Automakers have fallen in love with subscriptions as they open up a new revenue stream for existing vehicles.
Take the 2022 Toyota Tundra for example, which offers numerous subscriptions after the initial trial period expires. The $8 per month Safety Connect subscription provides automatic collision notification, stolen vehicle location services, and enhanced roadside assistance, while the $8 per month Remote Connect subscription allows you to remotely lock/unlock the doors, start the engine, and honk the horn from your smartphone.
There’s also the $16 per month Drive Connect subscription, which provides cloud-based navigation and an Intelligent Assistant. Customers can also opt for a $200 per year Wi-Fi Connect subscription that allows for Apple Music and Amazon Music streaming as well as a Wi-Fi hotspot for up to 10 devices.
Also Read: Vast Majority Of Car Buyers Unwilling To Pay Monthly Subscription For Most Services
That’s just one example, but it’s easy to see how multiple subscriptions can quickly add up. However, that’s a drop in the bucket as Axios is reporting that GM expects customers will pay an average of $135 per month for various subscriptions in the future. That’s a hefty sum and a recent study from Cox showed 75% of consumers don’t want to pay for subscriptions.
While a majority of consumers seem to despise subscriptions, companies have estimated they could be worth billions of dollars. In particular, Stellantis expects to make $23 billion annually from subscriptions by 2030, while GM believes they could make $25 billion annually.
Of course, consumers will likely have the final word as they’ll likely be forced to pick and choose which subscriptions – such as hands-free driving – are worth it.
H/T to The Drive
