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Whoever wants advantages has to pay. BMW bets on the load of “gadgets” by subscription

Unlocking certain features of a car only by subscribing to this “service” is not exactly a novelty in the sector. But, normally, it is the younger brands that propose this, because they designed their business model on that basis from the beginning. And customers, not having a long-term relationship with the brand, are not “bad accustomed”, so they don’t complain. In Europe, for example, Lynk & Co takes subscription even further, with subscription programs becoming an alternative to buying your own vehicle.

Among the so-called “traditional” manufacturers, Volkswagen has already admitted to exploring different levels of autonomous driving in this way. – in the line, by the way, with Tesla. But charging a customer a certain amount for having the heated steering wheel and seats, or the (adaptive) headlights with optimized light diffusion, or the possibility of modulating the sound of the engine is something much more specific and goes beyond charging to explore driving. attendees, which will tend to generalize. However, this is the path that BMW has chosen to follow and has already started in some markets. Just remember that unlike other manufacturers (premium and non-premium), in the models of the Bavarian manufacturer the simple connection to Apple CarPlay is paid, as if it were an option.. Now from South Korea comes the news that the Munich brand has expanded the range of equipment available for purchase or “rent” via the BMW ConnectedDrive platform. For now in East Asia, although sooner or later the logic is to expand and reinforce this new source of income in other continents, including Europe.

In South Korea, BMW offers a number of gadgets that, after a free trial period, are only available again if the buyer subscribes to their use. The steering wheel and heated seats cost €10 and €18 per month respectively (at current prices). A life annuity, a three-year subscription or even a definitive purchase is also possible, providing greater long-term savings. One of the advantages of this scheme, from the buyer’s point of view, is that you don’t really need to invest so much to enjoy certain features that you will only use occasionally. On the other hand, it is still true that the customer has already bought his BMW prepared to offer a series of comforts and functionalities that increase the safety of those on board, taking them with him everywhere.. Whether you like it or not, the weight doesn’t come off even if you don’t use them, and to do so, you have to pay extra.

The list of possible online purchases is more extensive, including options that are definitely bought, such as wireless connection to Apple CarPlay, at a cost of €305. Every time the customer decides to open their wallet, purchases or post-purchase updates are made wirelessly, always via the BMW ConnectedDrive platform. This new way of capturing income means that the hardware is included in the vehicle from the factory, although the software that activates it can never be requested by the buyer, simply because they do not want to pay more. With autonomous driving and the paraphernalia of equipment that it requires, the subscription can be more comfortable for the customer, but in the case of an electric car, the increase in weight required by a technology that is not used ends up affecting (negatively) the most basic thing in a battery-powered model, which is the ability to travel longer distances between recharges. Despite this disadvantage, the most natural thing is that the increase in autonomy is available as a post-purchase extra, to make life easier for the user on longer trips. The sporadic increase in power and charging speed itself will also tend to be an additional source of profit for builders.. According to Stellantis estimates, subscribing to after-sales features or services has the potential to generate €23 billion by the end of the decade.

Source: Observadora

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