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GM said its in-vehicle technology services generated nearly $2 billion in revenue last year.
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GM sells three main subscription products: safety features, in-car internet access and hands-free driver assistance.
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GM told Business Insider it plans to add features through updates over time, reducing the need for new vehicle parts.
GM has been courting Tim Cook and pushing its software and subscription businesses.
During the automaker’s earnings call on Tuesday, Chief Executive Mary Barra highlighted the rapid growth of GM’s in-car software and subscription businesses.
GM’s software generated $2 billion in revenue over the past nine months, and customers have signed about $5 billion in future subscription deals.
The company said its OnStar security system currently has 11 million users, a 34% increase from the same period last year. A further 500,000 customers are also paying for its hands-free driver assistance system Super Cruise.
Now, that’s still just a fraction of its total revenue, which reached $45.29 billion last quarter alone. But these services also have higher profit margins than car sales.
GM says its software business earns about 70 cents for every dollar it makes. That’s a rare level of profitability in the auto industry, where many car sales generate only 4 to 10 cents per dollar sold.
“We are also executing on plans to grow software and services like OnStar and Super Cruise to generate greater revenue during and after each vehicle sale,” Barra said on the call. “We think there’s a growth opportunity there and the margins are very attractive.”
“Software and services are becoming increasingly important to how customers experience General Motors and how we provide value beyond the initial purchase,” a spokesperson told Business Insider.
The company also said it will continue to add features and services to the vehicles over time, rather than relying on hardware upgrades.
The spokesperson added: “As vehicles become more software-defined, we can introduce new digital experiences through updates and optional services rather than hardware changes.”
The subscription push comes as automakers look for new ways to make money after cars leave dealerships, especially as Detroit automakers roll out new electric vehicles.
Electric vehicles typically require less maintenance than gasoline-powered vehicles, reducing the repair and service work that has long been a reliable profit engine for dealers and manufacturers.
General Motors has tweaked its subscription model to make it easier for customers. OnStar Basics is included on 2025 and newer GM vehicles at no additional cost and bundles safety features, navigation and audio apps for up to eight years.
