Specifically, the ID.3 Pro and Pro S electric vehicles have their power capped at 201 horsepower. However, these vehicles can actually reach 228 horsepower. To unlock this extra power, customers must pay a monthly subscription fee of GBP 16.5 (USD 22.5), an annual fee of GBP 165 (USD 225), or a lifetime access fee of GBP 649 (USD 879). The upgrade also increases the torque from 265 Nm to 310 Nm.

Volkswagen explains that this paid power upgrade is similar to customers choosing a higher-spec version at the time of purchase. The company also states that the vehicle's range is unaffected by the upgrade. Notably, the vehicle's specifications registered with authorities are 228 horsepower regardless of whether the power upgrade has been purchased, so insurance costs remain the same. With the lifetime package, access is tied to the vehicle and transfers to the new owner upon resale.

The all-electric Volkswagen ID.3. Photo: Volkswagen

The all-electric Volkswagen ID.3. Photo: Volkswagen

Volkswagen is not the first automaker to adopt this model. Mercedes previously introduced its "Acceleration Increase" service for software-based performance enhancements, while BMW faced criticism for charging a subscription fee for heated seats.

This trend of "software-based vehicle upgrades" is believed to allow manufacturers to reduce initial sale prices while generating a long-term, stable revenue stream through subscription features. However, many argue that customers are effectively paying multiple times for hardware already present in the vehicle. This also raises questions about ownership in an era where car systems are increasingly reliant on software.

Currently, Volkswagen has only rolled out this service in the UK market and has not announced plans for expansion to other countries. In addition to the power upgrade, Volkswagen offers other monthly subscription services such as ambient lighting, advanced navigation, and voice control.

Ho Tan (adapted from The Deep Dive)