BMW subscription services increase in the US, no change yet for Australia

German car-maker BMW has expanded its range of controversial subscription services in the US – which unlocks certain features that have already been built into the car – but BMW Australia says, for now, there are no plans to add to its pay-to-play list.

In July 2022, BMW announced it would begin offering heated seats and in-built dash cams as an extra cost option via a monthly or annual subscription in certain overseas markets. The controversial program arrived in Australia with the local debut of the new-generation X1 SUV in late October 2022.

While BMW’s cars are already fitted at the factory – and delivered to customers – with the relevant hardware for the functions to operate, owners must pay a subscription fee to unlock the features.

As reported by Motor Authority, BMW’s US division has now added more equipment to its ‘Connected Drive’ subscription service store, ranging from convenience functions – such as remote engine starting – to potentially life-saving features, including adaptive cruise control with lane keeping assistance.

A spokesperson for BMW Australia told Drive it currently has no announcement to make regarding its local roll-out of the subscription features.

The availability and prices of the new subscription features in the US varies between models and build dates. 

A table of the prices is available below, thanks to data sourced by Motor Authority.

While BMW continues to move certain features to its subscription service platform, the car-maker has announced it will not copy Mercedes-Benz by offering power boosts for a recurring fee.

In North America, owners of the electric Mercedes-Benz EQE and EQS models can get a time-limited performance boost of 45kW and 55kW respectively – an increase of about 20 per cent – for an annual payment of $US1200 ($AU1735).

As reported by CarBuzz, BMW’s Chief Technology Officer (CTO) Frank Weber ruled out any possibility of the car-maker offering more power to customers as a subscription service, due to the legal complexity of the process.

According to CarBuzz, car-makers are required to report power specifications for every new car, which includes software-based changes. This would be a time-consuming and potentially costly exercise which Mr Weber believes BMW could do without. 

In November 2022, Top Gear Netherlands reported Mercedes-Benz was facing a legal battle in Germany after attempting to introduce the subscription power increase, with the publication claiming European laws don’t currently allow the practice.

The Top Gear report suggested Mercedes-Benz’s subscription would fall foul of the law as the car-maker is asking for a recurring annual payment to unlock the extra performance. 

For context, Polestar also offers performance upgrades for its electric cars, although it requires customers to pay a one-off fee, rather than recurring payments.

As previously reported, the subscription trend has angered car buyers, but car-makers are persevering as they try to create a new layer of profit – and ongoing revenue after their vehicles are sold to customers.