Car Ads and Feature Subscriptions: Automakers Seek New Revenue Streams

Car manufacturers are exploring new ways to generate revenue beyond the initial sale of a vehicle, turning to in-car advertising and subscription services for features like heated seats.

This trend is fueled by a changing automotive market where profits from car sales and parts have diminished. Increased competition, especially from Chinese electric vehicle makers like BYD, has put pressure on traditional European brands. "Manufacturers are looking for new revenue streams," notes VRT NWS traffic expert Hajo Beeckman.

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Manufacturers are looking for new revenue streams.

Volkswagen, for instance, is exploring personalized advertising based on location, while BMW has already shown promotional content on its screens. These practices, more common in the US and China, are now being experimented with in Europe. However, experts like Gert Verhoeven of VAB caution that in-car advertising can be a significant distraction for drivers.

Furthermore, the move towards subscription models for features that were once standard raises concerns about the long-term affordability and accessibility of automotive technology. As European manufacturers face higher production costs and a need to invest heavily in electric vehicle development to meet 2035 regulations, they are seeking to recoup costs through these new revenue streams, potentially altering the ownership experience for consumers.

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