Hyundai Motor has faced criticism for introducing subscription-based services for features like welcome lights, which were previously standard on some vehicles.
On Wednesday, the company unveiled the fully redesigned second-generation Palisade large SUV alongside a new subscription service model.
This service allows additional features to be activated through software updates while using the vehicle’s existing hardware. Key offerings include dynamic welcome lights, customizable lighting patterns, and display theme options.
One of the standout features is the dynamic welcome light, which creates unique lighting sequences as the driver approaches the vehicle. Pricing for these services ranges from $4 per month to a lifetime access fee of $150.
Hyundai’s subscription service aims to provide consumers with new experiences while exploring alternative revenue streams in the Software-Defined Vehicles (SDVs) era.
As the automotive industry transitions from a hardware-focused to a software-centric approach, Hyundai joins companies like Tesla in offering subscription-based services for advanced features.
Consumer reactions to this initiative have been mixed.
While some value the added flexibility in vehicle features, others have criticized the additional costs and high pricing for functions they feel should remain standard.
The pricing strategy has sparked particular debate, with comparisons to BMW’s similar services highlighting Hyundai’s relatively higher costs. Critics have also noted that the dynamic welcome light has limited usage conditions, identifying this as an area that needs improvement.
For Hyundai to successfully establish its subscription service, it must balance reasonable pricing with tangible value while offering enhanced features that genuinely resonate with consumers.
Although this initiative aligns with the industry’s growing focus on software-driven innovation, Hyundai’s long-term success will depend on building consumer trust and offering differentiated services.