new business case – vehicle functions by subscription

Subscription models are setting the trends

More and more vehicle manufacturers are offering subscription models for additional vehicle functions.
Examples:

• At Mercedes-Benz USA, better acceleration (“Acceleration Increase”) is now available for EQS and EQE for $1,200 in an annual subscription. (acceleration of 0.8 to 1.0 seconds (0-100 km/h)
• In europe, Mercedes-Benz offers in the ‘mercedes me’ store functions such as Remote Parking Assist, Adaptive Highbeam Assist, rear-axle steering with a large steering angle, etc.
• BMW, for example, offers heated seats or steering wheel heating as a monthly subscription.
• AUDI, with “Functions on Demand”, offers e.g. 2-zone climate control, matrix light, high beam assistant, driving assistance systems, digital radio etc. by subscription.
• At Tesla, basic functions such as navigation, voice control or WLAN-Access are now only offered by subscription (this means also: no more information about Supercharger charging space availability)
• ….. and even motorcycle builders are now jumping on the train. For a fee of around $1,800, buyers of a 2022 SR from Zero Motorcycles can increase power from 74 hp to 113 hp via a software upgrade.

Numerous advantages for car manufacturers

From a carmaker’s point of view, this has a certain charm: instead of having to complexly assemble each new car with the various options from the accessories catalog according to the customer’s wishes (e.g. there would be no need to make a seat without heating at all if...