In an ever-evolving automotive landscape, automakers are continuously seeking innovative ways to boost profitability and cater to changing customer preferences. One emerging trend is the adoption of on-demand features and subscriptions, offering drivers newfound flexibility in enhancing their vehicles. Audi, renowned for its technological advancements, is taking a unique stance in this arena. The automaker is set to expand its range of on-demand features, not solely as a revenue generator but as a response to customer demand.
Customer-Driven Expansion of On-Demand Features
Currently, Audi’s on-demand features are accessible exclusively for the E-Tron and E-Tron Sportback models. However, the company is committed to extending these offerings to a broader spectrum of models in the near future. This transition empowers vehicle owners to elevate their driving experience by incorporating additional functions and features after the initial purchase, providing an ad hoc approach to customization.
The existing suite of on-demand features from Audi includes an LED Matrix package that seamlessly switches between dipped and main beam, a light function package with captivating light animations during vehicle locking and unlocking, and a semi-autonomous parking function capable of autonomously locating parking spaces.
Audi’s Technical boss, Oliver Hoffmann, envisions a future where “function on demand” becomes a prevalent practice, reflecting a shift in the industry’s business model. While the idea of generating more revenue from digitalization functions than car sales was once a novel concept, it is now rapidly becoming a reality.
Seamless Integration via the myAudi App
Audi’s approach to on-demand features stands out due to its simplicity and ease of integration. Drivers can effortlessly enhance their vehicle’s functionality through the myAudi app, eliminating the need for dealership visits or additional hardware installations. This customer-centric approach ensures a hassle-free experience and aligns with Audi’s commitment to delivering cutting-edge technology while preserving user convenience.
This initiative comes in the wake of BMW’s decision to eliminate extra fees for hardware-based functions, citing low customer acceptance. Nevertheless, Hoffmann maintains a positive outlook on the growing prominence of on-demand functionality, viewing it as the future of automotive customization.
Customer Receptiveness to On-Demand Features
The automotive industry is witnessing the transformation of customer preferences and demands. While some automakers initially faced backlash when introducing subscription-based products and services, recent research suggests a growing receptiveness among consumers. An S&P Global Mobility survey revealed that 82 percent of respondents are open to considering subscription-based services for their future vehicle purchases when offered free trials or existing subscriptions.
In this dynamic landscape, Porsche, another member of the Volkswagen Auto Group (VAG), has also embraced technology integration. The brand recently announced plans to integrate Google services into its forthcoming vehicle generations, encompassing Google Maps, Google Assistant, and access to an array of apps through the Google Play Store.
As the automotive industry continues to evolve, Audi’s forward-looking approach to on-demand features exemplifies its commitment to enhancing the driving experience and meeting customer demands in a tech-driven era.
