Mercedes-Benz recently introduced new pricing options for owners of its EQ electric car models as part of changes to its EV “Acceleration Increase” subscription offering. The company had initially released over-the-air performance upgrades that cost $1,200 per year and could increase power output by up to 80 horsepower. Mercedes-Benz has since changed the pricing, offering a more reasonable option.
The acceleration improvement is now available to owners of the EQE sedan and SUV, as well as the EQS sedan and SUV, for an annual cost of $600 or $900, respectively. The price has been significantly decreased from the initial $1,200 annual cost. Alternatively, owners have the choice of a $60 or $90 monthly payment plan for the EQE or EQS models or a $1,950 or $2,950 one-time lifetime upgrade fee.
Despite the fact that Mercedes-Benz announced the availability of the acceleration increase function in November, users were unable to acquire the update during that time. Further information has not yet been released by Mercedes-Benz, but it’s possible that the initial availability and pricing in November were incorrect.
The introduction of subscription fees for pre-installed features has garnered attention in the automotive industry. For instance, BMW faced criticism when it announced in-car subscriptions for amenities like heated seats. However, in the North American market, BMW decided to retain the features that were already included at the time of purchase throughout the lifespan of the vehicle, while granting owners the opportunity to experience additional functionalities through subscriptions. In the case of Mercedes-Benz, it appears that their electric vehicles possess the capability for increased power output from the factory, but the activation of these functions requires a subscription. Mercedes-Benz also reassured customers that unlocking the full power potential would not have any adverse effects on the driving range.
While in-car subscriptions are not yet widespread, they are expected to gain popularity, particularly within the realm of electric vehicles. Automakers are exploring these subscription models as a means to offset potential revenue losses associated with post-sales services for conventional internal combustion cars. However, the reception and acceptance of these pricing and ownership models among consumers remain to be seen.
We may anticipate new advances and changes in the way cars are bought and owned as the automotive industry continues to develop. Together with other revenue-generating techniques, subscription models have the potential to significantly influence how the industry develops in the future.