Listen to this article in summarized format The trend marks the first reality check for carmakers betting on recurring software revenues. According to people familiar with subscription trends across manufacturers, renewal rates at some companies fall below 20% once complimentary subscriptions end, even as automakers continue investing heavily in telematics, cloud platforms and digital services. “The first phase of connected vehicles was engineering, the second phase is customer engagement, and the third phase is monetisation,” said Ravi Bhatia, president, Jato Dynamics. “The carmaker that succeeds won't necessarily be the one with the most connected features, but the one that creates digital services customers value enough to keep using throughout the ownership lifecycle.” Growing Adoption Globally, nearly 350 million connected cars are on the road. They account for about a fourth of cars in India and that number is rising. Between 2022 and 2026, features such as remote vehicle access, remote AC control and battery management, driven largely by electric vehicles, have seen rapid growth. Leading manufacturers including Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra and others offer connected platforms bundled free for periods ranging from one to four years before customers are asked to pay. While most automakers declined to disclose renewal rates, they maintained that adoption of connected technologies continues to grow. Hyundai, which has more than 832,000 connected vehicles on Indian roads, said just over one in five customers continue with paid Bluelink subscriptions after the complimentary three-year period, underscoring the broader challenge facing the industry. “Bluelink is engineered as a full-stack digital ecosystem,” said Tarun Garg, MD and CEO, Hyundai Motor India. . “Hyundai has taken this a step further with the Connected Car Navigation Cockpit (ccNC), accelerated by Nvidia, debuting in the new Venue, delivering a more intuitive and future-ready in-car digital experience.” Want a