Mitsubishi, AES Aim to Spur Consumer Adoption of EVs
Mitsubishi and AES Corporation have announced a $7 million Series A investment in Motor to expand the start-up’s new electric vehicle subscription service.
Mitsubishi and global energy company AES have co-led a $7 million Series A investment in Motor, a start-up that has developed an electric vehicle (EV) subscription service that simplifies EV ownership for consumers.
Incentivized, in part, by the recent Inflation Reduction Act (IRA), the larger automotive industry has the ambitious goal of growing EV sales to 50% of total US vehicle sales by 2030. However, for consumers, purchasing an EV comes with a new set of requirements that don’t exist for traditional gas-powered vehicles.
With its EV subscription service, Motor intends to simplify the EV purchase and ownership process for consumers, driving the adoption of the new technology and the electrification of personal mobility.
EV subscription customer. Image used courtesy of Motor
EV Ownership as a Service
Motor offers consumers what they refer to as an “all-inclusive electric car subscription service.” Similar to a regular car lease, subscribers do not own the vehicle, but unlike traditional leases, the monthly fees include costs unique to EV ownership, like a home charger and participation in a utility-sponsored managed charging program.
While leases typically run for a specified number of years or months, Motor’s program operates month to month, with users responsible for monthly fees as long as they use the car. Customers can terminate their subscription at any time and also have the option to purchase their subscription EV.
Along with the home charger, the monthly subscription includes almost every other aspect of vehicle ownership–insurance, registration, vehicle maintenance, and even roadside assistance.
To start the subscription process, customers download the Motor app and choose their vehicle and plan. Several EV brands are available for customers, including Tesla, Volkswagen, Ford, Audi, and Nissan.
EV subscriptions start at $749 per month for a Chevrolet Volt or Nissan Leaf, with the luxury plan priced at $1799 per month for a Tesla Model Y or Audi e-tron.
EV subscription includes a home charger and charging plan. Image used courtesy of Motor
Utility and Other Key Partnerships
As part of its consumer subscription service, Motor partners closely with utilities to onboard them into the program and to promote their subscription service to the utility’s customers. Motor will help subscribers enroll in the utility’s managed charging program, and if a utility does not have a program, the Motor team will advise the utility on developing one.
In addition to utilities, Motor also relies on key partnerships with local dealerships and electrician groups. Local electricians are used to help with EV charger installations at customer homes.
Strategic Alignment with Mitsubishi and AES
Motor was originally incubated out of AES as part of that company’s larger strategic effort to be a Fortune 500 energy company that leads the future of energy.
Before this most recent funding, AES Indiana had seen enrollments in its EV-managed charging programs increase by 20% due to Motor’s programs in their beachhead market of Indianapolis.
As part of Mitsubishi Corporation’s Automotive & Mobility Group, the Mobility Business Division, founded in 2020, is chartered with developing new approaches to the mobility of goods and people. As part of this charter, the Mobility Business Division seeks to decarbonize personal travel and support the shift towards digitization and connected, autonomous, shared, and electric vehicles (CASE). The Motor business model is highly aligned with the overall goals of the division.
Motor will be using the new funding to expand the scope of its EV subscription services and to enter geographic markets beyond Indiana and Ohio.