BMW Heated Seats Subscription Was Scrapped — Will Other Companies Follow Suit?

Automakers are always looking for ways to squeeze more money out of customers, but BMW’s attempt to charge a subscription for heated seats didn’t sit well with anyone. The idea of paying extra for something that it already built into the car felt like a cash grab — because it was. After pushback from consumers, the company finally scrapped the monthly fee.

Yet, BMW isn’t the only one that’s experimenting with paywalled features. Other automakers have rolled out similar subscription models, hoping customers will shell out extra for conveniences like remote start or improved acceleration. With BMW backing off, the big question is — will other companies follow suit, or are in-car subscriptions here to stay?

The Rise and Fall of BMW’s Heated Seats Subscription

BMW’s attempt to charge drivers a heated seats subscription seemed like a bold step into the future of in-car subscriptions. When introduced in 2020, the feature gave way to flexibility for customers, allowing them to activate certain built-in functions only when they needed them. However, instead of seeing it as an added convenience, consumers widely criticized it as a greedy move to monetize a physical feature of their vehicle.

Unlike software-driven upgrades, heated seats require no ongoing costs for BMW to maintain. The subscription felt like an artificial paywall, where customers accused the car company of nickel-and-diming them for something that should be a standard feature.

After the swift backlash, BMW reversed course, confirming that it would no longer charge for hardware-based features. Instead, the company is shifting its focus toward software-driven services to offer additional services, such as driving assistance and parking technology.

A move like this signals a potential turning point in the automotive industry’s approach to subscriptions. While software-based services may still be the future, automakers may have to rethink how they package and justify these offerings.

The Subscription Model in the Auto Industry

Automakers see an upside to subscription-based features because they offer a steady stream of recurring revenue long after they sell a vehicle. Instead of relying on one-time sales, manufacturers can generate continuous profits while maintaining long-term relationships with customers. This model also allows companies to simplify production by building cars to a uniform standard and letting drivers unlock extra features a la carte rather than manufacturing different trim levels.

Over-the-air software updates have made this model even more viable. As cars become more connected, these updates allow automakers to add capabilities remotely. As such, it creates new opportunities to charge for features post-purchase. 

For example, Tesla offers a Full Self-Driving package as a $99 monthly subscription, giving drivers access to advanced driver-assistance features. Mercedes-Benz also introduced a subscription that increases acceleration by 60 to 80 horsepower in certain electric models. Meanwhile, Mazda customers must pay a $10 monthly subscription if they want to keep access to features like remote start.

Despite these advantages for manufacturers, the model has faced significant resistance from consumers. Around 90% of drivers expect features tied to physical hardware — such as heated and cooling seats or remote start — to be part of the upfront cost of a vehicle. While subscription models may be a more flexible way to add on new features without upgrading to new models, car dealers must determine a way to implement them without alienating potential buyers.

Will Other Automakers Follow BMW’s Lead?

BMW’s decision to get rid of its heated seats subscription may seem like a win for consumers, but it doesn’t mean the auto industry will abandon the subscription model altogether. Some automakers are still finding ways to make it work but with a different approach.

Companies like Ford, Cadillac and Mercedes-Benz have already removed certain vehicle subscription services after customer pushback. Yet, instead of completely walking away, manufacturers are looking at how software-driven updates could justify ongoing fees. 

For example, Tesla offers a battery range fee where customers can pay to access the full capacity, which the company delivers via over-the-air updates. The idea is that by making vehicles more modular and upgradeable post-purchase, consumers may be more willing to pay for enhancements over time.

The challenge that automakers face is finding the right balance. Customers have made it clear that they don’t want to pay for basic features that should be standard. Simultaneously, this model comes at a controversial time for Tesla, as three car owners recently filed a class action lawsuit for losing mile ranges in the Model Y Tesla. If car companies promise a specific mile range, they must be certain their subscription add-ons can deliver. 

Overall, approximately 25% of car buyers did say they would be open to subscriptions for advanced software functionality, such as enhanced driver assistance or performance boosts. As BMW pivots toward this software-first strategy, it could encourage other companies to refine their subscription models with more of these features.

What This Means for the Future of In-Car Technology

The automotive industry’s subscription-based services will grow from $9.2 billion in 2024 to $791 billion by 2032. This growth suggests a major shift toward software-defined vehicles (SDVs), where software will increasingly govern features and functionalities. This shift enables manufacturers to offer over-the-air updates, allowing drivers to access new features without the need for physical modifications.

While the implementation of subscription models has come with mixed reactions, some consumers appreciate the flexibility to customize their driving experience. At the same time, others express concern over potential subscription fatigue from recurring fees for features that vehicles previously had in their purchase price.

Therefore, consumer feedback and acceptance of these models are likely to influence in-car technology. Since the automotive industry is offering more connected vehicles than ever, companies will need to determine where they draw the line in adding features and additional costs to access them.

Software-based subscriptions may be here to stay, but manufacturers are still trying to understand what sticks. At this time, these extra fees are likely to become more successful if automakers were to decrease the asking price for the vehicle itself. Lowering the purchase price will make subscriptions more feasible, opening new ways for SDVs to enhance the driving experience through subscription-based software updates.

Another alternative would be to let customers pay for the car’s features outright. Many companies are already starting to offer this model. Tesla’s Full Self-Driving feature enables customers to pay it off for $8,000. Allowing these options would give car buyers the freedom to choose what works best for them, whether paying more upfront or monthly. This would increase flexibility, as they’d get to choose which add-ons they need most. 

A Crossroads for Automakers With In-Car Subscriptions

BMW’s decision to abandon its heated seats subscription is a clear indication that consumers are unwilling to pay for features that feel like an unnecessary upcharge. While the backlash may have caused some automakers to rethink their strategies, the subscription model isn’t disappearing entirely. Instead, manufacturers will pivot toward software-driven enhancements, offering updates that add real value. Therefore, the future of in-car subscriptions lies in finding the right balance in upgradeable software features.