Volkswagen Partakes in the Car-on-Demand Trend, Introducing the ID.3 BEV for Shared Use
In the ever-evolving world of automotive technology, a new trend is gaining traction - Car-As-A-Service (CAAS) subscriptions. Major manufacturers are embracing recurring revenue models, enabling customers to subscribe to specific vehicle features rather than outright purchasing them.
One of the pioneers in this shift is Volkswagen, offering a subscription for its ID.3 BEV in the UK and other countries. This service allows customers to unlock a motor power upgrade, increasing the car's output from 150 kW to 170 kW (approximately 27 additional horsepower). The fee for this upgrade can be paid monthly at £16.50, annually at £165, or as a one-time 'lifetime' payment of £649.
Similarly, BMW and Mercedes have implemented feature subscriptions. BMW customers can pay a recurring fee to activate factory-installed heated seats, while Mercedes has experimented with an acceleration upgrade, offering performance enhancements on a subscription basis.
The CAAS model is causing a stir, with customers paying ongoing fees for features that are physically present in their vehicles from purchase. This raises concerns, as some people find it troubling that they are paying for hardware they already own.
The CAAS model is not just a trend among a few manufacturers. BMW's heated seats subscription and Mercedes' acceleration subscription are examples of this concept becoming increasingly prevalent. However, it remains unclear whether other car manufacturers are adopting this model.
From a car tuning perspective, the CAAS model seems to suggest that third-party tuners may not be needed. This shift towards software-enabled upgrades could potentially open up new opportunities for manufacturers while presenting challenges around customer perceptions.
The motor power upgrade for the Volkswagen ID.3 BEV has been available for some time, with it being offered first in Denmark. The upgrade has since been rolled out in other countries as well. Some users have reported noticeable changes after upgrading the motor power of their Volkswagen ID.3 BEV.
As the automotive industry continues to evolve, the CAAS model is set to play a significant role, offering manufacturers recurring revenue opportunities while presenting new challenges and opportunities for customers.
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