
Subscriptions are infiltrating every aspect of life — including the horsepower of your car.
The subscription model, favored by the software industry, is now making its way into the automotive sector. Volkswagen has become the latest car manufacturer to implement this pricing strategy, introducing a monthly fee for customers to access the full capabilities of certain ID.3 electric vehicle models.
Auto Express noticed that the Volkswagen ID.3 Pro and Pro S were advertised in the UK as generating 201bhp, but could achieve 228bhp with an additional charge. Customers can opt to pay £16.50 monthly, £165 annually, or £649 for a lifetime subscription that remains with the car if sold. Volkswagen has labeled this feature as an “optional power upgrade.”
The company stated, “If customers want a more dynamic driving experience, they now have the option to enhance it throughout the vehicle's lifespan, rather than paying a higher initial cost from the beginning.”
Volkswagen is not alone in this tiered subscription trend; other European manufacturers such as BMW, Mercedes-Benz, and Polestar have also begun offering upgrades through monthly fees.
These companies argue that such plans provide control and flexibility while allowing for continuous updates. They also create a steady revenue stream for car manufacturers, enabling upselling opportunities after the sale and collecting valuable customer data. Essentially, they are transforming vehicles into platforms, mirroring a model that has gained popularity in the software realm.
The era of one-time payments for applications is fading. Subscriptions, boosted by services like Spotify, Netflix, and productivity apps in the early 2010s, have become the prevailing model.
There's even a new category of tools designed to cancel unwanted subscriptions, and naturally, they are available by subscription as well.
The cumulative expense of these services can accumulate significantly, potentially trapping consumers in a cycle of continuous payments for assets they do not own, reliant on providers who can easily increase prices or modify features.
While one could simply choose not to pay and forfeit access to these services, it might be more effective to initiate a strong public response. This approach previously prompted BMW to abandon its plans for charging customers monthly fees for heated seats already installed in their vehicles.
Alternatively, we might see subscription culture infiltrate our daily lives further, leading to a situation where some tech mogul begins to impose a monthly fee for basic necessities like air. Personally, I plan to express my discontent financially while making my voice heard from behind my computer.
Subscriptions are infiltrating every aspect of life — including the horsepower of your car.
Complete EV performance now requires a monthly subscription. Welcome to the era of subscription services.