dc.description.abstract | In recent years, the automotive industry has undergone profound technological and business model transformations driven by electrification, connectivity, and the emergence of Software-Defined Vehicles (SDV). Particularly under the CASE (Connected, Autonomous, Shared & Service, Electrified) trends, the industry′s value chain has gradually shifted from a traditional product-centric sales model to a service and data-driven recurring revenue model. In response to challenges such as reduced maintenance revenue due to electrification, insufficient consumer interaction, and difficulties in meeting personalization demands, automotive function subscription services have emerged as an innovative and promising business model.
This study focuses on the Taiwanese automotive market, investigating the potential applications of subscription services in the automotive domain. Employing a qualitative research approach, in-depth interviews were conducted with industry experts to analyze the feasibility, challenges, and opportunities of subscription-based business models. The findings were further refined using the Business Model Canvas, leading to the development of a prototype tailored to the Taiwanese market. Results reveal that subscription services effectively enhance automakers’ recurring revenue streams, reduce reliance on one-time sales, and foster stronger brand loyalty through data-driven applications. Additionally, flexible feature activation and software upgrades cater to consumers’ needs for personalized and on-demand services, resolving issues such as rigid configurations and limited customization options, thereby enhancing user satisfaction.
Furthermore, the study highlights that while the Taiwanese market is limited in scale, a B2B2C model can integrate automakers, technology providers, and third-party ecosystems to reduce operational costs and expand service applications. This collaborative approach addresses the needs of both automakers and consumers, enabling continuous service optimization and the creation of long-term value. In particular, data-driven applications, including connected vehicle technologies and personalized recommendations, play a critical role in sustaining service innovation.
This research provides practical insights for designing innovative business models in Taiwan’s automotive industry and offers recommendations for future studies to further refine consumer-focused subscription strategies. | en_US |