Automakers Push Subscription Services Despite Consumer Resistance

Automakers are promoting in-car subscription services despite consumer reluctance. A survey found a decline in willingness to pay for connected services, citing resistance to recurring fees. Some automakers are offering temporary free trials and bundling services to attract customers. Despite initial resistance, automakers are introducing new technology and features to entice drivers to subscribe.

Automakers are increasingly promoting in-car subscription services, despite a decline in consumer willingness to pay for connected features. According to an S&P Global Mobility survey, the percentage of respondents willing to pay for connected services dropped from 86% in 2024 to 68% in 2025 [1]. This resistance stems from the perception of recurring fees for features not frequently used.

Several automakers are offering temporary free trials and bundling services to attract customers. Ford Motor Company, for instance, provides a 90-day free trial for its semi-autonomous driving feature, priced between $650 and $900 per year thereafter [1]. General Motors' OnStar subscription can be as high as $39.99 a month after a free trial [1]. Kia Corporation offers a three-tier subscription service for owners following a three-year free trial period, which includes a charging station locator, digital key access via smartphone, and roadside emergency services [1].

Despite initial resistance, automakers are introducing new technology and features to entice drivers to subscribe. "They're pivoting to that new tech," said Daniel Ross, senior manager of industry insights with Canadian Black Book [1]. As newer technology becomes available, automakers will have more opportunities to release new generations of cars with updated software.

Automakers are also building a roadmap to make in-car technology more affordable for consumers in the long run. Stephanie Brinley, associate director of autointelligence at S&P Global Mobility, noted, "Once you have the platform and the service developed, the margin is really high" [1]. The appeal of these features is not just the connectivity itself but what it does for the owner, such as making driving easier or providing safety and security.

On recent earnings calls, General Motors projected revenue from its hands-free feature, Super Cruise, to exceed $200 million in 2025 and more than double in 2026 [1]. Ford reported that the number of vehicles equipped with the hands-free driving feature, BlueCruise, has more than doubled in the last year to just under 700,000 units [1].

As consumers become more accustomed to connectivity, their expectations of what comes with a vehicle and what they are willing to pay for will evolve. "There's probably going to be a lot of flexibility over time in how people choose to consume that," said Brinley [1].

References:
[1] https://www.nsnews.com/automotive/automakers-are-going-big-on-in-car-subscriptions-are-customers-buying-it-10992483