6% in June compared with last June, while the value of new business grew by 9%. In the first half of 2021, new business volumes in the used market were also 31% higher than in the same period last year.

Vauxhall Light Commercial Vehicle

Photo credit: Vauxhall

Semiconductor supply shortages impact new van sales

The latest figures released last week by the Society of Motor Manufacturers and Traders show that the light commercial vehicle market saw its first decline since December 2020 as July registrations fell -14.8%. This was caused by supply issues, most notably with the world-wide shortage of semiconductors, which meant that only 23,606 vans were registered during the month. Despite this challenge, July’s performance was only a moderate -4% decline compared to the pre-pandemic five-year average.

Demand for larger vans weighing more than 2.5-3.5 tonnes, saw a decrease of -5.2% to 16,653 vehicles, while other van segments saw larger declines in demand compared to last year, with registrations of vans weighing less than or equal to 2.0 tonnes down -38.2% and those of vans weighing more than 2.0-2.5 tonnes down -41.4% to 907 and 2,680 vehicles respectively.

That said, year-to-date registrations are still up 57.5% on last year, at 78,542 more units, with the market also increasing by 1.1% on the pre-pandemic 2015-2019 five-year average.

The increase in van sales over the course of the year is due to a growth in demand from businesses renewing and expanding their fleets, largely down to the rising demand for online delivery business and the construction sector.

The SMMT’s latest quarterly forecast forecasts that the LCV market will increase by 24.3% to 363,880 units in 2021, which is a modest reduction of -1.5% from April’s forecast of 369,000 units and would leave it just under the total number of vans registered in 2019.