by BMW is once again returning to the idea of paid subscriptions for car features, despite previous negative experience. Here are the key points to know about the new electric crossover iX3:
Return to the Subscription Model
In 2022, BMW faced a wave of outrage after proposing a subscription for heated seats and was forced to withdraw the offer. However, the company did not abandon the concept itself. The new electric crossover iX3 demonstrates this approach: features such as the 360-degree camera and the Driving Assistant Pro package for hands-free highway driving will be available for a monthly fee. This is similar to Tesla’s strategy.
Interestingly, the hardware for these systems is already installed in every new iX3. Furthermore, depending on the market, real-time traffic updates and adaptive suspension may be offered via subscription. For example, in Australia, adaptive suspension can be activated after purchase for 29 Australian dollars per month, with one free trial month.
Explanation of BMW’s Position
Company representatives explain this approach. Alexandra Landers, Head of Product Communications at BMW, stated:
The criticism we received was specifically about heated seats, so that was probably not the best way to start. However, we decided that all the technology should be on board, but for additional systems we also have operational costs. You use the cloud, and that costs money. If you use it, we have to pay for it.
She also added that subscriptions can be convenient for owners who might change their mind about a certain feature during ownership, for example, in traffic jams, and then easily add it online.
Updates and Service Geography
BMW plans to link over-the-air software updates with its subscriptions. For example, improvements to ADAS systems will be delivered specifically to paying subscribers. However, some features, such as semi-autonomous driving, will initially be available in Germany, and only later in other markets.
What Will Remain Free?
The company emphasizes that certain things will not be locked behind a paid subscription. Customers will not be able to unlock additional power or battery range via remote updates. BMW believes that base cars should offer full performance from the start.
We are not tuners. You feel these 345 kilowatts (463 hp), so to even limit them and then ask [customers] to pay [more]? That didn’t make sense for our offering strategy.
Buyer Reaction and the Future
It is not yet clear how customers will perceive the subscription model for new BMW models, especially the iX3. While placing semi-autonomous systems behind a paywall, as Tesla does, is no longer new, requiring a subscription for such a basic thing as a surround-view camera will likely cause controversy.
This situation shows how car manufacturers are seeking new sources of post-sale revenue in the electric era, turning one-time feature purchases into ongoing customer relationships. The success of this strategy will depend on how willing buyers are to accept the idea that they are buying not just a physical car, but also access to its software capabilities, which can change over time. Much will depend on the perception of fairness and transparency of such offers, especially when the hardware is already installed in the car.
