Audi is Ramping Up its On-Demand Subscription Program Next Year—Not a Cash Grab?

Prominent car maker Audi is currently experimenting with subscription-based features. The new services are set to arrive by 2024, according to the German company.

While we have seen many experiments in the auto industry, some people are skeptical about the changes. Audi sees this as a challenge to grow its "on-demand" program to retain and attract more customers in the long run.

Audi is Testing the Subscription Waters

A parade of criticism rained over another car company BMW, when it started to charge the customers with a monthly subscription charge. This feature allows them to access the heated seats in their cars.

Fortunately for Audi, this is a learning opportunity to improve their services. The company is poised to take the concept to the next level after seeing the flaws of the subscription-based service.

In an interview with Autocar, Audi's Head of Technical Development, Oliver Hoffmann, has announced the brand's ambitious plans for the near future.

While Audi currently offers a limited selection of subscription features, a broader horizon awaits. With the firm's next generation of electronic architecture, it aims to introduce a growing array of "function on demand" offerings.

What's on the Subscription Menu?

As Audi dives into the subscription model, the specific features available for subscription remain under wraps. Hoffmann refrains from revealing the exact features that will be part of the subscription offerings or the details of payment plans. However, the possibilities are vast, and Audi's innovative approach could open the door to a range of features that cater to individual preferences.

"This is a [big] step. I think there is a demand from the customer to bring new functions in the car, and this is a profit pool for us - but we don't see these revenue pools with this kind of functionality," Hoffman said.

Subscription Terms and Pricing

Currently, Audi owners can subscribe to features like the Matrix LED package, per Carscoops. This feature intelligently adjusts high beams to avoid dazzling oncoming drivers. The subscriptions are available for durations of one month, six months, one year, three years, or a lifetime. Each option comes at a progressively higher cost, with a lifetime subscription requiring an investment of €2,325 (approximately $2,490 USD).

Listening to Customer Demands

Hoffmann emphasizes that Audi's decision to embrace on-demand functions is driven by customer demand rather than a simple pursuit of additional revenue. It's a customer-centric approach aimed at enhancing the ownership experience and tailoring it to individual needs.

The Future of On-Demand Features

Audi's vision for on-demand features extends beyond monetary considerations. The approach allows customers to maximize the utility of their vehicles over their lifetime.

More importantly, it eliminates the need for frequent visits to dealerships. Instead, customers can conveniently activate new features using a dedicated app when the need arises. Hoffmann envisions these interactions becoming a norm in the automotive landscape.

While Audi's enthusiasm for the subscription model is evident, the idea of paying extra for on-demand features has met with mixed reactions.

As the auto industry takes bold steps into uncharted territory, it remains to be seen whether enthusiasts and customers at large will embrace this novel approach.

Audi's forward-thinking initiatives could set a new precedent in the industry. However, the success of the subscription model will ultimately hinge on factors such as the variety of features offered, pricing strategies, and, most importantly, the response of discerning customers.