Cue from Netflix? Car brands look to cash in on subscription services

Car companies expect to make billions in revenue from software and subscription services.
By : HT Auto Desk
| Updated on: 15 Dec 2021, 10:33 AM
File photo used for representational purpose. (HT Auto)
File photo used for representational purpose. (HT Auto)
File photo used for representational purpose. (HT Auto)
File photo used for representational purpose.

Much like how many buy a television set and then opt for subscription services from streaming platforms, modern-day cars also may be bought with the additional attraction of opting for certain subscription-based models. As such, car manufacturers are paying close attention to the kind of services that can be offered on newer models that will come as an optional extra, allowing the brands to make more moolah post the car-purchase process.

Thus far, car companies' main revenue comes from selling vehicles and from post-sales service costs. While these two are likely to remain at the core of the revenue model, there is a third option that is appearing more and more viable with massive advancements in in-car connected technologies.

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Maruti Suzuki S-presso (HT Auto photo)
Maruti Suzuki S-presso
998 cc | Petrol | Manual | 24.12 kmpl | 66 bhp
₹4.25 - 5.99 Lakh**Ex-showroom price
Kia Sonet (HT Auto photo)
Kia Sonet
1197 cc | Petrol | Manual | 18.4 kmpl
₹6.79 - 13.55 Lakhs**Ex-showroom price
Maruti Suzuki Dzire (HT Auto photo)
Maruti Suzuki Dzire
1197 cc | Petrol | Manual | 23.26 kmpl
₹5.89 - 9.09 Lakhs**Ex-showroom price
Tata Nexon (HT Auto photo)
Tata Nexon
1199 cc | Petrol | Manual | 17.4 kmpl
₹7 - 13.24 Lakhs**Ex-showroom price

Take GM for instance. The American car company expects to earn $25 billion by 2030 through software and subscriptions alone. Then there is Stellantis that expects to earn $23 billion by the same year and through the same way.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Thus far, car companies have offered more features, better upholstery and better drive capabilities within several variants of the same model to distinguish each variant. This means pricing has been varied within a particular model. But there is a chance that moving forward, a model comes fully loaded in terms of features and materials with only subscriptions being the difference.

But services come at a cost. Auto experts feel that companies will soon have to ensure that manufacturing cost of a mass-market model has to come down so that the purchasing price is kept in check while still ensuring a decent margin for the companies. On top of this could be the subscription-based services that could take off on the same lines as streaming platforms have in recent years.

Tesla has already started rolling out in-car games and video-conferencing features. Many others are following closely. The time for a car being just a car may well be fading already.

First Published Date: 15 Dec 2021, 10:33 AM IST
Recommended For You
View All

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city