Volkswagen to test subscription service for options; regular OTA updates for ID.3, ID.4 from later in 2021

Volkswagen will be testing customer acceptance of pay-per-use billing and on-demand charging for optional car functions in a subscription service trial in six German cities with the ID.3 fully electric hatchback this year, reports Autocar.

The automaker has now prioritised data-driven online business models, as it explores new sources of revenue made possible by the latest electric vehicles that are permanently connected to the internet. These services could generate revenue in the range of three million euros (RM14.7 million) by 2025 and become a new, profitable revenue source for Volkswagen, said Volkswagen CEO Ralf Brandstätter in the report.

Selected models within the Volkswagen Group offer customers the option to pay for functions such as self-dipping headlamps, and several satellite navigation systems have also offered new maps and live traffic as cost options, the magazine reported.

In addition to the subscription service trial, Volkswagen will also be rolling out regular over-the-air updates for the ID.3 and ID.4 every 12 weeks starting later this year

“Today you can get infotainment functions on demand, and there are features that can be activated such as automatic cruise control. Now if you have an ID.3 in the future, features such as travel assist, stop and go, lane assist and ACC can be added on top,” said Volkswagen sales chief Klaus Zellmer.

The automaker can also approach its customers for the offering of different subscription services based on data received from their driving profiles, said Volkswagen. “We make offers to customers who then come to us. For example, you have a customer with a battery-powered vehicle, and if we notice he does long journeys, we can provide him with additional range, which we can do digitally,” Zellmer said.

The subscription-based system will be part of Volkswagen’s commitment to the regular rolling out of over-the-air software updates for future electric vehicles; the automaker will be offering these updates for the ID.3 and ID.4 every 12 weeks beginning later this year, said the report.

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