Thursday, July 23, 2026
Only a few years ago, automotive subscriptions were best known for an idea many drivers hated: paying a recurring fee to use heated seats already installed in their cars.
BMW ended the heated-seat subscription experiment it had introduced in some markets after customers pushed back. The company acknowledged that drivers felt they were being asked to pay twice for the same hardware.
New results from General Motors and Tesla suggest automakers may be finding a model customers are more willing to accept. This time, they’re building subscriptions around connected services and driver-assistance software that can improve after the vehicle is sold.
General Motors
GM’s OnStar digital business, which includes Super Cruise, generated approximately $800 million in recognized revenue during the second quarter of 2026. That was 20% more than a year earlier.
OnStar provides connected safety and navigation services, along with internet access. Super Cruise is GM’s hands-free driver-assistance system. Drivers must still watch the road.
Business Insider reported that GM added approximately 70,000 Super Cruise subscriptions during the quarter. Revenue from the service increased about 70% from a year earlier. GM expects to finish 2026 with more than 850,000 Super Cruise subscribers.
GM’s subscriber totals include some customers whose service is included in the vehicle price. The company hasn’t disclosed how many are currently making separate recurring payments.
Between 30% and 40% of eligible customers continue paying for Super Cruise after the three-year period included with their vehicle ends, according to GM.
The company is also expanding its pool of potential subscribers. Super Cruise will be standard on higher-end versions of its next-generation Chevrolet Silverado and GMC Sierra pickups and available on most other trims.
GM estimates that this strategy will put Super Cruise in another 160,000 vehicles. That doesn’t make them paid subscriptions. It gives GM a larger group of customers to convert when their included service periods end.
Tesla
Tesla is taking a more direct route to recurring revenue.
The company stopped selling its Full Self-Driving software as an $8,000 one-time purchase in February. New customers now pay $99 a month for Full Self-Driving (Supervised).
Despite its name, the service doesn’t make a Tesla autonomous. Drivers must remain attentive and ready to take control.
Tesla reported 1.48 million active FSD subscriptions during the second quarter, up 56% from a year earlier. Tesla’s measure includes monthly subscribers and customers who previously purchased access upfront. It doesn’t include free trials.
The company recorded its highest quarterly net subscription additions. Tesla also said more than 55% of new North American deliveries included an FSD subscription.
Tesla Chief Executive Officer Elon Musk said some customers were coming into stores because they wanted Full Self-Driving “and with whatever car it comes with, essentially.."
Ford
Ford is trying a third approach. It’s letting customers choose between recurring payments and a one-time purchase.
BlueCruise is Ford’s hands-free highway driver-assistance service. Like Super Cruise and FSD, it requires drivers to remain attentive and prepared to take control.
Customers with eligible vehicles can begin with a three-month trial. After that, BlueCruise costs $49.99 a month or $495 a year. Customers buying an eligible vehicle can instead make a one-time payment of $2,495.
That option is available only when the vehicle is purchased. BlueCruise plans are tied to the vehicle and can’t be transferred to another one.
Ford’s structure gives customers more control over how they pay. Frequent users can purchase the service upfront, while others can subscribe annually or activate it for shorter periods. Unlike Tesla, Ford still gives customers the option to purchase the service upfront.
Insider Take
Automakers may be learning an important subscription lesson. Customers are more likely to accept recurring charges when they receive continuing service and improvement. They’re far less receptive when a company asks them to keep paying to use hardware they believe they already bought.
GM and Tesla are showing genuine traction, but neither has proven the long-term model.
GM still needs to convert more drivers after its included service periods end. Tesla’s reported total includes customers who purchased access upfront, so it doesn’t represent 1.48 million monthly subscribers. Ford is preserving customer choice, but it hasn’t released comparable BlueCruise conversion or retention figures.
Automakers have a significant distribution advantage. The software is already inside the vehicle, giving customers an easy way to experience the service.
The harder test comes later. Drivers must find enough continuing value to keep paying after free or included access ends.
Sources
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Subscription Insider helps executives make better decisions across the business of subscriptions. Decisions involving growth, pricing, retention, billing, compliance, and customer experience are connected, but they rarely sit within one department. Since 2009, Subscription Insider has combined independent reporting and analysis, real operating experience, and practical guidance to help leaders see what’s changing, understand what it means for their businesses, and decide what to do next. Subscription Insider serves executives leading subscription, membership, and recurring revenue businesses. Learn more at SubscriptionInsider.com.