Cars Are Just the Beginning
Subscription-based services have largely taken over the market, with companies like Netflix generating significant revenue from the model. A similar approach is now taking shape in the auto industry, with General Motors betting that subscription services like OnStar and Super Cruise could eventually generate more revenue than vehicle sales – an approach that now appears to be paying off.
Automotive News reported that General Motors sees these subscription-based services as driving “exponential growth” in its business. Through these offerings, the automaker generated $2.7 billion in realized revenue and $5.4 billion in deferred revenue in 2025, up from $1.7 billion in realized revenue and $200 million in deferred revenue in 2020.
This year, the company expects those figures to climb further to $3.1 billion in realized revenue and $7.5 billion in deferred revenue.
Kristen Brown
Turning Cars Into Smart Devices
OnStar is a subscription-based platform that provides features such as real-time navigation, remote vehicle access, and connectivity services, with higher-tier plans adding features like video streaming and in-vehicle Wi-Fi. It also includes safety features like Stolen Vehicle Assistance, making it useful not only for convenience but also for security, though the service has also faced lawsuits over data privacy concerns.
At the top of the lineup is Super Cruise, GM’s answer to systems like Ford BlueCruise. It enables advanced driver-assistance features such as hands-free driving, automatic lane changes, and hands-on steering assist under certain road and mapped-area conditions. By 2028, the automaker aims to add eyes-off driving capability to the package.
Unlike Tesla’s Full Self-Driving (Supervised), which comes with only a 30-day trial, GM includes an eight-year basic OnStar subscription with each new vehicle. Super Cruise, meanwhile, is included for three years in the purchase price. According to the automaker, these provide owners enough time to get used to the services and could improve the likelihood of renewal. Still, some may choose not to renew, especially if they do not spend much time on the highway.
The Subscription Strategy in Action
The report stated that about 13 million people are subscribed to the services, each generating roughly $20 in monthly revenue. In theory, that revenue should be reinvested into improving the system, especially if the company remains on track with its eyes-off driving and other expansion plans. If these services do become its top revenue generator, they could also help strengthen the broader business, including its vehicle lineup, while helping offset some of the losses tied to the EV transition.
“These tech services can be 70 percent gross margin,” GM CFO Paul Jacobson said. “It’s a massive difference from the core, traditional business.”
GM offers OnStar and Super Cruise in models under its four core U.S. brands: Buick, Cadillac, Chevrolet, and GMC.
