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Automakers plan to generate a huge income with monthly subscription systems

Subscription systems that we encounter on digital platforms have also started to appear in today's vehicle technologies. The new system, where a monthly fee is charged for extra features, is becoming more and more common.
 Automakers plan to generate a huge income with monthly subscription systems
READING NOW Automakers plan to generate a huge income with monthly subscription systems

With the development of today’s automobile technologies, manufacturers such as Lexus, Toyota and Subaru have begun to charge fees to use various smart features in cars. According to new information, auto companies are planning to generate a large income by offering monthly or annual subscriptions to customers to access certain features.

It can get harsh reactions from users

Tesla’s new subscription system, which has developed with wireless software updates for cars and is expected to spread to the mainstream, will allow extra capabilities to be added to internet-connected vehicles or to enable and disable some features remotely. However, users will pay monthly for extra features such as advanced cruise control or heated seats.

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About the new feature, which is expected to receive great reactions from users, JD Power analyst Kristin Kolodge stated that the subscription system will provide manufacturers with a recurring income stream for years from the first purchase, and thinks that it will improve brand loyalty on the user’s side.

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