According to Business Insider, General Motors (GM) is undergoing a transformation from a conventional automaker to a subscription-based services provider. Its software and services segment has proven to be significantly more profitable than traditional vehicle sales. For every dollar in revenue generated by GM’s software and services business, approximately 70 cents is retained as profit. In contrast, profit margins for car sales typically range from just 4 to 10 cents per dollar—a stark difference in profitability.
GM’s flagship subscription service, OnStar, generated $800 million in revenue during the second quarter. The company expects the number of subscription users to reach nearly 13 million by the end of 2026. Meanwhile, the Super Cruise autonomous driving assistance system—priced at $39.99 per month—added 70,000 new users in the second quarter, with revenue surging 70% year-on-year. By the end of the year, subscription users for this service are projected to exceed 850,000.
GM’s deferred revenue from subscription services is expected to reach $5.4 billion in 2025. Looking ahead to 2026, the company anticipates actual revenue of $3.1 billion and deferred revenue of $7.5 billion. Additionally, GM performed strongly in the North American market, delivering 747,000 vehicles in the second quarter and increasing its market share to 17.4%. In China, the company maintained profitability for seven consecutive quarters, with new energy vehicle sales surging 50% year-on-year.