General Motors is steadily transforming its business beyond simply manufacturing and selling vehicles. As the automotive industry moves toward software-defined cars, the Detroit automaker is generating a growing share of its revenue from digital services that continue earning money long after customers leave the dealership.
During its latest quarterly earnings announcement, GM highlighted strong momentum in its subscription business, led by the continued success of OnStar and Super Cruise. The company believes recurring software revenue will play an increasingly important role in reducing its dependence on vehicle sales while improving long-term profitability.
Software Becomes a Bigger Profit Driver
Unlike traditional vehicle sales, which generate revenue only once, subscription services provide automakers with a steady stream of recurring income throughout a vehicle’s ownership cycle.
For GM, that strategy is proving highly profitable. Company executives revealed that the software business retains roughly 70 cents of every revenue dollar after costs, significantly outperforming the margins typically associated with new vehicle sales.
The growing contribution from software reflects a broader industry shift as connected vehicles become capable of receiving new features, services and upgrades through over-the-air updates rather than physical hardware replacements.
OnStar Continues Strong Subscriber Growth
One of GM’s biggest digital assets remains OnStar, its connected services platform that provides emergency assistance, navigation, vehicle connectivity and safety features.
During the second quarter, OnStar generated approximately $800 million in revenue, representing growth of more than 20% compared with the same period last year.
GM expects to add nearly one million new OnStar subscribers during 2026, pushing its total subscriber base close to 13 million customers.
To encourage adoption, OnStar Basics is now included with most 2025 and newer GM vehicles at no additional cost. The package offers safety features, navigation tools and entertainment applications for up to eight years, giving customers time to become familiar with the connected ecosystem before considering premium services.
Super Cruise Gains Momentum
GM’s advanced driver assistance technology, Super Cruise, is emerging as another major revenue contributor.
The hands-free but driver-monitored highway driving system added approximately 70,000 new subscribers during the second quarter. GM expects the service to surpass 850,000 subscribers before the end of the year.
Revenue generated by Super Cruise climbed roughly 70% year over year, highlighting increasing customer acceptance of subscription-based driver assistance technologies.
Perhaps more importantly, GM says between 30% and 40% of eligible owners continue paying for the service after their complimentary three-year subscription expires. That retention rate suggests many drivers see lasting value in the technology.
The company also announced that Super Cruise will become standard equipment on premium trims of the redesigned Chevrolet Silverado and GMC Sierra pickup trucks. GM estimates those models alone could bring around 160,000 additional users into the Super Cruise ecosystem.
EV Era Creates New Business Opportunities
The subscription strategy comes at a time when automakers are searching for new sources of revenue, particularly as electric vehicles become more common.
Unlike gasoline-powered vehicles, EVs require fewer routine maintenance visits, reducing income traditionally earned through servicing and repairs. As a result, manufacturers are increasingly looking toward digital services, connected features and software upgrades to offset those changes.
GM currently charges $19.99 per month for its Connect Plus service, which provides in-vehicle internet connectivity and additional digital features. Super Cruise is available for $39.99 per month after the complimentary three-year trial period.
Subscription Model Spreads Across the Industry
GM is far from alone in embracing recurring software revenue.
Ford offers its BlueCruise hands-free highway driving system through monthly, annual and lifetime subscription plans, while Tesla has shifted its Full Self-Driving (Supervised) system entirely to a monthly subscription model instead of a one-time purchase.
Luxury automakers including Mercedes-Benz and BMW have also expanded software-enabled features that customers can unlock after buying their vehicles.
This growing trend reflects a larger transformation across the automotive industry, where manufacturers increasingly view vehicles as platforms for delivering ongoing digital services rather than one-time purchases.
Investors Welcome the Strategy
Wall Street responded positively to GM’s latest earnings report, with the company’s shares rising nearly 9% following the announcement.
Executives believe expanding software and subscription services will help make the business less dependent on fluctuations in vehicle demand while creating higher-margin revenue streams over the long term.
As vehicles become more connected and software-driven, GM appears determined to turn digital services into a core pillar of its future business. If subscriber growth continues at its current pace, recurring software revenue could become just as important to the company’s financial performance as the vehicles it builds.
