GM Builds a $3 Billion OnStar Business as Vehicle Subscriptions Gain Scale

OnStar generated approximately $800 million in quarterly revenue as GM expanded connected services and accumulated $6.3 billion in deferred revenue.

General Motors expects OnStar to generate more than $3 billion in revenue this year. GM is turning the vehicle sale into a distribution channel for recurring connected services.

OnStar generated approximately $800 million in recognized revenue during the second quarter, up approximately 20% year over year. GM expects to add approximately 1 million OnStar subscribers in 2026, bringing the total close to 13 million by year-end.

Super Cruise, GM’s hands-free driver-assistance service, added approximately 70,000 subscribers during the quarter. Revenue increased approximately 70% year over year.

GM expects Super Cruise to exceed 850,000 paid subscribers by the end of 2026. That number needs context. Many of those customers receive a three-year prepaid subscription when they purchase an eligible vehicle. They haven’t necessarily chosen to pay a separate monthly fee.

GM Uses Vehicle Sales to Distribute Subscriptions

GM introduces OnStar and Super Cruise when customers purchase a vehicle. Customers don’t have to discover the service on their own or sign up before experiencing it.

Model-year 2025 and newer GM vehicles come standard with eight years of OnStar connectivity. Available features vary by vehicle and plan.

Super Cruise generally comes with a three-year prepaid subscription on newly equipped vehicles. After that period, customers need an eligible paid OnStar plan to continue using the service. A standalone Super Cruise plan currently costs $39.99 per month in the United States.

GM reported a 30% to 40% attach rate after the three-year prepaid period. In plain English, roughly three to four out of every 10 eligible customers move to a qualifying paid plan.

The prepaid period gives drivers time to make Super Cruise part of their routines. The harder test comes when they must decide whether the service is worth another purchase.

GM’s Subscriber Counts Need Context

GM reported 12 million global OnStar subscribers at the end of 2025 and expects that total to approach 13 million this year.

That doesn’t mean 13 million customers are paying GM a separate monthly subscription fee. The total includes customers receiving connected services with their vehicles.

GM describes its projected Super Cruise customers as paid subscribers. That total includes customers whose three-year prepaid subscription came with the vehicle and customers who later purchase an eligible OnStar plan.

The subscriber totals show the reach of GM’s connected services. The post-prepaid attach rate offers a better indication of how many eligible customers make a separate purchase after that initial period ends.

Deferred OnStar Revenue Reaches $6.3 Billion

GM reported approximately $6.3 billion in deferred OnStar revenue at the end of the second quarter, up nearly 50% year over year.

Deferred revenue represents amounts allocated to connected services that GM will recognize as it provides those services. The balance is tied to transactions that have already occurred, but GM will recognize the revenue as it provides the services.

The $6.3 billion is not additional second-quarter revenue and should not be added to the approximately $800 million recognized during the quarter.

GM reported more than $5.4 billion in deferred revenue from OnStar services, including Super Cruise, at the end of 2025.

GM Expands Super Cruise Distribution

GM reported its strongest quarter and first half for sales of new vehicles equipped with Super Cruise.

The service will also become standard on premium versions of GM’s redesigned Chevrolet Silverado and GMC Sierra pickups. GM said on its earnings call that the move could introduce Super Cruise to approximately 160,000 additional customers.

Each equipped vehicle creates another prepaid subscription and, eventually, another purchase decision. Whether drivers keep the service will depend on how much they use it and whether they believe it is worth the price.

Insider Take

GM’s advantage is distribution. Its challenge is proving that use during a prepaid period leads to a separate purchase later.

The company can put OnStar and Super Cruise in front of customers through the vehicle sale. That gives GM enormous reach without acquiring each subscriber separately.

GM also earns revenue during the prepaid period, which makes this different from a free trial. Still, the 30% to 40% post-prepaid attach rate shows that most eligible customers don’t move to a qualifying paid plan when the initial period ends.

That is the useful lesson for subscription operators. Bundling a service into another purchase can accelerate adoption and give customers time to build a habit. It can also make subscriber totals look stronger than customer-chosen renewal behavior.

GM has shown that it can distribute connected services at scale. The next test is whether more drivers decide they’re worth buying again.

Sources

• GM Q2 2026 Letter to Shareholders
• GM Q2 2026 Earnings Presentation
• GM Q4 2025 Letter to Shareholders
• OnStar Super Cruise Pricing and Terms
• GM Is Quietly Becoming a Subscriptions Company

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• GM and Tesla Report Growing Demand for Connected-Car Subscriptions