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CDA
January 23, 2023
Subscriptions are the next big business Volvo sees in the automotive world… and its EX90 SUV is going to debut them.
We have already spoken to you on some occasion about the future business model that the main car brands are developing. We refer to the subscriptionswhich will allow electric vehicle owners to receive updates, new content or new features without having to change cars: only receiving OTA (over the air) updates.
Volvo is one of them and has just announced that will work with the telecommunications company Qualcomm to offer new subscription features on its all-electric EX90 SUV, as well as other future models.
A controversial business model but with many possibilities
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This has been announced by Volvo’s director of product definition and partner management, Martin Kristensson, in statements to Auto News Europe, The Swedish manager has indicated that Volvo needs to explore new sources of revenue based on the software, since now cars last longer.
“We will see that cars have to last longer and that more of the value is provided by software, so we will have to find new business“Kristensson explained. “Certainly there is an opportunity for subscriptions for some of the features on the vehicle.”
Kristensson noted that the EX90 is the first Volvo vehicle where new features can be added over time. Some features could also be monetized over time, such as the audio content, digital services and navigation content.
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“What we can monetize are the things that go beyond, both the functions focused on the car, such as automatic parking, as well as digital services,” he added. «Autonomous driving is time saving, and time is the most precious resource. If I can save another half day, that’s probably worth a lot.”
For now, the first attempts to implement this type of business by other brands has been met with reservations or dislike by motorists… but you have to remember that a few years ago you didn’t pay for television and now there’s hardly anyone who doesn’t.
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