Volkswagen (ETR: VOW3) is requiring owners of certain electric vehicles to pay a monthly subscription fee to access their car’s full horsepower, marking the latest example of automakers placing built-in features behind digital paywalls.
The German automaker’s ID.3 Pro and Pro S electric vehicles sold in the United Kingdom come with 201 horsepower in standard configuration, but the same motor is capable of producing 228 horsepower — a 27-horsepower boost that costs extra to unlock.
UK customers can pay £16.50 ($22.50) monthly, £165 ($225) annually, or a one-time fee of £649 ($879) for lifetime access to the additional power. The subscription also increases torque from 265 to 310 Newton-meters.
Volkswagen defended the practice by comparing it to traditional automotive lineups where engines are offered in different performance configurations. “If customers wish to have an even sportier driving experience, they now have an option to do so, within the life of the vehicle,” the company said in a statement.
The additional horsepower does not affect the vehicle’s driving range, according to Volkswagen. The cars are registered with authorities at their full 228-horsepower rating regardless of whether owners pay for the upgrade, meaning insurance rates are not affected by the subscription status.
The lifetime subscription remains with the vehicle if sold to a new owner, rather than being tied to the individual customer account.
Volkswagen joins a growing list of automakers implementing subscription models for hardware features already built into vehicles. BMW faced significant criticism in 2022 for charging monthly fees for heated seats in some markets, later discontinuing the practice. Mercedes-Benz continues to offer performance upgrades through its “Acceleration Increase” subscription service.
The trend shows the automotive industry’s shift toward software-defined vehicles, where manufacturers can remotely activate or deactivate features through over-the-air updates. This allows companies to reduce upfront vehicle costs while creating ongoing revenue streams.
Consumer advocacy groups have criticized such practices as forcing customers to pay multiple times for hardware they already own. It also raises questions about ownership rights in an era of increasing digitization of automotive systems.
Volkswagen has not announced plans to expand the horsepower subscription service beyond the UK market. The company offers other subscription services, including ambient lighting, navigation features, and voice control systems.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
I don’t personally like this concept, but the free market ought to be able to handle this. Providing the purchase agreement has all the terms and conditions, the buyer is free to purchase this car, or a different one with the lower power or the higher power. The consumer remains in control of his own decision.
A bigger issue is western governments effectively precluding the population from buying highly competitive Chiese options.