Gen Y is more likely than older generations to own portable electronics, and more likely to research their vehicle options on the Internet.
Generation Y, the largest car-buying group since their baby boomer parents, will confound the problems facing domestic automakers, as their buying power continues to expand. This crowd at 75 million, and currently 15 years old to 32, already surpasses boomers in shear numbers, so they will ultimate redefine the market.
A just released study on Gen Y new vehicle buyers in the United States shows they are more likely than the generations before them to consider purchasing a Chinese or Indian branded vehicle, more willing to accept hybrid powertrains, and more likely to want the latest entertainment technology in their vehicle. They also view Japanese and German car brands much more favorably than their parents do.
Gen Y also places much more emphasis on image and price than older generations. Moreover, when buying American vehicles – 26% of Gen Y said that they would only consider buying American makes compared with 39% of older generations.
“Growing up with continuously evolving technology and electronics has given Generation Y a unique ability to adapt easily to change, a willingness to accept new brands, and an expectation that their vehicle provide the best of what is available,” said George Peterson, president of AutoPacific, the research firm that conducted the study.
The study underscores the opportunities — and perils — for automakers trying to reach Generation Y consumers as they move through their Teen, Young Adult and Young Family life-stages.
Generation Y is more likely than older generations to own portable electronics, more likely to research their vehicle options on the Internet, and – by a significant 29 percentage points — more likely to frequently multi-task while driving, which of course is a growing safety issue that pits the profitability of electronics and auto makers against the common welfare on our roads.
“They know what’s out there, they know the economical and environmental problems we face, and their vehicle expectations reflect that knowledge,” said Peterson.
In one area though, Gen Y is not significantly different from their forefathers – ecology. The survey says that 24% of Gen Y would pay more for a vehicle made with recycled materials compared to 20% of older generations.
AutoPacific’s study – “The Generation Y Opportunity” – is based on the results of an annual survey of more than 32,000 new car and light truck buyers in the United States. The study looks closely at Generation Y recent buyers of new vehicles and how they compare to older generations.