Carmakers could make billions by selling subscriptions alone

GM’s projections claim that by 2030, subscription fees alone would bring in as much as $25 billion a year.

According to media reports, the auto industry is shifting into overdrive with subscription fees for in-car features. The automakers are reportedly counting on subscription fees to become a new revenue stream to pay for the expensive transition to EVs.

Carmakers are placing multiple in-car features behind a paywall, forcing customers to pay extra for their usage. Reports took the case of a Volvo XC90 owner as an example, stating how he had to pay $200 a year to be able to start & stop his car via an app on his smartphone after the free trial period was over. The report also mentioned how Toyota charges $8 per month for the remote start option, while BMW owners have to pay $20 per month to be able to use the car’s enhanced cruise control features.

Alix Partners – a global consulting firm, recently found that 60% of customers are willing to subscribe for enhanced safety and convenience features, as long as they don’t feel like they are being charged for something they’ve already paid for. Mark Wakefield, CEO of Alix Partners, stated, “The car has to be cheaper, plus this option of subscribing.”

Reports state that GM’s projections claim that by 2030, subscription fees alone would bring in as much as $25 billion a year.

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