[RahulNagaraj]

Hyundai could be the latest carmaker to get onto the 'subscription fee' bandwagon. According to reports, the South Korean carmaker is considering introducing pay-to-use features in its cars, to keep them connected to their customers post-sale.

Marcus Welz, Head of Hyundai Connected Mobility, stated, "We are looking at feature-on-demand as an option, in order to add more personalisation in the car." He further mentioned, "For years we worried about how we were going to sell more cars. Today we worry about 'what if all we do is sell cars?"

Adding to this, Andreas-Christoph Hofmann, VP for Marketing, Product & PR, Hyundai, stated, "The future of mobility, from today owning cars to transferring to subscriptions."



As per reports, Hyundai plans to restructure its BlueLink connected technology, which currently allows owners to control a number of features, including pre-conditioning, locking/unlocking car and sat-nav. The restructured tech will come on a larger 10.25-inch infotainment screen and be offered in 3 grades: Lite, Plus & Pro. The Lite pack will be free for the first 10 years and will come with in-car map use & only service only. The Plus pack costs 2.99 euros a month and will give access to all remote services. For the top 'Pro' pack, Hyundai will charge 9.99 euros a month and will provide data-driven services, in-cat payments and "connect drivers with surroundings".

Welz further stated that the benefit of feature-on-demand is "to bring new features into older cars." He further mentioned, "A lot of advancements can actually be done through the software, so you can utilise the existing hardware. We will keep developing these features and functionality and then we will provide them to users."

Source: Autocar UK

Link to Team-BHP news

[IC_Morningstar]

This is probably the worst things in the history of automobile where manufacturer comes up with subscription based features. We paid the full price upfront then why to pay rent for that. It is not like the manufacturer is giving any discount to the ICE system. The EU should come with certain rules to prohibit these practices.

[sh3lby]

Absolutely not. No way in hell is this acceptable, if I pay for the hardware I won't pay more for using it. I don't care about your company's infinite growth/revenue model - if a pay X lakhs to buy a car, which has the hardware for a certain function, I don't want to pay more to "unlock" it. It's a different case if I buy a lower trim and then yearn for an upmarket feature, too bad. If the thing is there in the car I bought, I'd rather have it and not use it then need it but have to first pay a subscription fee and be 'allowed' to use it. Not even commenting on critical features.
The silver lining I see is what the man said about bringing newer features to older cars with the available tech, via software updates. That seems like something.

[On4Wheels]

It is expected. The connectivity feature is a golden goose for the car manufacturers. At present, these in-car features are free because it is in development stage and at the same time, industry wants to maximize the reach of the same. So they are pampering us now by giving it free and making it an essential part of our life. As data is the new oil, we will be forced to buy both chemical and virtual fuel for getting some driving pleasure.

[humyum]

Add 100-200 dollars or 10-12 thousand to the car's ex showroom price an and sell it to the customer, why trying to be a tech company when in reality you are a car manufacturer?

This is an extremely negative experience for a customer from the word go.

[Cresterk]

Originally Posted by IC_Morningstar

This is probably the worst things in the history of automobile where manufacturer comes up with subscription based features. We paid the full price upfront then why to pay rent for that. It is not like the manufacturer is giving any discount to the ICE system. The EU should come with certain rules to prohibit these practices.

From what I understand, this is for server based features only and servers cost money to maintain and run.

Not like BMW's and tesla's subscriptions for heated seats, extra acceleration, ADAS etc.

[freelancer6202]

It will not work except in high-end brands. As a potential Hyundai buyer, I will immediately change my mind about Hyundai if I have to pay for even a single feature after buying the car.

[Raghu M]

I think if they focus more on safety rather than techniques to fleece customers, the company will gain more credibility. You have one screen in a car which is a long term investment for the company. Since you keep using it regularly, they want the company to gain from it. As long as it's only maps or some stats, it's fine but if they lock features like auto headlamps, wipers and cruise control through the app, then Hyundai will be in for a big surprise in India.

[Aakarsh Gupta]

Looks like Hyundai took a leaf out of EA's playbook. They'll crash and burn for this if it ever becomes mainstream.

[Hume]

I can understand the knee-jerk reaction to such a system for I myself experienced it. It's the mistrust towards manufacturers and the apprehension of them taking advantage of such a system that invokes overall fear but contrary to popular opinion, subscription based system can be a win-win if done in the right spirit for the simple fact that not everyone needs every feature. You might not want ADAS or heated seats, I might prefer more power. While someone might want all the features available, others might want just barebones.

Instead of having multiple variants that feel like menu options at a restaurant, a manufacturer could essentially have one to three variants (only differentiated by physical features) and then one can get to choose specifically the features he/she wants and 'rent' them ONLY until the vehicle is kept. This can bring the price of the vehicle down since the manufacturer will have other avenues of revenue that is in addition to the sale price and is recurrent, thereby bringing the cost of ownership down as well. By doing so, it also helps a vehicle to stay relevant for longer periods thereby aiding sustainable practices. All this will in turn further help the 2nd and 3rd buyers of the same vehicle to opt for the features they actually need.

For all the hue and cry and the back clash that it will attract initially, it is an inevitability and most manufacturers will go the subscription way.

I will say this however - the onus falls on the manufacturers to allay such fears and incorporate a system that is bereft of greed and that can actually benefit the consumers just the same. Basically, if done well, a subscription based system is the ideal way of doing things IMO.

[Ltinsane]

Originally Posted by Hume

Instead of having multiple variants that feel like menu options at a restaurant, a manufacturer could essentially have one to three variants (only differentiated by physical features) and then one can get to choose specifically the features he/she wants and 'rent' them ONLY until the vehicle is kept. This can bring the price of the vehicle down since the manufacturer will have other avenues of revenue that is in addition to the sale price and is recurrent, thereby bringing the cost of ownership down as well. By doing so, it also helps a vehicle to stay relevant for longer periods thereby aiding sustainable practices. All this will in turn further help the 2nd and 3rd buyers of the same vehicle to opt for the features they actually need.

What you are saying sounds right but it's not exactly what's going to happen.
Selecting specific features for each vehicle gives a lot more choice to the customer, though it may sound counterintuitive, consumers faced with too many choices are more likely to walk away than select an option. Iyengar and Lepper's study found that too many choices can derail the customer journey. Customers are actually happier with their choices when given fewer options.

Eager customers would opt for a lot of features while purchasing the vehicle, features they don't actually need and will keep paying for them for a long time. A 2022 study by brand insights agency C+R research found 42% of consumers have forgotten they were still paying for a service they no longer use.
Then there will be customers who won't opt for a feature that they might actually use but have never used before and have no idea it exists.

Finally, the automobile manufacturers will end up offering bundled packs and most people will just opt for those, which will be basically equivalent to buying the car trim in the first place.

It will just like the Satellite TV subscription where you have limited number of services provided and You have the choice to select each and every channel, but most people end up opting for Bundles.

[07CR]

Pathetic. Slowly but surely Hyundai seems to be losing the plot when it comes to equipment game. Be it Sonet/XUV3xo vs Venue, Seltos/Harrier/Carens vs Creta/Alcazar they are being outdone in the equipment game and they were known for their generous equipment levels. If that was not enough they come with this.