On Tuesday, the satellite radio service provider said it added 715,000 new customers during the second quarter. The number of people paying for its service rose 15% over the prior year to 25 million subscribers, Reuters notes.
The increase in quarterly subscribers prompted the company to raise its outlook for new subscribers this year to 1.5 million, up 100,000 from prior estimates.
Many new cars feature radios equipped to receive satellite radio and most feature a trial period subscription. U.S. auto sales rose strongly in May.
The news sent Sirius XM Radio shares up almost 2% in Tuesday morning trading.