Subscription services to be the norm by the end of the decade?

The local distributor for Skoda expects subscription services to become commonplace for new cars sold in New Zealand by the 2030s, but they aren’t necessarily in favour of the connected technology.

Speaking at the local launch of the new Elroq and Enyaq, Matthew Markby, National Product Manager for Skoda New Zealand outlined some of the struggles the team faced while configuring new Skodas for the local market. 

Features like over-the-air (OTA) updates and traffic-sign recognition are missing from New Zealand models of the 2026 Elroq and Enyaq because, in overseas markets, these features are bundled into paid subscription services that owners have to sign up for.  

“Subscription services for all brands I think will be coming towards 2030,” said Markby.

“It is available in Europe now, through Skoda Functions on Demand (FOD). The main reason we’re not getting the additional stuff (features like OTA updates) is associated with the connectivity conversations. Until we can start depackaging some of the connectivity elements, it restricts what we can do offline.

“The infrastructure here in New Zealand isn’t quite ready for connectivity. We’re getting there, we’re working through it.

“Most of it isn’t necessarily things like over the air updates. It has more to do with privacy data. This is not about rushing a car to market without doing the correct compliance protocols. For us as a group, we want to make sure we’re doing it right.”  

In some large European markets, paid subscription services are now required to access or unlock some of the features hardwired or preinstalled into the car. Brands like Skoda, BMW, Mercedes-Benz and Porsche currently offer subscriptions for features like real-time traffic data, voice control or in-built features like heated seats.

Locally, BMW already offers Connected Drive, a paid service that unlocks features like driver assistance, parking assistant or adaptive M suspension.

“I don’t know how that will quite work because you’re going to have to bundle features in the car in the first place,” said Markby. “So the hardware has to be there which comes with an associated cost.”

“We are a price sensitive market. The cost of these vehicles here in New Zealand is far more accessible than they are in Europe. And with that, I'd probably want to hold off.

“In terms of my own personal values I don’t know if I quite like the notion, i’d rather just provide the feature when the person purchases the car.”

Tesla is the latest manufacturer to introduce a subscription service model in New Zealand. Last week, the US automaker announced Full-Self Driving would move to a subscription-only service by April 2026.