Car manufacturers are facing mounting criticism for locking hardware features behind paywalls, prompting some to reconsider the controversial practice. Brands like BMW and Tesla have received backlash from consumers over charging extra fees for features such as heated seats or extended battery range, despite these features being built into the vehicle.
Initially introduced as a way to generate recurring revenue, these hardware-based subscription models have proven unpopular. Automakers are now shifting focus toward software-based services, which consumers are more willing to pay for, such as enhanced navigation or unlimited electric vehicle charging.
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Mazda reignited debate with its remote start feature being locked behind a subscription package called ‘Connected Services,’ which costs $120 per year.
The automotive industry continues looking for new ways to replace revenue from traditional maintenance and repair services, especially with the rise of electric vehicles. As a result, experts predict a continued shift towards subscriptions that offer value without charging for hardware that is already in the car.
