Automakers are investing heavily into connected vehicle technologies as consumers demand an ever-greater array of features. However, the payback isn’t as straightforward. Connected vehicle subscriptions do little to make up for the expense of providing connectivity, pushing automakers to explore new revenue streams.
“Today, vehicle connectivity is nearly imperative. Nevertheless, it incurs cost to the automaker, and there is still no consensus about who should pay for it,” observes Maite Bezerra, Smart Mobility & Automotive Research Analyst at ABI Research. “High churns from customers who see no value in renewing their subscriptions are the elephant in the room that OEMs are still trying to avoid by continuously extending free trial periods.”