Audi will increase the scope of features available ‘on demand’ in its next-generation cars, including the A4, allowing owners to add functions and features after purchase and on an ad hoc basis.
Technical boss Oliver Hoffmann told Autocar: “With our next generation of electronic architecture, we will bring more offers to ‘function on demand’ and you will see year by year we will bring new functions in the cars.”
This is in response to customer demand, he said, rather than a ploy to generate significantly higher profit margins. “A few years ago, there were ideas to generate more revenue on digitalisation functions than by selling cars,” he said.
At the moment, Audi's on-demand functionality is only available for its e-tron and e-tron Sportback models, although on-demand upgrades will be available with more models in the future.
Features are limited to an LED Matrix package that automatically switches between dipped and main beam, a light function package that allows for light animations when locking and unlocking a car and a semi-autonomous parking function that can find a parking space and park by itself.
On demand features allow drivers to add functionality themselves, in this case, via the myAudi app. There's no need to visit a dealer or add any additional hardware.
Audi remains tight-lipped about which features will be available in the future. Hoffman added: “This is a [big] step. I think there is a demand from the customer to bring new functions in the car, and this is a profit pool for us – but we don’t see these revenue pools with this kind of functionality.”
Hoffmann was speaking after BMW said it would stop charging extra to activate hardware-based functions on its cars, following low “customer acceptance”. Despite this, Hoffmann is confident that function on demand will be “quite normal in the future”.
Join the debate
Add your comment
This is in response to customer demand, he ( Audi Tech boss ) said, rather than a ploy to generate significantly higher profit margins.
Did anyone ask him to prove it? I can't think of any reason whatsoever why I'd or anyone else would want a subscription service.
The obvious response to that would to make cars cheaper - what if I don't want Sat Nav but I'm currently paying for it? What if I don't want the self-parking feature but I'm currently paying for it?
But even if we chose not to pay for these optional services, isn't this subscription going to make our cars MORE expensive? For these systems to work we need the hardware installed at the factory. Example - we currently pay around £400 extra to have the self parking feature. But in future, all cars will require the self-parking hardware installed even if you don't subscribe to it.
Someone needs to hold these people responsible. I get the impression motoring publications act like guppy fish at feeding time - they report what someone said and that's that. It'd be interesting if someone were to quiz these people. What customer demand? Who conducted the survey? How was the survey conducted? How many cutomers were asked? How many said they wanted such services? I'd have thought the answer would be Mr Hoffmann asked his wife, his wife's sister, his brother-in-law, his Audi salesmen, his bosses etc.
Completely agree Scotty. However Autocar would never challenge a manufacturer that pays their advertising, so Autocar will just publish the Audi BS without ever asking for evidence! Most of this site is just manufacturer press releases
These are simple services I'd expect to be included but they are not! I did pay for the navigation service but it doesn't update the roads. I have to pay extra for that! What am I paying for in a service that doesn't update the very basis upon which it is predicated?
I'm going to experiment with NOT renewing to see what services actually stop working. And as that nicely coincides with Audi's announcement on more useless subscriptions in the future, maybe they'll get the message, like BMW, that this is not a payment model we like.
These are simple services I'd expect to be included but they are not! I did pay for the navigation service but it doesn't update the roads. I have to pay extra for that! What am I paying for in a service that doesn't update the very basis upon which it is predicated?
I'm going to experiment with NOT renewing to see what services actually stop working. And as that nicely coincides with Audi's announcement on more useless subscriptions in the future, maybe they'll get the message, like BMW, that this is not a payment model we like.
Dear German marketing people......if these paid services don't add real value or convenience for customers they are nothing more than a shameless upsell. If you really want to make more profit, margin and have a loyal customers base pls put your heads together and come up with 'useful innovations' - we will happily pay for that....