Volvo will collaborate with Qualcomm to introduce subscription-based features in the electric EX90 SUV and upcoming models. Martin Kristensson, Head of Product Definition and Partner Management at Volvo, stated in an interview with Auto News Europe that the company is seeking to find new revenue streams through software as cars have a longer lifespan.
“We will see cars that need to last longer and more of the value is driven by software, so we will need to find new business,” Kristensson said at CES 2023. “Certainly, there is an opportunity for subscriptions for some of features in the vehicle.”
Kristensson mentioned that the EX90 is the first vehicle from Volvo that can have new features added over time, and some of these features can be turned into revenue-generating opportunities such as audio content, digital services, and navigation content.
“What we can monetize are things that go above and beyond — both car-centric functions like automatic parking and also digital services,” he said. “Autonomy is time-saving, and time is the most precious resource. If I can save half a day more, that is probably very valuable for you,” noting that the carmaker could charge for hands-free driving systems.
At the CES 2023 event, Mark Granger, Head of Qualcomm’s Digital Cockpit Automotive Product, noted that the automotive industry is reaching the same inflection point as smartphones did when they were able to be updated with new software and apps regularly. The EX90 SUV is powered by Qualcomm’s Snapdragon SA8155 chip which runs on Android Operating System.