Software plays a very important role in today’s automotive landscape, as it is used to govern the numerous features found in modern cars. This development has resulted in customers benefitting from an improved user experience, but automakers also stand to gain as well.
In recent times, we’ve seen automakers introduce subscription models that require customers to pay a fee to unlock certain features that are already built into the cars that they purchased. For example, Tesla launched its Full Self-Driving subscription package in July for customers that want additional features on top of the standard Autopilot system.
Many moons ago, BMW rolled out a subscription service for Apple CarPlay use on its models, although this was dropped soon after. Even the new Mercedes-Benz EQS is not devoid of subscription features, as customers in Germany will reportedly need to pay a fee to unlock the full capabilities of the electric vehicle’s rear-wheel steering.
The introduction of subscription features serves to provide automakers with an additional source of revenue beyond just aftersales when a customer purchases a car. This especially crucial for EVs, which are significantly cheaper to maintain compared to internal combustion engine cars. This trend of “add-on options” isn’t specific to the automotive industry either, as device makers also employ a similar strategy; look at the Apple One subscription plan offered to Apple customers.
With this trend looking set to be more widespread in the future, how are automakers in Malaysia approaching it and would customers be receptive to subscription features? These questions were posed to Mercedes-Benz Malaysia (MBM) during a recent media roundtable attended by Sagree Sardien, president and CEO of MBM as well as Michael Jopp, VP of sales and marketing at MBM.
“I think you could say that about anywhere in the world, right? Whether customers would be receptive to these digital service offerings that we have. Therefore, we have to start off on a small scale where we start offering this and what makes sense, trial it, test it, look at the data,” said Sardien.
“If, in the end, we can show the customer the value and the benefits, I’m quite sure that they will adopt this and they will continue to do it. In the beginning, we will start it as part of our digital journey, where we offer these digital services plus products, and we will select what makes sense for the Malaysian market,” she added.
“We would have to do some research on what practical features we believe, at the end of the day, Malaysian customers would be interested in, bring those first in, trial them, test them, and make a decision on how we want to move forward,” Sardien explained further.
While no timeline was given on when we can expect subscription features to be present in Malaysia, Jopp noted that, “at this moment, we can certainly also confirm that these kinds of special features will be offered in Malaysia at one point in time.”
So, how do you feel about subscription features? Would you be willing to pay extra to unlock certain functions in your car? There are pros and cons to this, with the latter being the obvious fact that you have to fork out extra monthly or even annually to use certain car features.
However, if you don’t plan to use particular features, there is an avenue to save some money. Additionally, the practice also has other cost benefits via a more streamlined production process. Having software-locked features means there are less mechanical variations on the vehicles, so they can be assembled more efficiently. For example, Mercedes-Benz no longer needs to manufacture two different versions of the EQS, say one with rear-wheel steering and one without.
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If similar functions are offered by mass market brands, then what’s the point of paying extra to subscribe? It’s not like paying extra for crystal or diamond dash board to look luxurious, some of the vry basic functions especially safety system are not even offered by these so called luxury brands in the first place, which is exploiting the customers.
So will the feature “relocks” once you stop paying?
Yes
Imagine the brakes stops functioning when you forget to pay the bill….
Buy Volvo, get full spec features at the price of a mid spec Mercedes.
Which Volvo has four wheel steering?
Four wheel steering is useless, if you need it to park a humongous XC90, means you can’t drive.
So “Volvo full spec” means all features considered “useless” are missing? :-)
With Volvo’s Dynamic Steering system, you don’t need 4 wheel steer
Volvo Dynamic Steering has nothing in common with four wheel steering.
There is a good reason why 4 wheel steering is not widely used today. In the past , even the late 1980’s Honda Prelude has it. That was a problematic system that Honda never go back to reuse.
Haha, sell Tin Kosong?
easy, don buy a lousy car like mercedes
Sorry to say this but this brand has become more & more overrated as it increasingly relies on snob appeal.
Just find Harry at your friendly workshop to unlock…
You have a point. Soon car coders/hackers services in workshops will be in high demand to crack these paywall features.
Just get the basic spec car and pay some guy in Low Yat to unlock all of the features. :D
Coders will find a way IMHO.
Hacked/pirated software usually comes with backdoor & trojans. U want a Russian or Vietnam hacker mob threaten to disable your brakes if you don’t pay them?
Have zero brand loyalty and make them work hard to sell you a car that actually will last a lifetime.
UNSUBSCRIBING FROM STUPIDITY
So if there’s a fault can i get my money back
Can we choose to view ads instead?
Buy base spec and go to shopee to find the crack lol!
Ridicolous. You already paid the car with the component inside. Then you have to pay extra just to “unlock”? theyre just making money for fun
I subscribed to BMW digital car key 5 for a year plan, after 2 months, they updated the app and the features which I paid was disabled. They told me they are checking the problem 9 months ago. Then some follow up they said they revert to German technician for further help. Then after a while the app updated now without the digital key function at all. Mm..and since then no more follow up frm them. Now the plan expiring because 1 year already. The money paid closed to rm1k washed away. Dont dont ever subscribe to useless function. They are money pit and when things happen u r on ur own.