A recent study by S&P Global Mobility reveals that consumers are willing to pay for connected-car services, but only for ones that offer clear value or are available with a free trial. However, they are less interested in features they won’t use or already have on their smartphones.

Automakers like BMW and Mercedes-Benz have faced criticism for introducing subscription-based products and services in their vehicles. However, according to the S&P Global Mobility survey, consumers are generally open to subscriptions when they provide exposure to new features and technologies. When given the option of a free trial or existing subscriptions on newer vehicles, 82 percent of respondents said they would consider purchasing subscription-based services for future new-vehicle purchases.

The survey also emphasized the importance of offering value-added services through subscriptions. Paid functional upgrades, particularly enhanced navigation and advanced driver-assist system (ADA) functionality, are highly desirable. Safety features like high-beam assist and driving video recorder received the highest satisfaction ratings among connected services. However, features like heated seats or remote start garnered less interest because consumers are used to paying for these items as part of an options package.

GM’s decision to eliminate Apple CarPlay and Android Auto in favor of their native infotainment system is aimed at leveraging this trend by increasing subscription retention and providing access to more consumer usage data. The S&P Global Mobility survey highlighted that while consumers have concerns about data privacy, 74 percent of respondents said they are willing to share data for free services and consider automakers more trustworthy than technology companies like Google or Meta.

What was not evident in the survey was whether most consumers were willing to pay a monthly subscription for added performance. Mercedes-Benz is offering Acceleration Increase, a performance subscription that increases a car’s output by 20 to 24 percent on its electric vehicles. However, BMW has no plans to offer over-the-air performance upgrades for its future electric vehicles. This decision is not due to any technical issues, but rather because BMW believes the income generated by the subscription fees would not be profitable enough to cover the necessary technical requirements and regulations.