GM's OnStar Subscription Revenue Surges, Targets Over 13 Million Users by 2026

General Motors' digital subscription service, OnStar, is now available in 20 markets and generated $750 million in profit in the first quarter of 2024, an increase of over 20% year-over-year. The company expects its full-year revenue from digital subscription services to reach $3.1 billion in 2024, up 15% from the previous year. GM plans to add more than one million OnStar subscribers by 2026, bringing its total subscriber base to over 13 million. CFO Paul Jacobson stated that digital services have become a critical component of the company’s future business and emphasized ongoing efforts to reduce costs to accelerate the adoption of driver-assistance technologies in lower-end markets. Additionally, GM plans to launch its next-generation “SDV 2.0” platform by 2028 to further enhance autonomous driving capabilities. Data shows strong consumer acceptance of monthly payment models for vehicle features, with no signs of significant subscription fatigue. Meanwhile, Ford Motor Company reported a 6.4% year-over-year increase in total revenue for Q1 2024, with net income of $2.5 billion, reflecting the broader automotive industry trend toward transforming into a full-lifecycle service model—encompassing stronger supply chain integration, automotive finance, and after-sales services.